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Published 10:34 IST, July 3rd 2024

Bansal Wire Industries IPO opens today: Check price band, latest GMP and more

Bansal Wire holds significant market shares of 20% in the stainless-steel wire segment and approximately 4% in the steel wire segment as of March 2023.

Reported by: Business Desk
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Bansal Wire IPO
Bansal Wire IPO | Image: Bansal Wire

Bansal Wire IPO: Bansal Wire Industries Ltd., a prominent player in the stainless-steel wire manufacturing sector, is set to open its Initial Public Offering (IPO) today, July 3, 2024. The company, which operates in high carbon steel wire, mild steel wire, and stainless-steel wire segments, has established a robust presence both domestically and internationally.

Bansal Wire Industries Ltd. is known for its extensive product range, offering over 3,000 Stock Keeping Units (SKUs). It caters to more than 5,000 customers across various sectors, including power and transmission, agriculture, poultry, construction, and the automobile industry. The company's reach extends globally, with exports to countries like Bangladesh, Brazil, France, Germany, Israel, and the USA.

Key highlights

  • Established Brand Equity: Bansal Wire Industries Ltd. holds significant market shares of 20 per cent in the stainless-steel wire segment and approximately 4 per cent in the steel wire segment as of March 2023. The company's revenue for FY24 was reported at Rs 2,444.7 crore. Its strong brand equity allows it to secure raw materials at competitive costs, attract and retain skilled employees, and maintain high customer retention and referral rates  .
  • Diversified Customer Base: With over 5,000 customers across various industries, Bansal Wire Industries Ltd. ensures that no single sector or customer dominates its sales. This diversification reduces risk and enhances stability. In FY22, FY23, and FY24, no individual customer contributed more than 5 per cent to the company’s sales, and no sector accounted for more than 25 per cent  .
  • Varied Product Portfolio: The company boasts a diverse product portfolio, constantly adding new SKUs to meet customer requirements. In FY24 alone, Bansal Wire Industries Ltd. launched 27 new products. This approach ensures a good mix of high-volume and high-margin products, supported by global certifications and accreditations  .
  • Robust Manufacturing Facilities: The company operates four manufacturing facilities in the National Capital Region (NCR), with a total installed capacity of 2,59,000 MTPA for mild steel, high carbon, and stainless-steel wires. Additionally, a new facility in Dadri, with an installed capacity of 3,46,000 MTPA, is set to become one of the largest steel wire plants in Asia.

IPO details

  • Opening Date: July 3, 2024
  • Closing Date: July 5, 2024
  • Price Band: Rs 243 – Rs 256 per share
  • Fresh Issue Size: Rs 745 crore

The funds raised through this IPO will be used to meet working capital requirements and repay borrowings, according to the DRHP filing.

Grey Market Premium

The Grey Market Premium (GMP) of Bansal Wire IPO is Rs 66 as of last updated Jul 3, 2024 08:01 AM, according to Investor Gain. With the price band of 256.00, Bansal Wire IPO's estimated listing price is Rs 322 (cap price + today's GMP).

Financial performance

Bansal Wire Industries Ltd. has shown consistent growth, with a revenue CAGR of 20.3 per cent from FY18 to FY23. For FY24, the company reported a revenue of Rs 2,466 crore, an EBITDA of Rs 144.5 crore, and a net profit of Rs 75.6 crore. The company's valuation at the upper price band is based on an EV/EBITDA multiple of 27.3x.

Updated 10:34 IST, July 3rd 2024