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Bansal Wire IPO is a book-built issue of Rs 745.00 crores. The issue is entirely a fresh issue of 2.91 crore shares.
The IPO opens for subscription on July 3, 2024, and closes on July 5, 2024. The price band for the IPO is set at ₹243 to ₹256 per share and the minimum lot size for an application is 58 Shares.
Company Summary
The Company along with its Subsidiary, Bansal Steel & Power Limited, offers over 3000 SKUs (i.e., stock-keeping units) in three broad segments, i.e., high carbon steel wire, mild steel wire (low carbon steel wire) and stainless steel wire, with their Company’s offering of approximately 2000 SKUs and their Subsidiary’s offering of 1500 SKUs.
They have built their network to ensure pan India presence across all regions of India. At present, they are present in 22 states and six union territories.
The company makes over 3,000 different types of steel wire products, ranging in size from very thin to very thick. They have more than 5,000 customers in different industries, which helps the company grow.
The company exports products to over 50 countries. It has 14 global representatives covering Bangladesh, Brazil, France, Germany, Israel, Italy, Netherlands, South Korea, South Africa, Sri Lanka, Turkey, the United Kingdom, the United States, and Vietnam. Our export turnover has grown at a CAGR of 47.15% in the last three fiscal years.
The company has four manufacturing units in Mohan Nagar, Ghaziabad, Loni Industrial Area, Ghaziabad, and Bahadurgarh, Jhajjar, Haryana. Out of four units two are located in Loni Industrial Area, Ghaziabad.
Since 2021, the company has established a sales team of over 50 experienced professionals to cover all regions of India and serve 5,000+ customers in various sectors.
Company Strengths
Our total income has increased at a CAGR of 5.86% from ₹ 22,050.72 million in Fiscal 2022 to ₹ 24,708.86 million in Fiscal 2024.
Our EBITDA has increased at a CAGR of 14.87% from ₹ 1,131.48 million in Fiscal 2022 to ₹ 1,493.09 million in Fiscal 2024
PAT has increased at a CAGR of 17.28% from ₹ 572.90 million in Fiscal 2022 to ₹787.98 million in Fiscal 2024.7.2
Their export turnover in Fiscal 2024 was ₹ 2,839.41 million, with European and U.S. markets accounting to more than 70% of the total exports in Fiscal 2024.
They are maintaining a year-on-year customer retention of 64.74%, 66.06% and 68.49% in Fiscal 2022, 2023, and 2024, respectively.
Company Financials
| Period Ended | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 |
| Assets | 1,264.01 | 749.05 | 695.48 |
| Revenue | 2,470.89 | 2,422.57 | 2,205.07 |
| Profit After Tax | 78.80 | 59.93 | 57.29 |
| Net Worth | 422.37 | 282.51 | 223.01 |
| Reserves and Surplus | 358.64 | 273.41 | 213.91 |
| Total Borrowing | 681.14 | 422.19 | 413.15 |
Amount in ₹ Crore | |||
Objectives of the IPO
The Company proposes to utilize the Net Proceeds from the Issue towards the following objects:
- Repayment or prepayment of all or a portion of certain outstanding borrowings availed by the Company
- Investment in their Subsidiary for repayment or prepayment of all or a portion of certain of its outstanding Borrowings
- Funding the working capital requirements of the Company
- General corporate purposes.
Promoters of the company
Arun Gupta, Anita Gupta, Pranav Bansal, and Arun Kumar Gupta HUF are the Promoters of the Company.
The Promoters collectively hold 93,808,050 Equity Shares, representing 73.60% of the pre-issue issued, subscribed, and paid-up capital, on a fully diluted basis, of the Company
IPO details
| IPO Date | July 3, 2024 to July 5, 2024 |
| Listing Date | Wednesday, July 10, 2024 |
| Face Value | ₹5 per share |
| Price Band | ₹243 to ₹256 per share |
| Lot Size | 58 Shares |
| Total Issue Size | 29,101,562 shares (aggregating up to ₹745.00 Cr) |
| Fresh Issue | 29,101,562 shares (aggregating up to ₹745.00 Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
Lot Allocation details
| Application | Lots | Shares | Amount |
| Retail (Min) | 1 | 58 | ₹14,848 |
| Retail (Max) | 13 | 754 | ₹193,024 |
| S-HNI (Min) | 14 | 812 | ₹207,872 |
| S-HNI (Max) | 67 | 3,886 | ₹994,816 |
| B-HNI (Min) | 68 | 3,944 | ₹1,009,664 |
Allotment Schedule
| Basis of Allotment | Monday, July 8, 2024 |
| Initiation of Refunds | Tuesday, July 9, 2024 |
| The credit of Shares to Demat | Tuesday, July 9, 2024 |
| Listing Date | Wednesday, July 10, 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on July 5, 2024 |
IPO Reservation
| Investor Category | Shares Offered |
| QIB Shares Offered | Not more than 50% of the Net Issue |
| Retail Shares Offered | Not less than 35% of the Net Issue |
| NII (HNI) Shares Offered | Not more than 15% of the Net Issue |
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