Bansal Wire IPO Details
Issue Date
03 Jul - 5 Jul'24
Price Range
₹243 - ₹256
Lot Size
58
IPO Size
₹745.00 Cr
Bansal Wire IPO Listing Details
Listing On
10 Jul'24
Issue Price
₹256
Listed Price
₹ 356
Retail Gain/Listing Gain
▲39.06%
Schedule of Bansal Wire IPO
Start date
03/07/2024
End date
05/07/2024
Allotment of bids
Refund Initiation
09/07/2024
Listing on exchange
10/07/2024
Bansal Wire Industries IPO Review | Product portfolio, issue details, financials | Must Watch
Kotak Neo
•2m 52s
Bansal Wire Industries Company Background
Bansal Wire Industries along with its subsidiary, Bansal Steel & Power Limited, manufactures over 3000 SKUs in three broad segments - high carbon steel wire, mild steel wire (low carbon steel wire) and stainless steel wire.
High-carbon steel wires are strong and durable and are used in springs and cutting tools. Mild steel wires are ductile and versatile and used in power transmission, agriculture, and construction. Stainless steel wires, which are made from corrosion-resistant alloys, are used in consumer goods, automotive, and general engineering.
With that, let's take a look at the competitive strengths and risk factors for Bansal Wire Industries Limited:
Bansal Wire Industries Competitive Strengths
More than 5,000 customer base with a presence across various sectors
The company has a diverse customer base of over 5,000 across various industrial sectors. In Fiscal 2024, Bansal High Carbons Private Limited contributed 7.30% and S. S. Pranav Steels Private Limited 6.05% of total sales. No other customer contributed more than 5.00% of sales, and no sector exceeded 25% of sales in FY24, FY23, and FY22. Major sectors served include automotive, cables, fencing, infrastructure, and agriculture, with the automotive and consumer durables sectors providing the highest EBITDA margins.
Business model with a stable and consistent margin profile
The company's products are offered at various price points, with direct sales mitigating pricing risk. Prices are set considering landing costs, discounts, and taxes, and are adjusted monthly to manage raw material cost volatility. Production is primarily order-based at pre-agreed prices, maintaining margins and a cost-plus model. This approach has kept EBITDA margins between 4.73% and 6.04% over the past three fiscals.
Economies of scale
Over the last 38 years, the company has established a well-integrated ecosystem for manufacturing products, and for the storage and transportation of raw materials and finished goods.
Risk Factors
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The company relies on their top 10 suppliers for raw materials and work-in-progress goods used in the manufacturing processes.
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Any disruption, breakdown or shutdown of their manufacturing facilities may have a material adverse effect on the business.
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Their manufacturing facilities and registered office are located on leasehold lands and rental basis. If they are unable to renew existing leases or relocate operations on commercially reasonable terms, there may be a material adverse effect on the business.
Key Strategies
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Expansion of the customer base in North India and increase penetration in other geographies.
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Increasing export sales and growing sectors like automotive and infrastructure.
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Entering into the B2C segment of steel products and establishing a retail distribution network.
Bansal Wire Industries Limited Key Financials
Here are the key financials for Bansal Wire Industries Limited:
How to apply for IPO through ASBA
Kotak Neo
•04m 01s
How To Apply for Bansal Wire Industries Ltd IPO?
Here are the steps to apply for Bansal Wire Industries Ltd IPO:
Step 1: Log in to your Kotak Neo Demat account Log in to your Demat account to access IPO investments. Next, select the current IPO section.
Step 2: Specify IPO details Enter the number of lots and the price you wish to apply for.
Step 3: Enter UPI ID After entering your UPI ID, click submit. This will place your bid with the exchange.
Step 4: Mandate Notification Your UPI app will receive a mandate notification to block funds.
Step 5: Approve Request Your funds will be blocked once you approve the mandate request on your UPI.
Bansal Wire IPO FAQs
The Bansal Wire IPO opens for subscription from 03-07-2024 to 05-07-2024, with a total issue size of ₹745.00 Cr. The IPO price band is ₹243 to ₹256 per share with a lot size of 58. The company aims to list the shares on BSE & NSE on 10-07-2024.
The Bansal Wire IPO will open for subscription on 03-07-2024 and will close on 05-07-2024 for investors.
The minimum lot size for the Bansal Wire IPO is 58 equity shares, requiring a minimum investment of ₹14848 for retail investors applying in the IPO.
The price band of the Bansal Wire IPO has been fixed at ₹243 to ₹256 per equity share.
You can apply for the Bansal Wire IPO online through the Kotak Neo Website or the Kotak Neo App using UPI or ASBA during the IPO subscription period.
Bansal Wire IPO allotment will take place on [-].
You can check the Bansal Wire IPO allotment status online on the registrar’s website or on the NSE and BSE IPO allotment pages using your application number, PAN, or demat account details.
Bansal Wire shares will list on the stock exchanges on 10-07-2024.
You can find detailed information about the Bansal Wire IPO, including its business operations, financial performance, risk factors, and IPO objectives, in the Draft or Red Herring Prospectus (RHP).
The Bansal Wire Industries Limited IPO has an issue size of Rs. 745 crores. The IPO opens for subscription on 3rd July 2024 and closes on 5th July 2024
KFin Technologies Limited is the registrar for this IPO.
Opening of account will not guarantee allotment of shares in IPO. Investors are requested to do their own due diligence before investing in any IPO.
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