Bansal Wire Industries Raises Over Rs 223 Crore from Anchor Investors Ahead of IPO
Bansal Wire Industries, a leading maker and exporter of steel wires, has successfully collected more over Rs 223 crore from anchor investors ahead of its Initial Public Offering. The IPO is expected to open for public subscription from July 3 to July 5, with a price band of Rs 243 to Rs 256 per share.
Key Highlights
- Anchor Investors: The company has allotted 87.30 lakh shares to 18 funds at Rs 256 each, raising Rs 223.5 crore. Some notable investors include SBI Mutual Fund, HDFC Mutual Fund, Kotak Mahindra Mutual Fund, Tata Capital Mutual Fund, Edelweiss Mutual Fund, Bandhan Mutual Fund, and SBI Life Insurance Company.
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IPO Details:
- The whole fresh issue of equity shares is worth Rs 745 crore.
- There is no offer for sale (OFS) component.
- Price range: Rs 243-256 per share.
- The issue size distribution is as follows: 50% for qualified institutional investors (QIBs), 35% for retail investors, and 15% for non-institutional investors.
- The minimum bid is 58 shares, with multiples of 58 afterward.
Fund Utilization
The proceeds from the IPO will be utilized for the following purposes:
- Payment of debt.
- Supporting working capital requirements.
- General corporate purposes.
Company Overview
Bansal Wire Industries manufactures and exports steel wires, and operates in three primary segments:
- High-carbon steel wire.
- Mild steel wire (a low-carbon steel wire).
- stainless steel wire.
The company also intends to launch a new line of specialty wires through its planned facilities in Dadri. This development is projected to boost its market presence in the upcoming fiscal year.
Financial Performance
- Total income increased at a 28% CAGR to Rs 2,422.56 crore in FY23, up from Rs 1,480.41 crore in FY21.
- Profit After Tax (PAT) increased at a CAGR of 21.7%, reaching Rs 59.93 crore in FY23, up from Rs 40.46 crore in FY21
Lead Managers
SBI Capital Markets and DAM Capital Advisors are the bookrunning lead managers for the IPO.
Summary Table
| Aspect | Details |
|---|---|
| IPO Date | July 3-5 |
| Price Band | Rs 243 to Rs 256 per share |
| Total Fresh Issue | Rs 745 crore |
| Anchor Investors | SBI MF, HDFC MF, Kotak MF, Tata Capital MF, Edelweiss MF, Bandhan MF, SBI Life Insurance |
| Funds Raised from Anchors | Rs 223.5 crore |
| Use of Funds | Debt payment, working capital, corporate purposes |
| Key Financials (FY21 to FY23) | – Total Income: Rs 1,480.41 crore to Rs 2,422.56 crore<br>- PAT: Rs 40.46 crore to Rs 59.93 crore |
| Segments | High carbon steel wire, mild steel wire, stainless steel wire |
| New Segment | Specialty wires (upcoming Dadri plant) |
| Lead Managers | SBI Capital Markets, DAM Capital Advisors |
Conclusion
Bansal Wire Industries’ IPO is a big opportunity for investors, because to its solid financial performance and expansion plans. The company’s expansion into specialty wires, as well as the successful anchor financing round, highlight its long-term potential for growth.
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