Bansal Wire Industries Ltd IPO: Review, Valuation, Date & GMP

Bansal Wire Industries Limited IPO - Complete Overview

Bansal Wire Industries Limited is a stainless-steel wire manufacturer that was founded in December 1985. The company is divided into three primary business segments: stainless steel wire, low carbon steel wire (also known as mild steel wire), and high carbon steel wire. The company produces more than 3,000 distinct kinds of steel wire products, with sizes ranging from extremely thin to extremely thick. Their clientele spans over 5,000 industries, contributing to the company's expansion.

The business doesn't depend too heavily on any one client or clientele in particular to lower risk. They also employ a pricing model to assist them adjust to variations in the cost of materials. The company has established a strong foothold in the worldwide market by exporting its products to over 50 countries and operating throughout India.

The business exports goods to more than 50 nations. Bangladesh, Brazil, France, Germany, Israel, Italy, Netherlands, South Korea, South Africa, Sri Lanka, Turkey, United Kingdom, United States, and Vietnam are among its 14 global representatives. Over the past three fiscal years, our export revenue has increased at a CAGR of 47.15%.

In Mohan Nagar, Ghaziabad; Loni Industrial Area, Ghaziabad; and Bahadurgarh, Jhajjar, Haryana, the company has four manufacturing facilities. Two of the four units are situated in Ghaziabad's Loni Industrial Area.

To service more than 5,000 clients across a range of industries, the company has assembled a sales team including more than 50 seasoned experts since 2021, covering every region of India.

Dear readers, we are pleased to provide details about the approaching IPO. The company plans to launch its IPO on July 3, 2024.

Let's take a closer look at the IPO's offerings below.

Bansal Wire Industries Limited IPO Overview

Bansal Wire Industries Limited IPO is a MainBoard book-built issue of Rs.745 crore with a Fresh Issue of 2.91 crore Shares (amounting to Rs.745 crore) out of which 35% is allocated to retail investors, 50% to institutional investors and 15% to non-institutional investors. 

The IPO will be available to investors on July 03, 2024, and conclude on July 05, 2024. The anticipated listing date for the IPO is Wednesday, July 10, 2024, and it will be held on the BSE and NSE. The price band of the share is Rs.243 to Rs.256.

If You want to apply for this IPO, Click Here to Open a Demat Account.

Company Financial

Bansal Wire Industries Limited's revenue climbed by 1.99%, while profit after tax (PAT) decreased by 31.48% during the fiscal years ending March 31, 2024, and March 31, 2023. 

Below is the synopsis of the company's financial data for the financial year that concluded on 31 March 2023.

• The company’s total revenue is over Rs.500 crore.

• The net worth of the company has climbed by 26.29%.

• The company's EBITDA is reduced by 1.16%.

• The total assets of the company rose by 7.83%

• The Liabilities of the company decreased by 23.24%.

(Amount in Crore)

Period	31 Mar 2024	31 Mar 2023	31 Mar 2022
Total Assets	1,264.01	749.05	695.48
Total Revenue	2,470.89	2,422.57	2,205.07
PAT	78.80	59.93	57.29
Net worth	422.37	282.51	223.01
Reserve & Surplus	358.64	273.41	213.91
Total Borrowings	681.14	422.19	413.15

 

Revenue Bifurcation

Below is the revenue breakdown for various activities:

(Amount in Crore)

Net Cash flow in multiple Activities	The period of six months ended on 30 Sep 2023	Fiscal 2023	Fiscal 2022
Net Cash Flow Operating Activities	830.40	1, 025.20	115.42
Net Cash Flow Investing Activities	519.30	872.49	191.79
Net Cash Flow Financing Activities	312.02	149.98	304.84

 

Break-down of revenue by products sold (Fiscal 2023)

 

The Objective of the Issue

The company desires to use the Net Proceeds from the Issue to fulfill its following goals:

• Payment in full or in part for certain outstanding loans obtained by its business and its subsidiary.

• Meeting the needs for working capital.

• General business reasons.

 

Peers of Bansal Wire Industries Limited

Company Name	Face Value (Rs.)	EPS (Rs.)	P/E (x)
Rajratan Global Wire Ltd.	2	14.15	35.88
DP Wires Limited	10	23.43	19.29
Bedmutha Industries Ltd.	10	6.28	38.65

 

Evaluation

The price of this IPO is Rs.243 to Rs.256 for each share.

Evaluation of P/E Ratio

The P/E Ratio of Bansal Wire Industries Limited IPO is 41.41.

Comparative Analysis with Listed Peers

The average P/E Ratio of the industry is 55.52.

Particulars	P/E Ratio
Highest	55.52
Lowest	55.52
Average	55.52

 

IPO's Strengths 

•  Promoters have three generations of experience and have been in the wire trading industry since 1938.

• The company is establishing the largest steel wire manufacturing facility in Dadri, India, and is already operating out of four existing manufacturing facilities. 

• Additionally, this factory would have some of Asia's largest capacity. Economies of scale.

• Bansal Wire now holds the second-largest position in the nation's steel wire production industry.

•  It is a market leader in the wire manufacturing sector and provides a wide range of goods (more than 3,000 SKUs).

• Due to its "Cost Plus" business model and ability to adapt to changes in commodity prices, the company has been showing a consistent increase in sales and profitability.

• Additionally, the company's product mix and plant capabilities enable it to add or switch production lines based on market demands.

 

 

IPO’s Weaknesses 

• Any delays, shortages, or disruptions in the raw material supply that it depends on for its manufacturing process might have a significant negative impact on the company's operations, financial situation, and cash flows.

• Its registered office and production facilities are situated on leasehold land and are rented. There could be a significant negative impact on its operations, finances, and business if they are unsuccessful in extending its current leases or moving its facilities on commercially fair terms.

• Their success depends on how the steel wire market performs. Any unfavorable changes to the factors influencing the steel wires market could have a negative effect on its operations, cash flows, financial situation, and future prospects.

• Sales of its products will decline if they are unable to uphold and improve its brands, including its capacity to defend its brands through intellectual property, and this will have a materially negative impact on its operational results.

• They intend to enter new geographic areas, but doing so could expose them to substantial liability and cause them to lose all or part of their investment there. As a result, its operations, financial health, and business could suffer.

• The availability of fake goods, such as goods that other people pass off as their own, and any inability on their part to defend or uphold their ownership and use rights to trademarks, brand names, and identities could be detrimental to their company's operations and ability to compete.

 

IPO GMP Today

The Latest GMP of Bansal Wire Industries Limited IPO is Rs.70.

 

Bansal Wire Industries Limited IPO timetable (Tentative)

The IPO is scheduled from July 3 to July 5, 2024, with allotment on July 8, refund initiation on July 9, and listing on July 10, 2024.

Events	Date
IPO Opening Date	July 3, 2024
IPO Closing Date	July 5, 2024
IPO Allotment Date	July 8, 2024
Refund initiation	July 9, 2024
IPO Listing Date	July 10, 2024

 

Bansal Wire Industries Limited IPO Details 

The IPO with a face value of Rs.5 per Share is set to start on July 3, close on 5 July, and offer a total issue size of 2.91 crore Shares (amounting to Rs.745 crore) comprising a whole fresh issue. 

IPO Opening & Closing date	July 3, 2024 to July 5, 2024
Face Value	Rs.5 per Share
Issue Size	2.91 crore Shares of Rs.745 crore
Offer for Sale	-
Fresh Issue	2.91 crore Shares of Rs.745 crore
Listing at	NSE, BSE
Issue Type	Book Built Issue IPO
Registrar	Kfin Technologies Limited

 

Bansal Wire Industries Limited IPO Lot Details 

The IPO allows retail investors to invest in a minimum and maximum of 1 lot (58 shares) amounting to Rs.14848, and 13 lots (754 Shares) amounting to Rs.193,024 respectively, while for HNI investors, the minimum lot is 14 (812 Shares) amounting to Rs.207,872.

Minimum Lot Investment (Retail)	1 lot
Maximum Lot Investment (Retail)	13 lots
S-HNI (Min)	14 lots
S-HNI (Max)	67 lots
B-HNI (Min)	68 lots

 

Bansal Wire Industries Limited IPO Reservation

QIB Share Portion	50%
Retail Investors Share Portion	35%
NII Shares Portion	15%

 

 

Promoters and Management of Bansal Wire Industries Limited IPO

• Arun Gupta

• Anita Gupta

• Pranav Bansal 

• Arun Kumar Gupta HUF

Pre-issue Promoter shareholding	95.78%
Post-issue Promoter shareholding	-

 

Bansal Wire Industries Limited IPO Lead Managers

• SBI Capital Markets Limited

• Dam Capital Advisors Ltd (Formerly Idfc Securities Ltd)

 

Dividend Policy

The company has paid dividends per preference Share in the financial years 2021, and 2022 as 0.60 crores.

 

Conclusion

The company’s net worth, and total assets, have increased while liabilities and EBITDA fell in the last few financial years. To fulfill its objectives, the company is currently conducting an initial public offering (IPO) for the general public.

We believe the information offered in this blog helps you learn about the company's financial performance. So this blog will be very useful to you if you are looking for information about the approaching IPO since it will give you reliable information about the company's, insights, financials, and past performance. If this informative blog piques your interest, you may be interested in reading our other related and useful posts on our website.

 

 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company Click Here to Download the DRHP.

 

We believe this blog would be very beneficial to you if you are looking for such information related to this upcoming IPO since this blog would provide you with accurate information about the company's, insights, financials, and past performance. If this informative blog matches your interest, you might be interested in reading our other related useful blogs on our website.

Disclaimer: This IPO analysis is only for informational purposes and should not be considered as investment advice. Always do your research and consult with a financial advisor.

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