Bansal Wire Industries Limited

About Bansal Wire Industries Limited Bansal Wire Industries Limited, incorporated in 1985, is a manufacturer of steel wires. It offers wires in three broad segments: high-carbon steel wire, mild steel wire, and stainless steel wire. Its product portfolio includes wires for springs, wires for ropes, mild steel wires, stainless steel wires, cold-heading quality wires, cable armoring wires and strips, galvanized steel wires, zinc coating, profile/ shaped wires, and more. It offers ~2000 SKUs (stock-keeping units), while its subsidiary, Bansal Steel and Power Limited, offers 1500 SKUs. It has five established manufacturing facilities in the National Capital Region, with an installed capacity of 259,000 MTPA of mild steel, high-carbon, and stainless-steel wires at four facilities. Further, the company commenced initial production with a capacity of 1,000 metric tonnes of high-carbon wires at the Dadri manufacturing facility. Bansal Wire Industries sources its raw materials from a diversified base of suppliers including the Steel Authority of India, Rashtriya Ispat Nigam, Mukand, Rathi Steel and Power and JSW Steel. It sells its products under the brand name ‘BANSAL’ and is present in 22 states and six union territories with the help of its dealer distribution network. It also exports its products and 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 of America, and Vietnam. Between FY22 and FY24, the company saw a 3% CAGR rise in its revenue from operations and 11% in its profit. Moreover, the demand for wire rod production is expected to grow at a CAGR of 6.5% to 7.5% between FY23 and FY27, which could benefit the company. Now, Bansal Wire Industries Limited is launching its initial public offer (IPO). The total IPO issue size is ₹745 crore, comprising entirely the fresh issue. The money raised from the fresh issue will be used to repay borrowings, invest in its subsidiary, fund the working capital requirements, and for general corporate purposes. Its shares will be listed on the NSE and BSE. Here are key details about the Bansal Wire Industries IPO: Company Name Bansal Wire Industries Limited Limited Company Type Private Company Established On 1985 Bansal Wire Industries Limited IPO Opening Date 3rd July 2024 Bansal Wire Industries Limited IPO Closing Date 5th July 2024 Bansal Wire Industries Limited IPO Allotment Status 8th July 2024 Credit of Shares to the Demat Account 9th July 2024 Bansal Wire Industries Limited IPO Listing Date 10th July 2024 Bansal Wire Industries Limited IPO Face Value ₹5 per share Bansal Wire Industries Limited IPO Lot Size 58 shares Bansal Wire Industries Limited IPO Issue Size Approx ₹ 745 crore Bansal Wire Industries Limited IPO to be Listed on BSE, NSE Bansal Wire Industries Limited IPO Price band ₹243 – ₹256 per share Financial snapshot Particulars FY22 FY23 FY24 Revenue ₹ 2,198 crore ₹ 2,413 crore ₹ 2,466 crore Net Profit ₹ 57.2 crore ₹ 59.9 crore ₹ 78.7 crore Here’s a quick look at Bansal Wire Industries Limited IPO’s strengths, weakness, opportunities and risks (SWOT analysis) Strengths and opportunities Established position with a 20% market share in the stainless steel wire industry as of 31 March 2024. The company has a customer base of 5,000, spread across various industrial sectors. Some of its key domestic and international customers include S.S. White Technologies India, NHK Automotive Components India, Hettich, KEI Industries, Lapp India, Suprajit Engineering and more. Increased operational efficiency through manpower reduction by man occupation mapping, automation in packing of finished goods, and evaluation of the layout of machines to enhance lean manufacturing and avoid bottlenecks. Product portfolio with over 3,000 SKUs across the steel wire industry having launched 27 new products in FY24. Stable margin profile with EBITDA margins of 5%, 4%, and 6% in FY22, FY23, and FY24, respectively. Risks and threats The cost of raw materials used in manufacturing is subject to volatility which may have an adverse effect on its business and financial condition. It may require additional financing as it has substantial working capital requirements, with borrowings of ₹314 crore as of FY24. Operates in a competitive and fragmented Indian steel wire industry with top 10 manufacturers contributing to around 22% of the overall production. Has had low EBITDA and PAT margins in the last three fiscals with EBITDA margins of 5%, 4%, and 6% and PAT margins of 2%, 2%, and 3% in FY22, FY23, and FY24, respectively. Has consistently experienced negative cash flows from investing activities in the last three fiscals. Exposed to risk associated with export sales and foreign currency fluctuation as 11% of its total revenue came from operations outside India in FY24. Bansal Wire Industries Limited IPO details |Bansal Wire Industries Limited IPO date According to the offer document filed by the company with the SEBI, the Bansal Wire Industries IPO’s opening date – in other words, the Bansal Wire Industries IPO launch date – will be 3rd July 2024. The Bansal Wire Industries IPO closing date is 5th July 2024. After this, investors will be updated about the allotment status on 8th July 2024. Investors, who have been allotted shares, can expect them to be credited to their demat account on 9th July 2024. The Bansal Wire Industries IPO listing date is 10th July 2024. The listing date is the date on which the shares of a company get listed on the bourses – NSE and BSE. |Bansal Wire Industries Limited IPO Price Band The IPO is a fresh issue. The Bansal Wire Industries IPO price band has been set between ₹243 and ₹256 per share. Interested investors can choose a price within this band to apply for the IPO. The Bansal Wire Industries IPO listing price will be determined on 10th July 2024. The listing price is the price at which a company’s shares debut on the stock exchanges. |Bansal Wire Industries Limited IPO Lot size The Bansal Wire Industries IPO details have been declared. The Bansal Wire Industries IPO lot size is set at 58 shares and an investor can apply for a minimum of 1 lot. Meanwhile, the Bansal Wire Industries IPO issue size is approx ₹745 crore. How to pre-apply for the Bansal Wire Industries Limited IPO? You can pre-apply for the Bansal Wire Industries Limited IPO on Upstox. The pre-application for this IPO, which means pre-apply open date, usually begins a day before the IPO opens for subscription. Follow these steps to pre-apply for the IPO: Login to your Upstox account, using your six-digit PIN After successfully logging in, click on ‘Discover’ On the Discover tab, you will find the ‘Invest in IPO’ section Under the Invest in IPO section, look for the ‘Bansal Wire Industries Limited IPO’ tab and click on it Now fill in all the required information, like ‘bid price’ and ‘lot size’ Confirm and click on ‘Pre-Apply’ Accept the mandate on your UPI app How to apply for the Bansal Wire Industries Limited IPO? If you are interested in this investment opportunity but unsure how to apply for the Bansal Wire Industries Limited IPO, here we are listing out the steps for you. When the public issue opens for subscription, one can follow this step-by-step guide on how to apply for the Bansal Wire Industries Limited IPO on Upstox: Login to your Upstox account, using your six-digit PIN After successfully logging in, click on ‘Discover’ On the Discover tab, you will find the ‘Invest in IPO’ section Under the Invest in IPO section, look for the ‘Bansal Wire Industries Limited IPO’ tab and click on it Now fill in all the required information, like ‘bid price’ and ‘lot size’ Confirm and click on ‘Apply’ Accept the mandate on your UPI app How to check the Bansal Wire Industries Limited IPO allotment status? When the allotment process is completed, you can check the status of your application on the Upstox app. Share allotment is generally done around five to six days after an IPO closes. Here’s a step-by-step guide on how to check the Bansal Wire Industries Limited IPO allotment status: Login to your Upstox account, using your six-digit PIN After successfully logging in, click on ‘Discover’ On the Discover page, you will find the ‘Invest in IPO’ section Under the Invest in IPO section, you will find the ‘View all’ option Once you click on ‘View all’, you will be directed to the ‘IPO’ tab In the ‘IPO’ tab, click on ‘My applications’ In ‘My applications’, under the History section, your Bansal Wire Industries Limited IPO allotment status will be mentioned Check Allotment Status Open a demat account with Upstox to apply for the Bansal Wire Industries Limited IPO To apply for the Bansal Wire Industries Limited IPO, you need to mandatorily have a demat account. A demat account helps you hold the shares you buy in a dematerialised format. If you don’t have a demat account yet, you can open one with Upstox by visiting our website or by downloading the app. Here is a step-by-step guide on how to open a demat account with Upstox: Click here to visit the demat account opening page on the Upstox website. Enter your phone number and other essential details to begin opening a demat account. Upload the scanned copies of your PAN, Aadhaar card, a cancelled cheque, and your bank statement as needed. Complete the e-verification using the OTP sent to your registered mobile number. This is all it takes to open a demat account with Upstox. Easy and quick, right? Open Demat Account Upstox – trading app to apply for the Bansal Wire Industries Limited IPO Applying for IPOs with Upstox is extremely easy. The user-friendly interface and top-notch security make Upstox one of the leading trading apps in India. You can apply for the Bansal Wire Industries Limited IPO on Upstox, provided you have a demat account. As mentioned in the previous section, you can simply follow the steps to open a demat account with Upstox. The biggest advantage is that when you apply for an IPO using your Upstox account, the brokerage charges are zero. In fact, courtesy of its robust features and minimal charges, Upstox is among the most preferred trading apps. Lakhs of Indians trust Upstox as it is a reliable trading platform that makes IPO applications easy.