Bansal Wire Industries IPO Day 1: Issue oversubscribed, retail investors lead

The initial public offering (IPO) of Bansal Wire Industries has been subscribed 1.05 times so far on the first day of the bidding on Wednesday.

The issue, open from July 3 to July 5, received bids for 2.25 crore shares against 2.14 crore shares on offer till 2:05 pm on July 3.

The retail portion was booked 1.61 times the allotted quota, while the part set aside for non-institutional investors was booked 1.15 times the reserved quota. The qualified institutional buyers (QIBs) category has not received bids yet.

Before the IPO, the steel wire manufacturer collected more than ₹223 crore in the anchor round from investors such as SBI Mutual Fund (MF), Kotak Mahindra MF, HDFC MF, Tata Capital MF, Bandhan MF, SBI Life Insurance Company, and Edelweiss MF.

The company allocated 87.30 lakh shares to 18 funds at ₹256 per scrip, aggregating to the transaction size of ₹223.5 crore.

The maiden public issue, with a price band of ₹243 to ₹256 per share, is a fresh issue of shares worth ₹745 crore with no offer-for-sale (OFS) component involved.

Funds generated from the IPO will be used to repay debt, support working capital requirements, and for general corporate purposes.

Bansal Wire Industries IPO: Timeline

• Bidding dates: July 3 to July 5
• Allotment finalisation: July 8
• Refund initiation: July 9
• Demat transfer: July 9
• Listing: July 10

About Bansal Wire

Bansal Wire Industries is a manufacturer and exporter of steel wires, such as high-carbon steel wire, mild steel wire, and stainless steel wire.

The company has proposed to add a a new segment of specialty wires

Also, the company plans to introduce a new segment of speciality wires with the opening of its upcoming plant in Dadri, which will help it increase its market presence in the upcoming fiscal year.

The company's total income rose at a CAGR of 28% to ₹2,422.56 crore in financial year 2022-23 from ₹1,480.41 crore in FY21, and net profit increased at a CAGR of 21.7% to ₹59.93 crore in FY23 from ₹40.46 crore in FY21.

DAM Capital Advisors and SBI Capital Markets are the book-running lead managers on the issue.