Bansal Wire's ₹745 cr IPO open on July 3: Check price band and other details

The initial public offering (IPO) of steel manufacturer Bansal Wire Ltd is set to hit the markets next week. Ahead of the opening of this mainboard IPO on July 3, Wednesday, the company announced some important details about the issue on Friday, June 28.

If you are planning to invest your money in the Bansal Wire IPO, here are some key details you shouldn’t miss.

Bansal Wire IPO price band

The price band of the Bansal Wire IPO has been fixed at ₹243 to ₹256 per share. The minimum bid quantity, also known as lot size, has been set at 58 shares. This means that the minimum application amount for retail investors would be ₹14,848 (if bidding is done at the upper end of the price band).

Bansal Wire IPO details

The Bansal Wire IPO is a 100% book-built issue that aims to raise ₹745 crore. It comprises entirely a fresh issuance of shares with a face value of ₹5 each, with no offer-for-sale (OFS) component.

The company has reserved 50% of the net issue for qualified institutional buyers (QIBs), 35% for retail investors and 15% for non-institutional investors.

SBI Capital Markets Ltd and Dam Capital Advisors Ltd (formerly IDFC Securities Ltd) are the issue's book-running lead managers, while Kfin Technologies Ltd is its registrar.

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Bansal Wire IPO objective

Bansal Wire proposes to use the net proceeds from the issue for repayment or prepayment of all or a portion of certain outstanding borrowings availed by the company and its subsidiary; funding the working capital requirements and general corporate purposes.

Elaborating on the break-up, Bansal Wire said that it would spend ₹452.7 crore out of the net fresh issue proceeds for repaying debt, ₹93.7 crore for repaying the subsidiary's debt and ₹60 crore for working capital requirements. The remaining money would be assigned for general corporate purposes.

Bansal Wire IPO: Important dates

Bansal Wire IPO opens for subscription on July 3 and closes on July 5. The allocation to anchor investors is scheduled to take place on July 2. The allotment of shares is expected to be finalised on July 8. Successful bidders, who are allotted shares, can expect them to be credited to their demat accounts by July 9, with others receiving the refunds on the same day. Bansal Wire shares are expected to be listed on both BSE and the National Stock Exchange of India (NSE) on July 10.

About Bansal Wire

Incorporated in 1985, Bansal Wire is one of the largest stainless steel wire manufacturing companies in India. The company operates in three main segments: high-carbon steel wire, low-carbon steel wire (mild steel wire) and stainless steel wire.

It makes over 3,000 different types of steel wire products, ranging in size from very thin to very thick. The company caters to over 5,000 customers from a wide range of sectors such as automotive, general engineering, infrastructure, hardware, consumer durables, power and transmission, agriculture and auto replacement.

For 2023-24, the company’s revenue stood flat at ₹2,470 crore compared with ₹2,422 crore in 2022-23. Profit after tax (PAT) rose 31.5% to ₹78.8 crore in FY24 compared with ₹59.9 crore in FY23.

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