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The initial public offer (IPO) of Bansal Wire Industries received 12,28,12,970 bids for shares as against 2,14,60,906 shares on offer, according to stock exchange data at 17:00 IST on Thursday (4 July 2024). The issue was subscribed 5.72 times.
The issue opened for bidding on Wednesday (3 July 2024) and it will close on Friday (5 July 2024). The price band of the IPO is fixed at Rs 243 to 256 per share. An investor can bid for a minimum of 58 equity shares and in multiples thereof.
The offer comprises only of fresh issue of equity shares aggregating upto Rs 745 crore.
The net proceeds will be used from the fresh issue towards repayment or prepayment of all or a portion of certain outstanding borrowings amounting Rs 452.68 crore, investment in subsidiary for repayment or prepayment of all or a portion of certain outstanding borrowings amounting Rs 93.708 crore, funding the working capital requirements amounting Rs 60 crore, and balance towards general corporate purposes.
The total outstanding borrowings were Rs 676.28 crore as on 31 May 2024. The total outstanding borrowings of subsidiary were Rs 103.92 crore.
Ahead of the IPO, Bansal Wire Industries on Tuesday, 2 July 2024, raised Rs 223.49 crore from anchor investors. The board allotted 87.30 lakh shares at Rs 256 each to 18 anchor investors.
Bansal Wire Industries is the largest stainless-steel wire manufacturer and the second largest steel wire manufacturer by volume in India. Manufacturing steel wires since the last 38 years, the company caters to various sectors, with a diversified portfolio spread across high carbon steel wire, mild steel wire (low carbon steel wire) and stainless-steel wire. It is adding a new segment of specialty wires. These will be manufactured at Dadri.
The firm reported a net profit of Rs 78.80 crore and total income of Rs 2,466.03 crore for the twelve months ended on 31 March 2024.
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