Bansal Wire Industries’ IPO, valued at ₹745 crore, is set to list between ₹330-340 per share, anticipating gains of 30%. Investors are advised to book profits, with expectations of listing above ₹315, showing gains between 42-65% due to overwhelming response.
Bansal Wire Industries IPO is scheduled to list today (Wednesday, July 10) at 10:00 IST on both the BSE and NSE. Trading in Bansal Wire Industries shares will commence in a special pre-open session, with the BSE including the shares in its ‘B’ Group of Securities list effective from today.
Overview of Bansal Wire Industries IPO Details
Amit Goel, Co-Founder & Chief Global Strategist at Pace 360, described Bansal Wire Industries as a stainless-steel wire manufacturer established in 1985, operating in three segments: stainless steel, low-carbon steel, and high-carbon steel wire. With the metal wire industry being competitive and fragmented, he forecasts a listing price of approximately ₹330-340 per share, implying a 30% gain. Goel advises investors to consider booking profits post-listing.
Bansal Wire’s IPO, open for subscription from July 3 to July 5, garnered strong investor interest. The company raised ₹745 crore through a book-built issue of 2.91 crore fresh equity shares, with no offer-for-sale (OFS) component. The IPO’s price band was fixed at ₹243 to ₹256 per share.
Investor Response and Allotment Details
Bansal Wire IPO allotment was finalized on July 8, with the listing date set for July 10. The IPO saw overwhelming demand, subscribing 59.57 times overall, with bids received for 127.85 crore equity shares against the offer of 2.14 crore shares. Retail category subscription was 13.64 times, Non-Institutional Investors (NII) subscribed 51.46%, and Qualified Institutional Buyers (QIBs) portion oversubscribed by 146.05 times. SBI Capital Markets and Dam Capital Advisors Ltd served as book running lead managers, with Kfin Technologies acting as the IPO registrar. Promoters include Arun Gupta, Anita Gupta, Pranav Bansal, and Arun Kumar Gupta HUF.
Bansal Wire Industries shares debuted impressively on the NSE, opening at Rs 356, a 39% premium over the Rs 256 issue price on July 10, following a successful IPO consisting solely of a fresh issue of 2.91 crore shares. The IPO, with a price band of Rs 243 to Rs 256 per share, opened for bidding on July 3 and closed on July 5. The Rs 745-crore public offer received bids for over 67 crore equity shares, oversubscribing the offer size of 2.14 crore shares by 31.25 times.
Qualified institutional buyers (QIBs) oversubscribed their allotted portion by more than 55 times, with non-institutional investors bidding 44.60 times their quota, and retail investors subscribing 11.76 times their reserved portion.
Management and Operational Segments
SBI Capital Markets Limited and Dam Capital Advisors Ltd (formerly IDFC Securities Ltd) were the book-running lead managers, with Kfin Technologies Limited serving as the registrar for the IPO. Bansal Wire, a leading stainless steel wire manufacturer, serves various sectors such as automotive, general engineering, infrastructure, hardware, consumer durables, power and transmission, agriculture, and auto replacement, marketing its products under the brand “BANSAL.”
Bansal Wire operates in three key segments: high carbon steel wire, mild steel wire (low carbon steel), and stainless steel wire.
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