Bansal Wire IPO Open For Subscription : Bansal Wire Industries Limited IPO has opened for subscription today on 3 July, in which subscription can be done till 5 July. The size of the company’s IPO is Rs 745 crore. While the price band for this has been fixed at Rs 243-256 per share (Bansal Wire IPO Price Band). The minimum lot size is 58 shares. The minimum investment amount for retail investors is Rs 14,848. The brokerage house has advised to subscribe to this IPO for a long period.
CY 2024: These 30 stocks proved to be multibaggers in the first half of the year, 100 to 7288% return in 6 months
Should you subscribe Bansal Wire?
Brokerage house Anand Rathi has given a long term subscribe rating to the IPO of Bansal Wire Industries Limited. The brokerage says that Bansal Wire Industries Limited has achieved a revenue of Rs 2466 crore in FY24, strengthening its strong market position and brand value. Serving more than 5000 customers in various industrial sectors, the company is demonstrating strong market presence. With a price-to-earnings (P/E) ratio of 50.8 times based on FY24 earnings, Bansal Wire Industries Limited claims a market capitalization of Rs 4007.8 crore after the issuance of equity shares, which is equivalent to a market capitalization-to-sales ratio of 1.62 times FY24 earnings.
The company and its subsidiary, Bansal Steel & Power Limited, offer a comprehensive portfolio of steel wire products with a total of over 3000 SKUs across high carbon steel, mild steel (low carbon) and stainless-steel wires. Bansal Wire Industries Limited itself offers around 2000 SKUs, while its subsidiary contributes around 1500 SKUs.
Latest list of brokerage house, these stocks with strong fundamentals can fill your pocket
Risks and positive factors with the company
Brokerage house SBI Securities has mentioned some risk factors associated with the company.
• Disruption in the supply of raw materials
• Volatility in raw material costs
• Slowdown in steel wire market
• Changes in arrangements with global representatives
Brokerage house SBI Securities has pointed out some positive factors associated with the company.
• The company is expanding its customer base
• The company is focused on increasing exports
• The company is focusing on expanding in the retail sector
• Improved margin profile by focusing on high-margin products
Liquor company made money on listing, Allied Blenders debuted in the market at 13% premium
About IPO
The size of Bansal Wire’s IPO is Rs 745 crore (Bansal Wire IPO Size). There is no OFS in this IPO. It is a book built issue. This is a completely fresh issue of 2.91 crore shares. The company will use the money raised from the IPO to repay some of its debt, working capital requirements and other general corporate purposes. The allotment of shares will take place on July 8 and its listing may take place in the stock market on July 10.
How much reserve for whom
About 50 per cent of Bansal Wire’s IPO is reserved for qualified institutional buyers (QIBs). Whereas 35 per cent of the IPO is reserved for retail investors. While 15 per cent is reserved for non-institutional investors (NIIs).
Opportunity to earn 20 thousand profit in 1 month by investing 1 lakh, these 4 stocks can give 20% return
How are the company’s financials
Bansal Wire Industries Limited’s revenue grew by 1.99 per cent and profit grew by 31.48 per cent between the financial years ending March 31, 2024 and March 31, 2023. The revenue for the period ended March 31, 2024 was Rs 2470.89 crore and profit was Rs 78.80 crore.
About the Company
Bansal Wire is the largest stainless steel wire manufacturing company in India and the second largest steel wire manufacturing company by volume. The company operates in three main segments – High Carbon Steel Wire, Low Carbon Steel Wire (Mild Steel Wire) and Stainless Steel Wire. The company manufactures over 3000 different types of steel wire products ranging in size from very thin to very thick. It exports products to over 50 countries and has a strong position in the global market.
(Disclaimer: Investing or selling stocks is advised by the brokerage house. These are not the personal views of Financial Express. There are risks in the market, so take expert advice before investing.)