Timeline

IPO Open Date:	July 3, 2024
IPO Close Date:	July 5, 2024
Basis of Allotment:	July 8, 2024
Refunds:	July 9, 2024
Credit to Demat Account:	July 9, 2024
IPO Listing Date:	July 10, 2024

About Company

Operations:

• Bansal Wire manufactures a wide variety of steel wire products across three main segments:
• High Carbon Steel Wire: Used for springs, fasteners, and other high-strength applications.
• Low Carbon Steel Wire (Mild Steel Wire): Used for construction, wire mesh, and general purpose applications.
• Stainless Steel Wire: Used for corrosion-resistant applications in various industries like automotive, construction, and appliances.

Products:

• Bansal Wire currently operates four manufacturing facilities across India.
• They are setting up a new, large-scale manufacturing facility in Dadri, India, which is expected to be one of the largest single-location wire manufacturing facilities in Asia upon completion. This expansion signifies their ambition for growth.
• They have a well-established distribution network to cater to their customer base across the country.

Market Position:

• Bansal Wire is a leading player in the Indian steel wire industry.
• They hold the top spot in stainless steel wire manufacturing and rank number two overall in the steel wire industry (based on unspecified sources).
• Their long-standing presence and diversified product portfolio indicate a strong foothold in the market.

Future Outlook:

• The company aims to capitalize on the growth potential of the Indian wire industry, driven by sectors like construction, infrastructure, and power.
• Their new manufacturing facility signifies their commitment to expanding capacity and catering to the rising demand.
• They might explore new markets or product segments for further growth.

Here are some resources to learn more about Bansal Wire Industries Limited:

• Company Website: https://bansalwire.com/ (information might be limited before the IPO)
• IPO Prospectus: A detailed analysis of the company can be done once the IPO prospectus is available. This document will provide insights into their financials, future plans, and risk factors.

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Objective

• Repayment or prepayment of all or a portion of certain outstanding borrowings availed by our Company and our Subsidiary;
• Funding the working capital requirements of the company and
• General corporate purposes.

POSITIVE

• Industry Growth Potential: The Indian wire industry is expected to benefit from growth in sectors like construction, infrastructure, and power, potentially increasing demand for Bansal Wire’s products.
• Established Player: With over 20 years of experience, Bansal Wire has established brand recognition and customer relationships, potentially offering a competitive edge.
• Debt Reduction: The fresh issue proceeds are planned for debt reduction, potentially improving their financial health and reducing interest burden.

NEGATIVE

• Competitive Market: The Indian wire industry is highly fragmented with established players and smaller regional competitors vying for market share. Bansal Wire will need a strong strategy to stand out.
• Raw Material Price Fluctuations: Prices of key raw materials like steel can fluctuate significantly, impacting Bansal Wire’s production costs and profitability.
• Limited Track Record of Profitability: While operational for a long time, available financial information suggests relatively low profitability margins. A closer look is necessary.

So,how does Bansal Wire IPO Fare in Terms of Financials ?

Financial Details

Period Ended	31 Mar 2024	31 Mar 2023	31 Mar 2022
Assets	1,264.01	749.05	695.48
Revenue	2,470.89	2,422.57	2,205.07
Profit After Tax	78.80	59.93	57.29
Net Worth	422.37	282.51	223.01
Reserves and Surplus	358.64	273.41	213.91
Total Borrowing	681.14	422.19	413.15
Amount in ₹ Crore

FINANCIAL REVIEW

Positives:

• Revenue Growth: There seems to be a slight increase in revenue year-over-year (YoY) between 2022 and 2024.
• Profitability: Profit After Tax (PAT) also shows a YoY increase, indicating the company might be managing its expenses effectively.

Bansal Wire IPO Review & Details IPO Valuation :

Earning Per Share (EPS):	₹ 6.18 per Equity Share
Price/Earning P/E Ratio:	41.41
Return on Net Worth (RoNW):	18.27%
Net Asset Value (NAV):	₹ per Equity Share

Bansal Wire IPO – SWOT Analysis

Strengths

• Established brand and customer base
• Diversified product portfolio across various wire segments
• Experienced management team

Weaknesses

• Limited track record of high profitability
• Dependence on volatile raw material prices
• Competitive landscape

Opportunities

• Growth potential in the Indian wire industry
• Expansion into new markets or product segments
• Technological advancements for efficient production

Threats

• Economic slowdown impacting demand for wires
• Stringent government regulations affecting production costs
• Competition from established and new players

COMPETITIVE ANALYSIS: MARKET PEERS

Here are some of the key market peers of Bansal Wire IPO :

Peers:

• Rajratan Global Wire Ltd.
• Bedmutha Industries Ltd.

Bansal Wire IPOGMP

• Grey market premium as on DD-MM-YYYY = Rs / Share

Disclaimer:

• IPO Grey Market Premium (Bansal Wire IPO GMP) mention is valid for the specific date as mentioned in the header.
• We are not buying and selling IPO forms on IPO Grey Market.
• Don’t decide to subscribe to an IPO just based on the initial price, as it can change before the listing.Subscribe only considering Fundamentals of the companies.

Bansal Wire IPO

🔴 Live Subscription Status 🔴

05/07/2024 5:00 PM

	NO OF SHARES OFFERED	Day 1	Day 2	Day 3
Qualified Institutional Buyers(QIBs)	61,31,687	0.00	0.09	146.05
Non Institutional Investors(NIIs)	45,98,766	1.29	12.16	51.46
Retail Individual Investors(RIIs)	1,07,30,453	1.78	6.18	13.64
Total	2,14,60,906	1.17	5.72	59.57

FINAL TAKEAWAY

✅ May Apply

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