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Bansal Wire IPO Day 1: Check subscription status, GMP and other details. Should you apply or not?

Bansal Wire Industries IPO witnessed strong buying interest from retail and non-institutional investors, leading to full subscription of the ₹745 crore initial public offering on the first day of subscription. The IPO, consisting of a fresh issue of 2.91 crore shares, opened on July 3 and will close on July 5, 2024.

Bansal Wire Industries, along with its Subsidiary, Bansal Steel & Power Limited, offers a wide range of products in high-carbon steel wire, mild steel wire, and stainless steel wire segments. The company has four manufacturing facilities in the National Capital Region and a dealer distribution network spanning 22 states and six union territories.

The company raised over ₹223 crore in the anchor book round, allocating equity shares to anchor investors at ₹256 per share. The net proceeds from the IPO will be used to pay outstanding borrowings, fund working capital requirements, and for general corporate purposes.

On the financial front, Bansal Wire Industries has shown growth in total income, EBITDA, and PAT from FY22 to FY24. The IPO saw healthy subscription levels with the retail segment oversubscribed by 2.47 times and the non-institutional segment by 2.44 times. The issue is entirely a fresh offer with a price band of ₹243 to ₹256 per share.

Experts believe the IPO is fairly valued, and investors can consider subscribing for the medium to long term. The company’s plans for expansion, strong customer diversification, and the growth potential in the steel sector in India are positive indicators for future growth. Brokerage firms recommend subscribing to the issue for both listing gains and long-term investment opportunities.

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