Bansal Wire IPO opens on July 03; check price band, GMP, should you bid? | News on Markets

Bansal Wire IPO: Bansal Wire, a steel wire manufacturer, is launching an Initial Public Offering (IPO) worth Rs 745 crore, consisting of a fresh issue of 29.1 million shares. The subscription period for the IPO opens on July 03, 2024, and closes on July 05, 2024.

The price band for the Bansal Wire IPO is set between Rs 243 to Rs 256 per share, with a minimum lot size of 58 shares for applications. The proceeds from the IPO will be used for repaying outstanding borrowings, meeting working capital requirements, and general corporate purposes.

Established in December 1985, Bansal Wire Industries Limited specializes in manufacturing stainless steel wire across three segments. With a customer base of over 5,000, the company prioritizes diversification to mitigate risks and employs a flexible pricing strategy.

Bansal Wire operates manufacturing facilities in Ghaziabad and Haryana. The IPO allotment is expected to be finalized on July 8, 2024, with a listing date set for July 10, 2024, on BSE and NSE.

The Grey Market Premium (GMP) for Bansal Wire is Rs 65, indicating a listing gain of 25.4%. SBI Capital Markets Limited and Dam Capital Advisors Ltd are the lead managers for the IPO, with KFin Technologies Limited as the registrar.

Between March 31, 2023, and March 31, 2024, Bansal Wire reported a 1.99% increase in revenue and a 31.48% rise in profit after tax. Analysts recommend subscribing to the IPO for long-term growth prospects in the steel wire manufacturing sector, citing the company’s strong market position and brand reputation.