Bansal Wire Industries IPO to open on July 3, to raise Rs 745 crore via fresh issue

Bansal Wire Industries IPO

Bansal Wire Industries has decided to hit Dalal Street with its Rs 745-crore initial public offering on July 3. It will announce IPO price band on June 28.

This will be the second public issue, opening in July, after Emcure Pharmaceuticals.

The IPO comprising only of a fresh issue by the Delhi-based company, with no offer-for-sale component, will close on July 5, while the anchor book will be opened for a day on July 2.

The company that makes steel wires operates business through its four established manufacturing facilities in the National Capital Region, India, with three facilities in Ghaziabad (UP) and one facility in Bahadurgarh (Haryana).

It operates in three broad segments, i.e., high carbon steel wire, mild steel wire (low carbon steel wire) and stainless steel wire, which contributed 22.14 percent, 8.21 percent and 51.92 percent to revenue from operations in FY24, respectively. It will also be adding new segment of specialty wires through the plant in Dadri.

Bansal Wire Industries will spend Rs 452.7 crore out of the net fresh issue proceeds for repaying its own debt, Rs 93.7 crore for repaying the subsidiary's debt, and Rs 60 crore for working capital requirements. The remaining fresh issue money will be used for general corporate purposes.

The company has reserved half of the offer size for the qualified institutional buyers, 15 percent for non-institutional investors (high networth individuals) and the remaining 35 percent for retail investors.

SBI Capital Markets, and DAM Capital Advisors are the book running lead managers to the issue.