Bansal Wire Industries mobilises over Rs 223 crore via anchor book, IPO opens on July 3

Bansal Wire Industries IPO

Bansal Wire Industries, a stainless steel wire manufacturing company, has raised Rs 223.5 crore through anchor investors on July 2. This was a day before the issue opening.

The Rs 745-crore initial public offering of the company will open for subscription on July 3, with a price band at Rs 243-256 per share, and the bidding will close on July 5.

The company informed exchanges on Tuesday that it has finalised allocation of 87,30,468 equity shares to anchor investors at a price of Rs 256 per equity share.

SBI Mutual Fund, HDFC Mutual Fund, Kotak Mahindra Mutual Fund, Eastspring Investments, Optimix Wholesale Global Emerging Markets Share Trust, HSBC Mutual Fund and Edelweiss Trusteeship participated in the anchor book launched by the company for a day on Tuesday.

In addition, Motilal Oswal Mutual Fund, Carmignac Portfolio, Tata Mutual Fund, DSP India, Malabar Midcap Fund, and Think India Opportunities Master Fund also invested in the company via anchor book.

The Delhi-based company's IPO comprises solely a fresh issue with no offer-for-sale component. Hence, the issue proceeds, excluding IPO expenses, will be received by company.

The Rs 546.4 crore out of the net fresh issue proceeds will be utilised for repaying debts of the company and its subsidiary. Further, Rs 60 crore will be spent for working capital requirements and the remainder funds will be set aside for general corporate purposes.

Bansal Wire Industries operates its business (of high carbon steel wire, low carbon steel wire, and stainless steel wire) through four manufacturing facilities in the National Capital Region, India, with three facilities in Ghaziabad (UP) and one facility in Bahadurgarh (Haryana).

SBI Capital Markets, and DAM Capital Advisors are the merchant bankers to the issue.