Bansal Wire Industries' initial public offer (IPO) saw a robust response, fully subscribing on the second day of bidding on July 4, primarily driven by non-institutional investors (NIIs). The company's Rs 745-crore public offer received bids for over 9 crore equity shares, surpassing the offer size of 2.14 crore equity shares by 2.57 times, as per exchange data.
The public offer, priced between Rs 243-256 per share, remains open for subscription until July 5.
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NIIs led the charge, bidding 7.94 times their allotted quota, while retail investors subscribed to 5.17 times their reserved portion. The portion earmarked for qualified institutional buyers (QIBs) was subscribed 0.04 times.
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Ahead of the public issue, Bansal Wire raised Rs 223.5 crore from anchor investors, including 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.
Additionally, investments came from Motilal Oswal Mutual Fund, Carmignac Portfolio, Tata Mutual Fund, DSP India, Malabar Midcap Fund, and Think India Opportunities Master Fund via the anchor book.
The IPO consists solely of a fresh issue, ensuring all proceeds (excluding IPO expenses) will benefit the company directly.
Of the net fresh issue proceeds, Rs 546.4 crore will go towards repaying the debts of the company and its subsidiary, with Rs 60 crore allocated for working capital requirements. The remainder will be used for general corporate purposes.
Master Capital Services noted that post-IPO, the company will achieve a nearly debt-free status and is operating at 80 percent capacity on most facilities, indicating growth potential. They also endorsed the IPO as fairly valued compared to its Indian peers, recommending investors consider subscribing for potential listing gains.
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