Bansal Wire IPO: Issue subscribed 1.76 times on Day 1; retail investors frontrunners

A day before the public issue opened for subscription, Bansal Wire raised Rs 223.5 crore from anchor investors

Bansal Wire Industries' initial public offer received a strong response, being fully subscribed on just the first day of bidding on July 3, led by retail investors. The company's Rs 745-crore public offer received bids for over 3.78 crore equity shares, which was 1.76 times the offer size of 2.14 crore equity shares, the subscription data on the exchanges showed.

The company's public offer, opened for subscription today with a price band at Rs 243-256 per share, with bidding set to close on July 5.

Retail investors took the lead amongst all kinds of investors, bidding 2.47 times the allotted quota, while non-institutional investors picked up 2.44 times the reserved portion. The portion set aside for qualified institutional buyers (QIBs) was subscribed 0.01 times.

A day before the public issue opened for subscription, 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.

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Additionally, 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 the anchor book.

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

Of the net fresh issue proceeds, Rs 546.4 crore will be utilised for repaying debts of the company and its subsidiary. Furthermore, Rs 60 crore will be allocated for working capital requirements, with the remaining funds set aside for general corporate purposes.

Master Capital Services highlighted that the company will become virtually debt free post this transaction and are currently operating at 80 percent utilisation on most of its facilities, indicating they have some room to grow. In addition, the firm believes the IPO is valued fairly as compared to its listed peers in India and hence, recommend investors to subscribe to this issue for listing gains.

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