Bansal Wire Industries is poised for a stellar listing on July 10 after receiving robust demand from market participants across all categories. The IPO was subscribed an impressive 59.57 times, reflecting strong investor confidence in the company. With an issue price set at Rs 256 per share, the stock is expected to debut at a premium of approximately 30 percent, potentially listing around Rs 330-340 per share.
Diversified Product Portfolio and Strong Market Demand
Bansal Wire, incorporated in 1985, is a major player in the stainless steel wire manufacturing sector. The company and its subsidiary Bansal Steel & Power Ltd (BSPL) operate across three primary segments - high carbon steel wire, mild steel wire, and stainless steel wire. The company has strategically diversified its product portfolio and customer base to mitigate revenue risks and serve various sectors effectively. Major end-user industries, including automotive, construction, power, and agriculture, drive the demand for wires, with infrastructure leading the way.
Also Read | Bansal Wire IPO subscribed 31x on final day as QIBs rush in
The increasing consumption of steel in infrastructure, automotive, and housing sectors, fueled by positive domestic economic trends, positions steel manufacturers like Bansal Wire Industries to benefit directly from this growth, said Parth Shah, Research Analyst at StoxBox.
Financial Outlook
Bansal Wire has shown consistent topline growth over the past decade. The revenue has grown at a compound annual growth rate (CAGR) of 18 percent. Despite operating margins expected to remain around 6-7 percent, the repayment of outstanding borrowings from the IPO proceeds is anticipated to boost the bottom line significantly, said Prashanth Tapse, Research Analyst at Mehta Equities.
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Amit Goel, Co-Founder & Chief Global Strategist at Pace 360, recommends that investors allotted shares should hold them from a medium to long-term perspective, given the company’s growth prospects and strategic initiatives.
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