MC Exclusive: Bansal Wire’s IPO anchor book includes HDFC Mutual Fund, SBI MF, East Spring Investments among others

The IPO price band has been fixed in the range of Rs 243 to 256 per equity share of the face value of Rs 5.

Bansal Wires' IPO anchor book includes HDFC Mutual Fund, SBI Mutual Fund, East Spring Investments, HSBC Halbis Partners, SBI Life Insurance, Tata Mutual Fund, Bandhan Mutual Fund, Motilal Mutual Fund, and DSP Mutual Fund, said sources close to Moneycontrol.

The initial public offer (IPO) of Bansal Wires will open for subscription on July 3 and close on July 5. Through the public offer, the company plans to raise around Rs 745 crore through a complete fresh issue with no offer-for-sale (OFS) component. The bidding for anchor investors will open on July 2.

The IPO price band has been fixed in the range of Rs 243 to 256 per equity share with a face value of Rs 5. Bansal Wire Industries manufactures and exports steel wires, operating in three broad segments: high carbon steel wire, mild steel wire (low carbon steel wire), and stainless steel wire.

The market valuation of the company basis the cap price is approximately Rs 4,000 crore.

The capital raised will be utilised for debt repayment, supporting working capital requirements, and general corporate purposes. Additionally, the company plans to add a new segment of specialty wires through its upcoming plant in Dadri, which will help it grow and expand its market presence in the upcoming fiscal years.

The price-to-earnings ratio based on basic and diluted EPS for fiscal 2024 for the company is 39.32 times at the floor price and 41.42 times at the cap price, compared to the average industry peer group P/E ratio of 32.72 times. Bids can be made for a minimum of 58 equity shares and in multiples of 58 equity shares thereafter.

According to the Red Herring Prospectus (RHP), the company's listed peers are Rajratan Global Wire Ltd (with a P/E of 41.68), DP Wires Ltd (with a P/E of 18.94), and Bedmutha Industries Ltd (with a P/E of 37.52). About 50% of the issue size has been set aside for qualified institutional investors (QIBs), 35 percent for retail investors, and 15 percent for non-institutional investors.

SBI Capital Markets and DAM Capital Advisors are the book-running lead managers for the issue. The allotment for the Bansal Wires IPO is expected to be finalized on July 8, 2024, with the stock listed on BSE and NSE on July 10, 2024.

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