₹ 14848 / 58 shares
IPO Details
RHP/DRHPIssue Date
03 Jul - 5 Jul'24
Investment/lot
₹ 14848
Price Range
243 - 256
Lot Size
58
IPO Size
₹ 745.00 Cr
IPO Listing Details
Listing On
10 Jul'24
Issue Price
256
Listed Price
₹ 356
Retail Gain/Listing Gain
â–²39.06%
IPO Timeline
Bansal Wire Industries IPO Review | Product portfolio, issue details, financials | Must Watch
Kotak Securities
•2m 52s
Bansal Wire Industries Company Background
Bansal Wire Industries along with its subsidiary, Bansal Steel & Power Limited, manufactures over 3000 SKUs in three broad segments - high carbon steel wire, mild steel wire (low carbon steel wire) and stainless steel wire.
High-carbon steel wires are strong and durable and are used in springs and cutting tools. Mild steel wires are ductile and versatile and used in power transmission, agriculture, and construction. Stainless steel wires, which are made from corrosion-resistant alloys, are used in consumer goods, automotive, and general engineering.
With that, let's take a look at the competitive strengths and risk factors for Bansal Wire Industries Limited:
Bansal Wire Industries Competitive Strengths
More than 5,000 customer base with a presence across various sectors
The company has a diverse customer base of over 5,000 across various industrial sectors. In Fiscal 2024, Bansal High Carbons Private Limited contributed 7.30% and S. S. Pranav Steels Private Limited 6.05% of total sales. No other customer contributed more than 5.00% of sales, and no sector exceeded 25% of sales in FY24, FY23, and FY22. Major sectors served include automotive, cables, fencing, infrastructure, and agriculture, with the automotive and consumer durables sectors providing the highest EBITDA margins.
Business model with a stable and consistent margin profile
The company's products are offered at various price points, with direct sales mitigating pricing risk. Prices are set considering landing costs, discounts, and taxes, and are adjusted monthly to manage raw material cost volatility. Production is primarily order-based at pre-agreed prices, maintaining margins and a cost-plus model. This approach has kept EBITDA margins between 4.73% and 6.04% over the past three fiscals.
Economies of scale
Over the last 38 years, the company has established a well-integrated ecosystem for manufacturing products, and for the storage and transportation of raw materials and finished goods.
Risk Factors
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The company relies on their top 10 suppliers for raw materials and work-in-progress goods used in the manufacturing processes.
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Any disruption, breakdown or shutdown of their manufacturing facilities may have a material adverse effect on the business.
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Their manufacturing facilities and registered office are located on leasehold lands and rental basis. If they are unable to renew existing leases or relocate operations on commercially reasonable terms, there may be a material adverse effect on the business.
Key Strategies
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Expansion of the customer base in North India and increase penetration in other geographies.
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Increasing export sales and growing sectors like automotive and infrastructure.
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Entering into the B2C segment of steel products and establishing a retail distribution network.
Bansal Wire Industries Limited Key Financials
Here are the key financials for Bansal Wire Industries Limited:
Particulars (in Rs. million)
Particulars (in Rs. million)
How to apply for IPO through ASBA
Kotak Securities
•04m 01s
How to apply for an IPO using UPI
Kotak Securities
•01m 19s
Opening of account will not guarantee allotment of shares in IPO. Investors are requested to do their own due diligence before investing in any IPO.
How To Apply for Bansal Wire Industries Ltd IPO?
Here are the steps to apply for Bansal Wire Industries Ltd IPO:
Step 1: Log in to your Kotak Securities Demat account Log in to your Demat account to access IPO investments. Next, select the current IPO section.
Step 2: Specify IPO details Enter the number of lots and the price you wish to apply for.
Step 3: Enter UPI ID After entering your UPI ID, click submit. This will place your bid with the exchange.
Step 4: Mandate Notification Your UPI app will receive a mandate notification to block funds.
Step 5: Approve Request Your funds will be blocked once you approve the mandate request on your UPI.
Bansal Wire IPO FAQs
When is Bansal Wire IPO listing date?
Bansal Wire IPO will list on 2024-07-10.
What is the issue size of Bansal Wire IPO?
745.00 is the issue size of Bansal Wire IPO.
What is the minimum lot size required for Bansal Wire IPO?
The minimum lot size is 58 shares and the investment required is ₹14848.
What is the price band of the Bansal Wire IPO?
The price band of Bansal Wire IPO is ₹243 to ₹256.
Where can I read more about Bansal Wire business?
You can read more about Bansal Wire and its IPO from the company’s red herring prospectus (RHP) here.
What is the Bansal Wire Industries Limited IPO?
The Bansal Wire Industries Limited IPO has an issue size of Rs. 745 crores. The IPO opens for subscription on 3rd July 2024 and closes on 5th July 2024
Who is the Registrar for Bansal Wire Industries Limited IPO?
KFin Technologies Limited is the registrar for this IPO.
