Bansal Wire IPO Nearly 4 Times Subscribed on Day 2: Check GMP and Key Details

The Bansal Wire IPO was subscribed almost 4 times by the second day, driven by strong interest from non-institutional and retail investors. Non-institutional investors subscribed 6.9 times, and retail investors subscribed 4.7 times.

The IPO follows a book-building process, with 50% reserved for qualified institutional buyers, 35% for retail investors, and 15% for non-institutional investors. The funds will be used for debt repayment, working capital, and other corporate purposes.

Bansal Wire GMP

In the grey market, Bansal Wire shares are trading at a premium of ₹65, the same as on Wednesday.

Bansal Wire IPO Review

Bansal Wire, a steel wire product manufacturer, serves over 5,000 customers with more than 3,000 different products. Analysts note the company’s consistent revenue and profitability growth but highlight risks from volatile raw material costs.

“The IPO is priced at a P/E ratio of 41.41x, which is on the higher end. We recommend this IPO only for investors with a high-risk appetite,” said Swastika Investmart.

Bansal Wire IPO Price Band

The issue is priced between ₹243 and ₹256 per share. At the upper end, the company aims to raise about ₹745 crore. Investors can bid for a minimum of 58 shares and in multiples thereafter.

Other Details

Bansal Wire is India’s largest stainless steel wire manufacturer and the second largest steel wire manufacturer by volume, producing 72,176 MTPA and 206,466 MTPA, respectively, in FY23. The company caters to sectors like automotive, engineering, infrastructure, and more, with a strategy to avoid over-reliance on any single customer or sector.

The company’s total income grew at a CAGR of 28% from ₹1,480 crore in FY21 to ₹2,422 crore in FY23. EBITDA increased by 16% to ₹115 crore, and PAT grew by 21.6% to ₹59.9 crore.

SBI Capital Markets and DAM Capital are the lead managers for the IPO.