New Delhi: Steel wire manufacturer Bansal Wire Industries announced on Tuesday that it has raised over Rs 223 crore from anchor investors before its initial public offering (IPO). According to a circular on BSE’s website, the investors include SBI Mutual Fund (MF), HDFC MF, Kotak Mahindra MF, Tata Capital MF, Edelweiss MF, Bandhan MF, and SBI Life Insurance Company.
The company has allocated 87.30 lakh shares to 18 funds at Rs 256 each, the highest end of the price range. This totals Rs 223.5 crore.
The IPO is entirely a fresh issue of equity shares worth Rs 745 crore, with no shares being sold by existing shareholders.
The issue, priced between Rs 243 and Rs 256 per share, will be open for public subscription from July 3-5.
Funds from the IPO will be used to pay off debt, support working capital needs, and for general corporate purposes. Bansal Wire Industries manufactures and exports steel wires in three segments: high carbon steel wire, mild steel wire (low carbon steel wire), and stainless steel wire. The company also plans to start producing specialty wires at a new plant in Dadri, aiming to grow its market presence in the next fiscal year.
The company’s total income grew at an annual rate of 28% to Rs 2,422.56 crore in FY23 from Rs 1,480.41 crore in FY21. Profit after tax (PAT) increased at an annual rate of 21.7% to Rs 59.93 crore in FY23 from Rs 40.46 crore in FY21.
Half of the IPO is reserved for qualified institutional investors (QIBs), 35% for retail investors, and the remaining 15% for non-institutional investors.
Investors can bid for a minimum of 58 shares and in multiples of 58 thereafter.
SBI Capital Markets and DAM Capital Advisors are the lead managers for the IPO.
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