The initial public offering (IPO) of Bansal Wire Industries is set to open for subscription tomorrow, Wednesday, 3rd July 2024. Here’s what you need to know about this IPO:
About the Company
Bansal Wire Industries, along with its subsidiary Bansal Steel & Power Ltd, offers over 3,000 different products, or SKUs. They specialise in high carbon steel wire, mild steel wire (low carbon steel wire), and stainless steel wire. The parent company contributes around 2,000 SKUs, while the subsidiary provides about 1,500, with around 500 SKUs being common to both.
The company sells its products under the “BANSAL” brand, which is well-known and trusted in the market. This strong brand reputation has helped them maintain a high customer retention rate of over 64% in the fiscal years 2024, 2023, and 2022.
IPO Schedule and Price Band
- Opening Date: The IPO opens for subscription on Wednesday, 3rd July 2024.
- Closing Date: The IPO will close on Friday, 5th July 2024.
- Price Band: The price band is set between ₹243 and ₹256 per share.
Lot Size and Allocation
- Lot Size: Investors need to buy a minimum of 58 shares, and then in multiples of 58 shares.
- Anchor Investors: Allocation for anchor investors is scheduled for today, Tuesday, 2nd July 2024.
IPO Size and Purpose
- Total Issue: The IPO is a fresh issue of 29,101,562 equity shares, worth ₹745 crore. There is no offer for sale (OFS) component.
- Purpose: The funds raised will support the company’s ongoing business activities and new projects.
Listing and Allotment
- Allotment Date: The basis for share allocation is expected to be finalised on Monday, 8th July 2024.
- Refunds: Refunds for unsuccessful applicants will start on Tuesday, 9th July 2024.
- Demat Credit: Shares will be credited to successful applicants’ demat accounts on Tuesday, 9th July 2024.
- Listing Date: Shares are likely to be listed on BSE and NSE on Wednesday, 10th July 2024.
IPO Reservation
- Non-Institutional Investors (NII): 15% of the shares are reserved.
- Qualified Institutional Buyers (QIB): 50% of the shares are reserved.
- Retail Investors: At least 35% of the shares are reserved.
Lead Managers and Registrar
- Lead Managers: SBI Capital Markets Limited and Dam Capital Advisors Ltd.
- Registrar: Kfin Technologies Limited.
Grey Market Premium (GMP)
- Current GMP: The grey market premium for Bansal Wire Industries IPO today is +₹65. This indicates that shares are trading at a ₹65 premium in the grey market.
- Expected Listing Price: Considering the upper end of the price band and the grey market premium, the shares are expected to list at ₹321 per share, which is 25.39% higher than the IPO price of ₹256.
The grey market premium suggests that investors are willing to pay more than the issue price, reflecting positive sentiment ahead of the listing.
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