Emcure vs. Bansal Wire IPOs Close Today: Experts Weigh In on Which One to Buy

The stock market is buzzing with excitement as new IPOs (Initial Public Offerings) keep coming every month. Two main IPOs, Emcure Pharmaceuticals and Bansal Wire Industries, are closing today after strong interest from both retail and non-institutional investors, with both being fully booked by the second day of bidding.

Bansal Wire Industries IPO

Bansal Wire Industries is offering new shares worth ₹745 crore without any offer-for-sale (OFS). The price per share ranges from ₹243 to ₹256. The money from this IPO will be used to pay off debt, cover normal business expenses, and meet working capital needs. Bansal Wire makes and exports steel wire, including stainless steel wire, mild steel wire (low carbon steel wire), and high carbon steel wire. As of the second day of bidding, the Bansal Wire IPO was subscribed 5.73 times.

Emcure Pharmaceuticals IPO

Emcure Pharmaceuticals’ IPO includes new shares worth ₹800 crore and an OFS by the promoters and current shareholders, totaling 1.14 crore shares valued at ₹1,152 crore at the upper price range. Overall, this makes the public issue worth ₹1,952 crore. Shares in the OFS are being sold by investor and promoter Satish Mehta and BC Investments IV Ltd., part of Bain Capital. The proceeds from the new shares will be used to pay off debt and for regular business activities. The price range for Emcure’s IPO is ₹960 to ₹1,008 per share. By the second day of bidding, it was subscribed 4.98 times.

Expert Opinions

Arun Kejriwal, Founder of Kejriwal Research and Investment Services:

Kejriwal mentioned that Emcure’s IPO is much larger than Bansal’s, giving investors a better chance of getting shares in Emcure. He noted that the pharmaceutical industry is stable and well-tested. Bansal Wire is undergoing expansion, which will benefit the company in about 6 to 8 months. There might be short-term gains from both IPOs, but Kejriwal suggested holding Bansal Wire for a year after the initial excitement dies down. He also pointed out that because Emcure’s IPO is large (around ₹2,000 crore), it might be easier to get shares in it right now.

Prashanth Tapse, Research Analyst, Senior Vice President of Research at Mehta Equities:

Tapse believes that both IPOs offer good value for new investors, with potential gains from listing. Both companies have solid growth prospects and are using the IPO proceeds to reduce debt, which should improve their financial health and profits.