Bansal Wires IPO Makes Stellar Debut; Lists With 39% Premium
On the financial front, the issue is fairly valued. Hence, it is advised to ‘hold’ the shares from a medium to long-term perspective, says expert
The initial public offering (IPO) of Bansal Wire Industries made a stellar listing on the bourses with 39 per cent premium on the National Stock Exchange. The issue listed at Rs 356 against its issue price of Rs 256.
The IPO consisted exclusively of fresh issues of up to Rs 745 with a price band of Rs 243 to 256.
During the subscription phase, the issue received robust responses from qualified institutions with the subscription more than 150 times.
However, the retail subscription remained muted with only 14.37 times, while the overall issue was subscribed 62.76 times.
Analysts Advice
“To follow up with the growing trends, the company plans to set up a new manufacturing unit, the largest steel wire manufacturing plant in India. The company also aims to expand its reach to other regions, i.e. south and east, to garner additional market share. On the financial front, the issue is fairly valued. Hence, we advise the market participants to ‘hold’ the shares from a medium to long-term perspective,” said Parth Shah, Research Analyst, StoxBox.
IPO Objectives
The proceeds of Rs 800 crore from the fresh issue will be utilised for prepayment or scheduled repayment of a portion of certain outstanding borrowings availed by the company and its subsidiary. Funds will also be used towards general corporate purposes.
Additionally, the firm will also get benefits on listing in the public market which will enhance the brand’s visibility and provide liquidity to the shareholders.
Firm’s Financials
The firm registered revenue of Rs 2,470 crore in FY24, compared to Rs 2,422 crore in FY23.
The firm’s profit after tax (PAT) increased to Rs 78.80 crore in FY23 compared to Rs 59.93 crore in FY22.
Overall, revenue increased merely by around 2 per cent, whereas PAT rose by 31.48 per cent.
