Fueling Industrial Success: Bansal Wire Hits IPO Bansal Wire Industries Limited has announced its initial public offering of equity shares, which shall open on 3 July 2024.
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Bansal Wire Industries Limited has announced its initial public offering of equity shares, which shall open on 3 July 2024.
The company, incorporated in 1985 gave the announcement after strong performance in both the domestic and international markets over the years. The company claims to be the second largest steel wire manufacturing company by volume after TATA Steel in India with production numbers of 206,466 Million Tons Per Annum (MTPA), which amounted to 5% of the market share.
Bansal Wire caters to a wide range of sectors such as automotive, general engineering, infrastructure, hardware, consumer durables, power transmission, agriculture, and auto replacement.
The size of the total issue aggregates up to INR 7450 Million worth of equity shares with a face value of INR 5 each. The company also announced recently in an event that the 'Anchor Investor' bidding date is on the 2nd of July, while bids open the next day and close on the 5th of July, Friday.
The price band of the Issue has been fixed at INR 243-256 per equity share and investors are allowed to bid for a minimum of 58 Equity Shares and in multiples of 58 equity shares thereafter.
Bansal Wire shared in a press release that it intends to utilize net proceeds from the fresh issue of equity shares in repayment and prepayment of the entirety or portions of outstanding borrowings that amounted to an estimated INR 4526.83 Million. The firm also intends to invest in its subsidiary for repayment or prepayment of the other set of borrowings estimated to INR 937.08 Million.
The funds would then subsequently go to the working capital requirements of the company estimated to be INR 600 Million and other corporate purposes.
Bansal Wire is a family-led operation where third-generation Pranav Bansal, Managing Director and Chief Executive Officer of Bansal Wire Industries Limited. Speaking to BIZ Experiences India about the company's growth.
Bansal says, "We today have more than 5000 customers. We are dealing with on a regular basis and we are end-to-end connected with all of them. We don't go through a distributor, products are directly sold to the customer."
According to Pranav, the company employs a de-risking strategy, with no single customer accounting for more than 5% of its sales, and no individual sector or segment constituting more than 25% of the sales.
The industrial landscape remains one of the strongest performers in the market and Pranav explains the firm has covered a lot of groundwork, especially in terms of making the company future-ready.
"We have now introduced a fourth vertical which we call specialty value, which is a vertical that is that will give us a higher margin as well, and as you know these are products which we are focusing on to are expected to give us good growth in the coming years," adds Pranav.
Bansal Wire's Chairman and Whole Time Director Arun Gupta says, "The main thing that has worked for us over the years is the reason behind our consistent 18-20 percent growth, and it is the diversity that we've created."
