About the Company:
Founded in December 1985, Bansal Wire Industries Limited focuses on the production of stainless steel wire. The company operates in three main categories: high-carbon steel wire, low-carbon steel wire (mild steel wire), and stainless steel wire. Bansal Wire's extensive product line includes over 3,000 different types of steel wires, serving industries ranging from automotive to consumer goods.
Customer Base and Market Presence
Bansal Wire Industries serves over 5,000 clients across various sectors. This wide customer base helps minimize reliance on any single client or industry, thereby reducing risk and supporting consistent growth. The company employs a strategic pricing approach to effectively handle fluctuations in material costs.
Global Footprint
With a strong international presence, Bansal Wire exports to more than 50 countries, including Bangladesh, Brazil, France, Germany, Israel, Italy, Netherlands, South Korea, South Africa, Sri Lanka, Turkey, the United Kingdom, the United States, and Vietnam. The company has 14 global representatives and has seen an impressive export turnover growth at a compound annual growth rate (CAGR) of 47.15% over the past three fiscal years, solidifying its status as a significant player in the global market.
Manufacturing and Sales
Bansal Wire operates four manufacturing facilities located in Mohan Nagar, Ghaziabad, Loni Industrial Area, Ghaziabad, and Bahadurgarh, Jhajjar, Haryana, with two units in the Loni Industrial Area, Ghaziabad. Since 2021, the company has developed a strong sales team of over 50 experienced professionals, covering all regions of India and serving more than 5,000 customers.
IPO Objectives
The main goals of the IPO are as follows:
- Repayment and Prepayment of Borrowings: To reduce the company's outstanding debt.
- Funding Working Capital Requirements: To improve the company’s operational capabilities and support growth.
- General Corporate Purposes: To address various corporate needs and strengthen the overall business framework.
Summary of Financial Information:
| Period Ended | 31-Mar-24 | 31-Mar-23 | 31-Mar-22 |
|---|---|---|---|
| Assets | 1,264.01 | 749.05 | 695.48 |
| Revenue | 2,470.89 | 2,422.57 | 2,205.07 |
| Profit After Tax | 78.8 | 59.93 | 57.29 |
| Net Worth | 422.37 | 282.51 | 223.01 |
| Reserves and Surplus | 358.64 | 273.41 | 213.91 |
| Total Borrowing | 681.14 | 422.19 | 413.15 |
Comparison with Listed Peers:
| Company Name | P/E (x) | P/B (x) | RoE (%) |
|---|---|---|---|
| Bansal Wire Industries Ltd | 41 | 8 | 23 |
| Rajratan Global Wire Ltd | 41 | 6 | 26 |
| DP Wires Ltd | 20 | 3 | 24 |
| Bedmutha Industries Ltd | 36 | 6 | 14 |
Key details of the IPO:
IPO Dates: 3 to 5 July 2024
Price Band: Rs. 243 to Rs. 256 per share
Lot Size: 58 shares
Listing Date: 10 July, 2024
Total Issue Size: Rs. 745 Cr. (100% Fresh Issue)
Retail Quota: 35%
GMP: Rs. 60 (Only for information purposes.)
Note: For additional information & risk factors please refer to the Red Herring Prospectus
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Disclaimer: We are not SEBI registered. All the views are personal and only for educational purposes. Do your due diligence before making any trading or investing decisions. The data provided in this blog post is for illustrative purposes only and does not constitute financial advice. Always consult with a qualified financial advisor before making investment decisions.
