Steel wire manufacturer Bansal Wire Industries on Friday said it has fixed a price band of Rs 243 to Rs 256 per share for its Rs 745-crore initial public offering (IPO). The initial share-sale will open for public subscription during July 3-5. The bidding for anchor investors will open for a day on July 2, the company announced.
The maiden public issue is an entirely fresh issue of equity shares worth Rs 745 crore, with no offer-for-sale (OFS) component. Funds will be used for the payment of debt, to support the working capital requirements of the company, and for general corporate purposes.
Bansal Wire Industries is engaged in the business of manufacturing and exporting steel wires. It operates in three broad segments — high carbon steel wire, mild steel wire (low carbon steel wire) and stainless steel wire.
Also, the company plans to add a new segment of specialty wires through its upcoming plant in Dadri, which will help it grow and expand its market presence in the upcoming fiscals.
The company’s total income increased at a CAGR of 28 per cent to Rs 2,422.56 crore in fiscal 2023 from Rs 1,480.41 crore in fiscal 2021, and profit after tax (PAT) surged at a compound annual growth rate (CAGR) of 21.7 per cent to Rs 59.93 crore in fiscal 2023, from Rs 40.46 crore in fiscal 2021.
Half of the issue size has been reserved for qualified institutional investors (QIBs), 35 per cent for retail investors and the remaining 15 per cent for non-institutional investors.
Further, investors can bid for a minimum of 58 shares and in multiples of 58 shares thereafter.
SBI Capital Markets and DAM Capital Advisors are the book running lead managers to the issue.
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