Bansal Wire Industries Files ₹745 Crore IPO to Fuel Expansion and Debt Reduction

Bansal Wire Industries, one of India’s leading steel wire manufacturers, has taken a significant step toward further expansion and debt reduction by filing its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an Initial Public Offering (IPO) aiming to raise ₹745 crore.

Unlike many IPOs that include an Offer-For-Sale (OFS) component, Bansal Wire’s proposed IPO consists solely of a fresh issue of equity shares, as highlighted in the DRHP filed on Thursday. The company plans to allocate approximately 50% of the issue for qualified institutional buyers, 35% for retail investors, and 15% for non-institutional investors, utilizing the book-building process for the public offer.

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Bansal Wire Industries intends to deploy the funds raised to address its existing debt, cover working capital requirements, and meet other general business needs. The company, with production capacities of 206,466 MTPA and 72,176 MTPA in FY23, stands as India’s second-largest steel wire manufacturer by volume and the country’s largest producer of stainless steel wire.

With a product portfolio exceeding 3,000 stock-keeping units, ranging from an incredibly fine 0.04 mm to a substantial 15.65 mm in thickness, Bansal Wire serves diverse industries, including agriculture, general engineering, hardware, consumer durables, automotive, infrastructure, power and transmission, and vehicle replacement.

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In the financial year ending in March 2023, the company reported robust financial performance, with total income growing from ₹1,480 crore in FY21 to ₹2,422 crore in FY23, marking a Compound Annual Growth Rate (CAGR) of 28%. Profit After Tax (PAT) increased by 21.6% to ₹59.9 crore during the same period, while Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) saw a growth rate of 16% to ₹1,15 crore.

For the six months ending in September 2023, Bansal Wire Industries recorded a revenue of ₹1,154 crore and a profit of ₹38.9 crore.

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The IPO will be managed by DAM Capital and SBI Capital Markets, who will serve as the book-running lead managers for this significant offering in the Indian capital markets. Investors are eagerly awaiting further details and the subsequent listing of Bansal Wire Industries on the stock exchanges.

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