The Bansal Wire IPO received an overwhelmingly positive response on its last day, with oversubscription figures as follows:
- Qualified Institutional Buyers (QIB): 153.86 times
- Non-Institutional Investors (NII): 54.21 times
- Retail Individual Investors (RII): 14.37 times
This totals to an overall subscription of 62.76 times the available shares.
The IPO, which opened for subscription from July 3, 2024, to July 5, 2024, is a mainline offering of ₹745.00 crore, entirely consisting of fresh issue shares. The price band was set at ₹243.00-₹256.00 per share, and the stock is expected to list at a price above ₹315.
Company Overview:
Bansal Wire is a well-established steel wire manufacturer with a strong market position, significant brand equity, and a pan-India presence. The primary objectives of the IPO are to prepay existing debts and fund working capital requirements.
Financial Performance:
- PAT (Profit After Tax): Increased from ₹57.29 crore in March 2022 to ₹78.80 crore in March 2024.
- Total Borrowing: Rose from ₹413.15 crore to ₹681.14 crore during the same period.
- Total Assets: Increased from ₹695.48 crore to ₹1,264.01 crore.
Investment Thesis:
- Attractive Price Band: The IPO price is considered attractive given the company’s financial health and market position.
- Profitable Balance Sheet: The company’s profitability and asset growth are strong indicators of its financial stability.
- Market Presence: Bansal Wire’s established market presence and brand recognition provide a competitive edge.
- Industry Position: Operating in an in-demand business category with relatively low competition due to high project costs.
- Backed by Renowned Investors: The strong backing from QIBs and other funds adds credibility and confidence in the company’s potential.
Listing Forecast:
Based on these factors, VLA Ambala, a SEBI registered research analyst, forecasts a bumper listing for Bansal Wire, with an anticipated listing gain ranging from 42% to 65% on July 10, 2024.
This strong financial performance, combined with a positive industry outlook and robust investor interest, makes Bansal Wire an attractive investment opportunity in the current IPO market.
Vijay Laxmi aka VLA Ambala is SEBI registered Research Analyst and her research and view are being published in various media platforms as well- Check here – https://smtstockmarkettoday.com/pr-and-media/
Follow VLA Ambala SEBI RA here on telegrams here – https://t.me/SMTStockMarketToday