Bansal Wire IPO: From financials to key risks, here are 10 key things to know from RHP before investing

Bansal Wire IPO: The issue that is open for subscription started on 3, July 2024 and closes on 5, July, 2024. From financials to key risks, here are 10 key things one must know from RHP before investing

1.Bansal Wire IPO: Subscription details'

Bansal Wire IPO initial Public offer that is open for subscription now, started on 3, July 2024 and closes on 5, July, 2024.

The bidding range for the Bansal Wire IPO is ₹243 to ₹256 per share. An application must have a minimum lot size of 58 shares. Considering bid price and application lot size, retail investors are required to invest a minimum of ₹14,848.

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Bansal Wire IPO: Objectives of the issue

The Bansal Wire Issue's Net Proceeds are proposed to be used for payment in full or in part for certain outstanding loans obtained by the company or their subsidiary. A part is to be utilized for meeting the needs for working capital and general corporate purposes.

Bansal Wire IPO: About the Company

Bansal Wire is a large stainless steel wire manufacturing company and as per RHP the second largest steel wire manufacturing company by volume in India with a production of 72,176 MTPA (million tonne per annum) and 206,466 MTPA, respectively, in Fiscal 2023, representing 20% and approximately 4% market share, respectively.

4.Bansal Wire IPO: Key Risks

1.Any shortages, delay or disruption in the supply of the raw materials Bansal Wire uses in its manufacturing process may have a material adverse effect on its business, financial condition, results of operations and cash flows.

2.Any disruption, breakdown or shutdown of its manufacturing facilities may have a material adverse effect on our business, financial condition, results of operations and cash flows.

5. Bansal Wire IPO Promoters

Arun Gupta, Anita Gupta, Pranav Bansal, and Arun Kumar Gupta HUF are the company's promoters.

6. Bansal Wire Industry Landscape

The wire manufacturing is a highly fragmented market with over 100 players operating in the industry with top 10 manufacturers continuing to around 22% of the market with Tata Wires and Bansal Group catering to ~13% of the demand. Other than Tata wires and Bansal Group, the other key wire manufacturers have a market share in the range of 1-3%. Indian steel wire industry has been gradually moving from a largely unbranded play towards branded play including regional and national players because of rising awareness among consumers towards safety and quality

7. Bansal Wire IPO: Comparison with Listed Peers

The listed peers for Bansal Wire is Rajratan Global Wire Limited which as per RHP as on 1st January 2024 is trading at 55.52 times price to FY23 Equity ratio on earnings per share of ₹19.72 and Return on Net Worth at 23.15%. Comparatively Bansal Wire IPO Earnings per share stand at ₹7.21 and Return on Net worth at 21.21.

Besides D.P. Wires Ltd and Bedmutha Industries Ltd are other two listed peers as per Anand Rathi shares and Stocks.

8. Bansal Wire IPO: Registrar, Book running manager

The book running lead managers of the Bansal Wire IPO are SBI Capital Markets Limited and Dam Capital Advisors Ltd (formerly Idfc Securities Ltd), with Kfin Technologies Limited serving as the issue's registrar.

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9. Bansal Wire IPO: Allotment and Listing details

On Monday, July 8, 2024, the allocation for the Bansal Wire IPO is anticipated to be completed. The planned listing date for the Bansal Wire IPO is set for Wednesday, July 10, 2024 on the BSE and NSE.

10. Bansal Wire IPO: GMP or Grey Market premium

Today's IPO GMP for Bansal Wire is +58 as per investorgain.com, which shows that the share price of Bansal Wire Industries was trading at a premium of ₹58 on the grey market.

Considering the upper end of the IPO pricing band and the current premium on the grey market, Bansal Wire Industries' anticipated listing price was ₹314 per share, 22.66% higher than the IPO price of ₹256.

The "grey market premium" represents the amount that investors are ready to pay over the issue price.

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