Bansal Wire Industries Limited, a prominent name in the steel wires industry, is set to launch its initial public offering (IPO) from July 3 to July 5, 2024.
The company’s diverse product portfolio includes high carbon steel wires, mild steel wires, and stainless steel wires, catering to various industrial applications.
Founded on principles of quality and innovation, Bansal Wire has established itself through its subsidiary, Bansal Steel & Power Limited, offering a wide range of over 3000 stock keeping units (SKUs).
Financial Performance
Financially, Bansal Wire Industries has demonstrated robust performance.
In Fiscal 2024, the company reported total revenue from operations for steel wires amounting to ₹2,028.76 crore, with its stainless steel wires segment contributing significantly at 51.92% of the total revenue.
Over the years, the company has shown consistent growth, achieving a Compound Annual Growth Rate (CAGR) of 5.86% in total income from Fiscal 2022 to Fiscal 2024.
Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) and Profit After Tax (PAT) have also shown strong growth with CAGRs of 14.87% and 17.28%, respectively, during the same period.
IPO Details and Utilization of Funds
According to the data provided on BSE Bansal Wire Industries will offer 3,06,58,436 shares in a price band of ₹243 to ₹256 per share, with a face value of ₹5 per share.
The funds raised through the IPO will primarily support the company’s expansion plans, aimed at enhancing production capacities and operational efficiencies across its manufacturing facilities.
Notably, the company recently initiated operations at its Dadri facility, focused on high carbon wires, with plans to scale up production capacity to meet increasing market demand.
Production Facilities and Expansion Plans
Strategically located in the National Capital Region of India, Bansal Wire operates four manufacturing facilities with a combined installed capacity of 259,000 metric tonnes per annum (MTPA) for various steel wires.
The planned expansion at the Dadri facility underscores the company’s commitment to meeting specialized wire requirements and strengthening its market presence both domestically and internationally.
Global Reach and Export Strategy
Bansal Wire Industries has also established a significant export footprint, with exports accounting for ₹283.94 crore in Fiscal 2024.
Key export markets include Asia, Europe, and North America, supported by a network of 14 global representatives.
This global reach enhances the company’s market penetration and revenue diversification, positioning it as a formidable player in the global steel wires market.
Conclusion
Bansal Wire Industries Limited’s upcoming IPO represents a compelling opportunity for investors seeking exposure to a well-established company with strong financial performance, strategic growth initiatives, and a robust market position.
The IPO proceeds aimed at expanding production capabilities and meeting growing market demand are expected to further enhance shareholder value and sustain the company’s trajectory of growth and profitability in the years ahead.
