Bansal Wire Industries
Book Building issueMainboard₹745 Cr issue
+37.52%
Listing gain over issue price
Issue size
₹745 Cr
1 lot at cut-off
₹14,848
Lot size
58shares
Open
03 Jul 2024
Close
05 Jul 2024
Allotment
08 Jul 2024
Listing
10 Jul 2024
Listing performance
Issue price
₹256
Listed at
₹352.05
Listing-day close
₹350.35
Latest price
—
Listing gain
+37.52%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 03 Jul 2024 – 05 Jul 2024
- Listing date
- 10 Jul 2024
- Face value
- ₹5 per share
- Issue price
- ₹256 per share
- Lot size
- 58 shares
- Issue type
- Book Building issue
- Total issue size
- ₹745 Cr
- Market cap at offer price
- ₹4,008 Cr
- Promoter holding
- 95.78% → 77.97% pre-issue → post-issue
- ISIN
- INE0B9K01025
- Registrar
- Kfin Technologies Ltd.
- Lead managers
- SBI Capital Markets Ltd.
- Registered office
- F-3, Main Road, Shastri Nagar, New Delhi
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 87,30,468 | — | — |
Application size
Minimum 58 shares per lot, in multiples, at ₹256
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 58 | ₹14,848 |
| Retail (max) | 13 | 754 | ₹1,93,024 |
| S-HNI (min) | 14 | 812 | ₹2,07,872 |
| S-HNI (max) | 67 | 3,886 | ₹9,94,816 |
| B-HNI (min) | 68 | 3,944 | ₹10,09,664 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
87,30,468
Anchor portion
₹224 Cr
at ₹256 per share
Valuation and performance
Valuation at offer price
₹256 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 6.18 | 5.03 |
| P/E (×) | 41.42 | 50.89 |
| Price to book (×) | 7.72 | — |
| Market cap | — | ₹4,008 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 18.27%
- ROCE
- 18.46%
- Debt / equity
- 1.48
- PAT margin
- 3.19%
- NAV per share
- ₹33.14
- Price to book
- 7.72
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Bansal Wire Industries
Bansal Wire Industries Limited, incorporated in 1985 and converted to a public company in 1995, is a manufacturer of steel wires operating from four established manufacturing facilities in the National Capital Region (three in Ghaziabad, Uttar Pradesh and one in Bahadurgarh, Haryana, with an additional facility in Dadri commenced commercial production in January 2024). The company, along with its subsidiary BSPL, offers over 3,000 stock keeping units (SKUs) across three main segments: high carbon steel wires (known for strength and hardness), mild steel wires or low carbon steel wires (known for ductility and weldability), and stainless steel wires (made from corrosion-resistant alloys). The company generates revenue through manufacturing and selling these wire products to customers in diverse sectors including automotive, infrastructure, power & transmission, agriculture, consumer durables, hardware, and general engineering. The company has a pan-India distribution network across 22 states and 6 union territories through approximately 20 dealers in India and 14 representatives abroad. The company derives 99.14% of its revenue from operations from steel wires, with 51.92% coming from stainless steel wires, 22.14% from high carbon steel wires, and 8.21% from mild steel wires in Fiscal 2024.
Company Analysis
from RHPBansal Wire Industries Limited manufactures and sells over 3,000 stock keeping units of steel wires (high carbon, mild steel, and stainless steel) across automotive, infrastructure, power & transmission, agriculture, consumer durables, hardware, and general engineering sectors.
Bansal Wire Industries Limited, incorporated in 1985 and converted to a public company in 1995, is a manufacturer of steel wires operating from four established manufacturing facilities in the National Capital Region (three in Ghaziabad, Uttar Pradesh and one in Bahadurgarh, Haryana, with an additional facility in Dadri commenced commercial production in January 2024). The company, along with its subsidiary BSPL, offers over 3,000 stock keeping units (SKUs) across three main segments: high carbon steel wires (known for strength and hardness), mild steel wires or low carbon steel wires (known for ductility and weldability), and stainless steel wires (made from corrosion-resistant alloys). The company generates revenue through manufacturing and selling these wire products to customers in diverse sectors including automotive, infrastructure, power & transmission, agriculture, consumer durables, hardware, and general engineering. The company has a pan-India distribution network across 22 states and 6 union territories through approximately 20 dealers in India and 14 representatives abroad. The company derives 99.14% of its revenue from operations from steel wires, with 51.92% coming from stainless steel wires, 22.14% from high carbon steel wires, and 8.21% from mild steel wires in Fiscal 2024.
Steel wires manufacturingAutomotiveInfrastructurePower & TransmissionAgricultureConsumer DurablesHardwareGeneral Engineering
Objects of the Issue
- Repayment or prepayment of all or a portion of certain outstanding borrowings availed by our Company ₹ 4,526.83 million p.28
- Investment in our Subsidiary for repayment or prepayment of all or a portion of certain of its outstanding borrowings ₹ 937.08 million p.28
- Funding the working capital requirements of our Company ₹ 600.00 million p.28
- General Corporate Purpose ₹ 865.52 million p.28
- See 'Objects of the Issue' on page 119 for details regarding the use of Net Proceeds arising from the Issue p.84
- Repayment or prepayment of all or a portion of certain outstanding borrowings availed by our Company ₹4,526.83 million p.124
- Investment in our Subsidiary for repayment or prepayment of all or a portion of certain of its outstanding borrowings ₹937.08 million p.131
- Funding the working capital requirements of our Company ₹600.00 million p.133
- General corporate purposes ₹865.52 million p.136
- Not disclosed in this document part
Issue Structure
- Total Issue
- 29,101,562 Equity Shares of face value of ₹ 5 each aggregating to ₹ 7,450.00 million
- Fresh Issue
- 29,101,562 Equity Shares of face value of ₹ 5 each aggregating to ₹ 7,450.00 million
- Offer for Sale
- Not applicable
- Price Band
- ₹ 243 per Equity Share (Floor Price) to ₹ 256 per Equity Share (Cap Price)
- Lot Size
- 58 Equity Shares of face value of ₹ 5 each and in multiples of 58 Equity Shares of face value of ₹ 5 each thereafter
- Face Value
- ₹ 5 each
Business Model
The company manufactures steel wires and sells them through a dealer distribution network in India and through representatives in overseas markets including Bangladesh, Brazil, France, Germany, Israel, Italy, Netherlands, South Korea, South Africa, Sri Lanka, Turkey, United Kingdom, United States of America and Vietnam. The company operates on a business model where it manufactures products after receipt of orders at pre-agreed prices from customers. Trade receivables are typically on credit terms of 35-45 days and are non-interest bearing. The company keeps 35-45 days of inventory of raw materials and work-in-progress goods at its facilities. The company sources its raw materials from a diversified base of suppliers and the top 10 suppliers contributed 77.26% of purchases in Fiscal 2024.
Business Segments
High carbon steel wires refer to wires made from high carbon steel with 0.30% to 1.00% carbon and are known for their exceptional strength, hardness, and durability. They are used in applications where these properties are crucial, such as in the manufacturing of springs, cutting tools, and various industrial components that require resilience and resistance to wear and fatigue.
Mild Steel Wire is made out of a low-carbon steel with a carbon content ranging from 0.05% to 0.25% and is known for its ductility, malleability, weldability, and versatile nature. They are commonly used in power & transmission, agriculture, poultry, fencing, and construction.
Stainless steel wire is made from a corrosion-resistant alloy which is a combination of iron, chromium, nickel, and other elements and is used in consumer durables, hardware, automotive, agriculture and other general engineering products.
Manufactures and sells steel wire products including galvanized wire, binding wire, barbed wire, high carbon wire, stainless steel wire, and specialty wires for construction, agricultural, industrial applications, and retail segments
Operated through subsidiary Bansal Steel & Power Limited
Wires made from high carbon steel with 0.30% to 1.00% carbon, known for exceptional strength, hardness, and durability. Used in manufacturing of springs, cutting tools, and various industrial components requiring resilience and resistance to wear and fatigue. The company manufactures high carbon steel wires in sizes ranging from 0.20 mm to 12.00 mm with various zinc and anti-rust coatings.
Wires made out of low-carbon steel with carbon content ranging from 0.05% to 0.25%, known for ductility, malleability, weldability, and versatile nature. Commonly used in power and transmission, agriculture, poultry, fencing, and construction. The company manufactures mild steel wires in sizes ranging from 0.10 mm to 16.00 mm with various zinc and anti-rust coatings.
Wires made from corrosion-resistant alloy combining iron, chromium, nickel, and other elements. Features resistance to corrosion and staining, aesthetic appearance and low maintenance cost. Used in consumer durables, hardware, automotive, agriculture and general engineering products. Available in over 150 grades and diameters from 0.030 mm to 16 mm.
Manufacturing and sale of steel wire products
Job-work activities related to manufacturing process of steel wire products
Wires made from high carbon steel with 0.30% to 1.00% carbon known for exceptional strength, hardness, and durability. Used in manufacturing of springs, cutting tools, and various industrial components that require resilience and resistance to wear and fatigue.
Made out of low-carbon steel with carbon content ranging from 0.05% to 0.25%, known for ductility, malleability, weldability, and versatile nature. Commonly used in power & transmission, agriculture, poultry, fencing, and construction.
Made from corrosion-resistant alloy which is a combination of iron, chromium, nickel, and other elements. Used in consumer durables, hardware, automotive, agriculture and other general engineering products.
Operates multiple manufacturing units for steel wire and carbon product production
SWOT Analysis
Strengths
- • Diversified product portfolio across three broad segments with over 3000 SKUs(p.26)
- • Established pan-India distribution network spanning 22 states and 6 union territories(p.26)
- • Strong revenue concentration in high-demand regions with 64.80% from Delhi, Haryana, Maharashtra and Uttar Pradesh in Fiscal 2024(p.26)
- • Significant profit growth with PAT increasing 31.48% to ₹787.98 million in Fiscal 2024(p.53)
- • Operational presence in 14 countries with global export representatives(p.55)
- • Established market presence in steel wires industry with significant customer base and brand recognition(p.68)
- • Diversified product portfolio with 27 new products launched in FY2024(p.74)
- • ISO and quality certifications demonstrating manufacturing excellence(p.60)
- • Experienced promoter leadership with 38 years of industry expertise(p.63)
- • Established market position with over 5,000 customer base across sectors(p.140)
- • Strong brand equity and market presence as a steel wire manufacturer(p.140)
- • Diverse product portfolio with over 3,000 SKUs and balanced margin profile(p.140)
- • Long-standing industry expertise and management depth(p.140)
- • Benefits from economies of scale(p.140)
- • Established manufacturing operations with significant capital investment(p.281)
- • Strong promoter backing and family-controlled enterprise with stable leadership(p.263)
- • Recent major capital expansion underway with substantial project investment(p.300)
- • Improved profitability trajectory with growing net profit(p.275)
- • Diverse product portfolio serving multiple industries(p.281)
- • Diversified product portfolio across high carbon, mild steel, and stainless steel wires with over 3,000 SKUs(p.355)
- • Large customer base with no material concentration risk(p.358)
- • Strong EBITDA margins maintained consistently over three fiscal years(p.356)
- • Cost-plus pricing model provides protection against commodity volatility(p.356)
- • Established pan-India distribution network covering 22 states and six union territories(p.356)
- • Export presence in over 50 countries with Europe and U.S. representing over 70% of total exports(p.359)
- • Growing export CAGR of 19.63%(p.359)
- • Operational flexibility to switch production across product lines(p.357)
- • Extensive restrictive covenants in borrowing agreements provide lender control(p.388)
- • Comprehensive events of default provisions protect lender security(p.389)
- • Strong enforcement mechanisms available to lenders upon default(p.390)
- • Multiple remedies available to lenders including asset seizure and business control(p.390)
Weaknesses
- • High supplier concentration with top 10 suppliers accounting for 77.26% of purchases in Fiscal 2024(p.40)
- • Low EBITDA margin of 6.04% in Fiscal 2024 compared to peers(p.51)
- • High employee attrition rate of 23.06% for permanent employees and 34.16% for contract workers in Fiscal 2024(p.46)
- • Negative operating cash flows of ₹(5,369.35) million in Fiscal 2024(p.53)
- • High debt-to-equity ratio of 1.48 in Fiscal 2024 with total borrowings of ₹6,811.42 million(p.50)
- • Most manufacturing facilities on leasehold land with limited lease tenure (29-35 years remaining)(p.43)
- • Declining export revenue from ₹3,653.36 million in Fiscal 2022 to ₹2,839.41 million in Fiscal 2024(p.56)
- • Multiple pending trademark applications with no registered protection(p.54)
- • Significant outstanding litigation contingent liabilities totaling ₹123.40 million(p.56)
- • Delayed EPF and ESI deposits by employees over multiple periods in FY2023-2024(p.57)
- • Non-deposit of EPF for certain employees with delays up to 765 days(p.59)
- • High leverage with borrowings of ₹7,802.35 million as of May 31, 2024(p.66)
- • Frequent changes in statutory auditors exposing to compliance risks(p.74)
- • Directors lack experience with listed company operations(p.74)
- • Factual inaccuracies in corporate filings and missing RoC records(p.61)
- • Promoter conflict of interest through similar business activities(p.73)
- • High financial leverage with debt-to-equity ratio of 1.48x(p.143)
- • Concentration of manufacturing capacity at two facilities(p.133)
- • Significant working capital requirements relative to revenue(p.133)
- • Dependence on external financing for operations and expansion(p.133)
- • Corporate governance and record-keeping deficiencies(p.263)
- • Significant debt burden with substantial borrowing levels(p.273)
- • High working capital requirements and inventory concentration(p.273)
- • Litigation involving promoter(p.265)
- • Concentration of manufacturing operations in specific locations(p.281)
- • High leverage ratio with debt-to-equity of 1.48 pre-issue(p.385)
- • Significant reliance on credit facilities with total borrowings of ₹6,811.42 million as of March 31, 2024(p.356)
- • Limited working capital management with trade receivable days increasing to 42 days in Fiscal 2024(p.357)
- • Geographic concentration with 64.80% of revenue from Delhi, Haryana, Maharashtra and Uttar Pradesh(p.356)
- • Newly commissioned Dadri facility operating below full capacity at 78.50% utilization(p.356)
- • Dependence on consolidated subsidiary with non-controlling interest of ₹387.70 million(p.385)
- • High raw material cost representing 81.78% of revenue from operations(p.356)
- • High penalty provisions for loan defaults ranging up to 24%(p.388)
- • Restrictions on capital structure changes limit financial flexibility(p.388)
- • Restrictions on business expansion and diversification activities(p.389)
- • Restrictions on dividend declarations limit shareholder returns(p.389)
- • Obligation to maintain minimum shareholding thresholds for promoters(p.389)
Opportunities
- • Planned expansion into new geographical regions including western, eastern and southern India(p.55)
- • Steel wire industry expected to grow 8-10% CAGR between Fiscals 2023-2028(p.26)
- • Expansion of overseas distribution network with potential for growth(p.55)
- • New Dadri facility commenced commercial production in January 2024 with capacity expansion potential(p.41)
- • Subsidiary BSPL integration providing consolidation benefits and production capacity additions(p.51)
- • Expansion into retail agriculture segment with higher profit margins(p.68)
- • Shift in Indian steel wire industry towards branded players(p.75)
- • Product development and expansion into new product segments(p.68)
- • Capacity expansion and modernization of existing facilities(p.68)
- • Geographic expansion through enhanced distribution network(p.68)
- • Strong infrastructure and capex growth supporting wire demand(p.178)
- • Expanding automotive sector driving demand for specialized wires(p.179)
- • PLI scheme incentives for specialty steel wires manufacturing(p.164)
- • High growth potential from low per-capita steel consumption in India(p.168)
- • Expected wire demand growth of 8-10% CAGR through FY28(p.177)
- • China Plus One strategy creating manufacturing diversification opportunities(p.159)
- • Electric vehicle growth creating new wire demand segments(p.179)
- • Capacity expansion through Dadri project for manufacturing growth(p.300)
- • Subsidiary acquisition expanding product reach and capabilities(p.281)
- • Diverse end-user market segments providing revenue stability(p.281)
- • Expansion into new geographic regions to reduce dependence on northern and western states(p.359)
- • Growth in automotive sector driven by electric vehicles and increasing tire industry demand(p.360)
- • Infrastructure sector growth with demand for low relaxation pre-stressed concrete steel products(p.360)
- • Introduction of new specialty products for automotive and infrastructure sectors(p.360)
- • Export market expansion with introduction of elevator rope and spring wires(p.359)
- • Leverage globally accredited products to capture incremental export markets(p.359)
- • Increased infrastructure investment and disposable income trends expected to boost demand(p.358)
- • Ability to refinance and restructure debt terms with lender approval(p.388)
- • Obtained necessary lender consents for IPO and corporate actions(p.391)
- • Subsidiary (BSPL) successfully emerged from insolvency with resolution plan(p.397)
Threats
- • High volatility in raw material costs subject to commodity market fluctuations(p.43)
- • Dependence on steel wires market performance which accounts for 99.14% of revenue in Fiscal 2024(p.52)
- • Highly fragmented industry with only top 10 manufacturers contributing 22% of production(p.26)
- • Geographic concentration of all five manufacturing facilities in North India exposing to regional risks(p.56)
- • Risk of disruption from natural disasters, infectious diseases and political instability(p.41)
- • Exposure to foreign exchange and commodity price volatility(p.44)
- • Competition from unbranded larger and medium and small manufacturers contributing 75% of market(p.26)
- • Regulatory and compliance risks including GST, income tax and custom duties(p.56)
- • Intense competition from fragmented market with over 100 players(p.76)
- • Unbranded players dominating 75% of market with price advantage(p.76)
- • Dependence on power and fuel with costs rising significantly(p.62)
- • Foreign exchange fluctuation risk affecting export competitiveness(p.64)
- • International operations exposed to political, regulatory and currency risks(p.65)
- • Strict regulatory compliance requirements in manufacturing and environmental areas(p.56)
- • Potential supply chain disruptions from labor disputes and power outages(p.75)
- • Risk of climate change regulations increasing compliance costs(p.79)
- • Dependence on key promoters with risk of management continuity(p.63)
- • Economic slowdown in India adversely affecting domestic demand(p.80)
- • Global economic slowdown impacting steel demand and export markets(p.176)
- • Raw material price volatility and import dependence(p.176)
- • High import dependence on coal and scrap materials(p.176)
- • Rising interest rates impacting borrowing costs and demand(p.159)
- • Fragmented market with strong competition from national and regional players(p.177)
- • Global decarbonization requirements and trade restrictions(p.176)
- • Geopolitical tensions and supply chain disruptions(p.159)
- • Significant interest burden impacting profitability(p.318)
- • Exposure to commodity and input price volatility(p.317)
- • Dependence on working capital financing from banking consortium(p.314)
- • Concentrated customer base and trade receivables exposure(p.305)
- • Exposure to power and energy cost fluctuations(p.319)
- • Commodity price volatility affecting raw material procurement costs(p.356)
- • Intense competition from established manufacturers and competitors with greater resources(p.358)
- • Risk of overcapacity and price reduction from greater-than-expected competitor investment(p.358)
- • Exposure to macro-economic cyclicality affecting customer industries(p.358)
- • Regulatory and policy risks affecting customer industries(p.358)
- • Foreign exchange rate volatility affecting export pricing and competitiveness(p.343)
- • Contingent liabilities from tax demands and regulatory proceedings(p.347)
- • Risk of agricultural sector downturn due to monsoon dependency(p.358)
- • Risk of accelerated repayment if covenant violations occur(p.391)
- • Lenders can enforce security interests and liquidate company assets(p.390)
- • Material adverse changes in financial ratios trigger default events(p.389)
- • Deterioration in loan account status or security value can trigger default(p.389)
- • Cross-default provisions expose company to multiple lender actions(p.389)
- • Subsidiary faces outstanding tax demands from government departments(p.397)
- • Company faces material income tax assessment demand for prior years(p.397)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Arun Gupta | Promoter | 24.12% | — |
| Anita Gupta | Promoter | 24.24% | — |
| Pranav Bansal | Promoter | 10.85% | — |
| Arun Kumar Gupta HUF | Promoter | 14.39% | — |
| Arun Gupta | Promoter | 24.12% | 19.63% |
| Anita Gupta | Promoter | 24.24% | 19.74% |
| Pranav Bansal | Promoter | 10.85% | 8.83% |
| Arun Kumar Gupta HUF | Promoter Group | 14.39% | 11.72% |
| Arun Gupta | Promoter | 24.12% | 19.63% |
| Anita Gupta | Promoter | 24.24% | — |
| Arun Kumar Gupta HUF | Promoter | 14.39% | 10.04% |
| Pranav Bansal | Promoter | 10.85% | 8.83% |
| Shivam Wires Private Limited | Promoter Group entity | 4.92% | 4.01% |
| Manglam Wires Private Limited | Promoter Group entity | 4.10% | 3.34% |
| Bansal Strips Private Limited | Promoter Group entity | 3.30% | 2.68% |
| Sonakshi Bansal | Promoter Group - individual | 2.83% | 2.30% |
| Mrinaal Mittal | Promoter Group - individual | 5.00% | 4.07% |
| Manishi Towers Private Limited | Promoter Group entity | 1.10% | 0.89% |
| Shyam Sunder Arun Kumar Private Limited | Promoter Group entity | 0.93% | 0.76% |
| Arun Gupta | Promoter/Chairman and Whole-Time Director | 24.12% | 19.63% |
| Pranav Bansal | Promoter/Managing Director and Chief Executive Officer | 10.85% | 8.83% |
| Arun Gupta | Promoter | 24.12% | 19.63% |
| Anita Gupta | Promoter | 24.24% | 19.74% |
| Pranav Bansal | Promoter | 10.85% | 8.83% |
| Arun Kumar Gupta HUF | Promoter Group | 14.39% | 11.72% |
| Arun Gupta | Promoter | — | — |
| Anita Gupta | Promoter | — | — |
| Pranav Bansal | Promoter | — | — |
| Arun Gupta | Promoter | — | — |
| Anita Gupta | Promoter | — | — |
| Pranav Bansal | Promoter | — | — |
Leadership
Arun Gupta · Chairman and Whole-Time Director
Pranav Bansal · Managing Director and Chief Executive Officer
Ghanshyam Das Gujrati · Chief Financial Officer
Sumit Gupta · Company Secretary and Compliance Officer
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
Bansal Wire Industries IPO FAQs
What is the lot size of Bansal Wire Industries IPO?
The minimum lot size of Bansal Wire Industries IPO is 58 shares. One lot costs ₹14,848 at the cut-off price.
When does Bansal Wire Industries IPO open and close?
Bansal Wire Industries IPO opened for subscription on 03 Jul 2024 and closed on 05 Jul 2024.
What is the listing date of Bansal Wire Industries IPO?
Bansal Wire Industries IPO listed on 10 Jul 2024.