About the company
Incorporated in 1985, Bansal Wire Industries is a stainless steel wire manufacturing company operating primarily in three broad segments, i.e., high carbon steel wire, mild steel wire (low carbon steel wire), and stainless steel wire. The company will be also adding a new segment of specialty wires through its manufacturing plant in Dadri. The Company along with its Subsidiary, Bansal Steel & Power Limited, offers over 3000 SKUs (i.e., stock-keeping units) in three broad segments, i.e., high carbon steel wire, mild steel wire (low carbon steel wire) and stainless steel wire, and market and sell its products under the brand name ‘BANSAL’.
To ensure pan India presence across all regions of India, i.e., The company is present in 22 states and six union territories, by way of its dealer distribution network. The company also exports its products to several countries, with 14 global representatives, covering countries like Bangladesh, Brazil, France, Germany, Israel, Italy, the Netherlands, South Korea, South Africa, Sri Lanka, Turkey, the UK, the USA, and Vietnam.
Issue size
| Funds raised in the IPO | Amount |
|---|---|
| Overall | ₹745 crores |
| Fresh issue | ₹745 crores |
| Offer for sale | – |
Proceeds from the issue
| Particulars | Amount (%) |
|---|---|
| Debt reduction | 73.34 |
| Working capital | 8.05 |
| General corporate purposes | 18.61 |
Financials
| Financial year ended | March 2022 | March 2023 | March 2024 |
|---|---|---|---|
| Total assets | 695.48 | 749.05 | 1,264.01 |
| Revenue | 2,205.07 | 2,422.57 | 2,470.89 |
| Profit After Tax | 57.29 | 59.93 | 78.80 |
| EPS | 4.58 | 4.70 | 6.18 |
*All figures except EPS are in ₹ crores
Strengths
- One of the largest steel wire manufacturers with an established market position, strong brand equity and pan-India: The company is the largest player by volume of 72,176 MTPA in stainless steel wire manufacturing companies and second largest steel wire manufacturing company overall by volume of 206,466 MTPA in India, representing 20% and approximately 4% market share as of March 31, 2023, respectively.
- Well-diversified customer base with presence across various sectors: With a customer base exceeding 5,000 customers, spreading across various industrial sectors. Except for Bansal High Carbons Private Limited, which is one of the Group Companies, none of the customers contributed to more than 5% of our sales, and no individual sector or segment constituted more than 25.00% of the sales.
- Extensive Product Portfolio across the steel wire industry with a good mix of high volume and better margin products: The company offers one of India’s most extensive steel wire product portfolios, encompassing over 3000 stock-keeping units (SKUs).
Risks
- Volatility in raw material prices: The company’s manufacturing process relies on raw materials like wire rod coils and zinc, which are prone to price fluctuations. Escalations or variations in raw material costs could significantly impact the business, financial health, operational outcomes, and cash flows.
- Historical negative cash flows: The company has experienced negative cash flows in previous periods and may continue to face such challenges in the future.
- Geographical concentration and expansion strategy: While the company maintains a nationwide presence across all Indian regions, its primary markets are concentrated in northern India. As it endeavors to expand into new geographical territories, there exists a risk of substantial liabilities and potential loss of investments in these regions, potentially adversely affecting the business, financial stability, and operational results.
- International distribution network: With a presence in 14 countries through 14 global representatives, the company’s overseas market distribution relies heavily on a select few representatives. Any significant alterations to the business arrangements with these representatives could have repercussions on operational outcomes, cash flows, and financial standing.
IPO schedule
| Issue period | 03 – 05 July 2024 |
|---|---|
| UPI mandate deadline | 5 PM, 05 July 2024 |
| Allotment finalization | 08 July 2024 |
| Refund initiation | 09 July 2024 |
| Share credit | 09 July 2024 |
| Listing date | 10 July 2024 |
| Mandate end date | 20 July 2024 |
| Lock-in end date for anchor investors (50%) | 07 Aug 2024 |
| Lock-in end date for anchor investors (Remaining) | 06 Oct 2024 |
Note:
- The above schedule is tentative. The anchor lock-in period ends 30 days after the actual allotment date for 50% of the shares and 90 days after for the remaining portion.
- The allotment status will be available by July 09, 2024, on the registrar’s website and the BSE website.