Bansal Wire shares list at 39% premium over IPO price

Ahead of the , the company's shares traded with a premium of Rs 63 in the unlisted market.

The company proposes to use the funds from the IPO to repay some of its debt, working capital requirements and other general corporate purposes.

Bansal Wire, a manufacturer of steel wire products, operates across three segments, catering to a diverse customer base exceeding 5,000. With a comprehensive product portfolio of over 3,000 SKUs, the company offers a favorable mix of high-volume and higher-margin products, contributing to a stable and consistent margin profile.

Analysts believe the company's financial performance has been positive, demonstrating consistent growth in both revenue and profitability. However, the company's operations are susceptible to fluctuations in raw material supply and costs due to the inherent volatility of the steel market.

It manufactures over 3,000 stock keeping units, the highest amongst all steel wire manufacturers in India with sizes ranging from as thin as 0.04 mm to as thick as 15.65 mm.

With a well-diversified base of more than 5,000 customers spanning various sectors, Bansal Wires Industries has established a robust network that contributes to its growth.

Over the years, the company has adopted a de-risking strategy, under which no single customer accounts for more than 5% of its sales, and no sector or segment constitutes more than 25% of the sales.

The total income has increased at a CAGR of 28% from Rs 1480 crore in FY21 to Rs 2,422 crore in FY23. EBITDA during the same period grew at a rate of 16% to Rs 1,15 crore, while PAT has increased at 21.6% to Rs 59.9 crore.

SBI Capital Markets and DAM Capital are acting as the book running lead managers to the IPO.

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