The ₹745-crore initial public offering of Bansal Wire Industries will open today for public subscription and will close on Friday. The steel wire manufacturer has fixed the price band as ₹243-256 and the market lot is 58 shares. The IPO is entirely a fresh issue of 2.91 crore shares.
While half of the issue size has been reserved for qualified institutional investors (QIBs), 35 per cent for retail investors, and the remaining 15 per cent for non-institutional investors.
As part of IPO, Bansal Wire on Tuesday raised ₹223.50 crore from anchor investors by allocating 87.30 lakh shares to 18 funds at ₹256 apiece. Among them are SBI Mutual Fund (MF), HDFC MF, Kotak Mahindra MF, Tata Capital MF, Edelweiss MF, Bandhan MF, and SBI Life Insurance Company, according to a circular uploaded on BSE’s website.
Proceeds of the IPO will be used for the payment of debt, to support the working capital requirements of the company, and for general corporate purposes.
Bansal Wire Industries is engaged in the business of manufacturing and exporting steel wires. It operates in three broad segments’ high carbon steel wire, mild steel wire (low carbon steel wire) and stainless steel wire, producing a diverse range of over 3,000 wire products in various sizes. The company employs a flexible pricing strategy to manage fluctuations in material costs effectively.
Also, the company said it plans to add a new segment of specialty wires through its upcoming plant in Dadri, which will help it grow and expand its market presence in the upcoming fiscal.
SBI Capital Markets and DAM Capital Advisors are the book running lead managers to the issue. KFin Technologies Limited has been appointed as the registrar for the issue.