Steel wire manufacturer Bansal Wire Industries has filed its has filed draft red herring prospectus (DRHP) with capital markets regulator Sebi to raise ₹745 crore through an Initial Public Offering (IPO).
The proposed IPO consists solely of a fresh issue of equity shares, with no component involving an Offer-For-Sale (OFS), as outlined in the DRHP filed on Thursday.
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Approximately 50% of the issue is reserved for qualified institutional buyers, 35% for retail investors, and 15% for non-institutional investors. The public offer is being made through the book-building process.
The company plans to pay down part of its debt, cover its working capital needs, and use the proceeds from the IPO for other general business needs.
With 206,466 MTPA and 72,176 MTPA of production in FY23, Bansal Wire is India’s second-biggest steel wire manufacturer by volume and the country’s largest manufacturer of stainless steel wire.
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With a diverse range of products and services, the company serves a number of industries, including agriculture, general engineering, hardware, consumer durables, automotive, infrastructure, power and transmission, and vehicle replacement.
It produces a vast array of more than 3,000 stock-keeping units, surpassing all other steel wire manufacturers in India. These sizes span from an incredibly fine 0.04 mm to a substantial 15.65 mm in thickness.
The total income grew from ₹1,480 crore in FY21 to ₹2,422 crore in FY23 at a compound annual growth rate (CAGR) of 28%. PAT jumped by 21.6% to ₹59.9 crore during the same time, while EBITDA grew at a pace of 16% to ₹1,15 crore.
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Revenue was ₹1,154 crore for the six months that ended in September 2023, while profit was ₹38.9 crore.
DAM Capital and SBI Capital Markets are serving as the IPO’s book-running lead managers.
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Published: 21 Jan 2024, 11:26 AM IST
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