Bansal Wire IPO sails through on Day 1 on robust NII, retail demand. Check GMP and other details
IPO) of Bansal Wire sailed through on the first day of the bidding process, driven by robust interest from retail and non-institutional investors. Both NII and retail categories were fully subscribed, while the QIB portion lagged with no bids.
The public offer is being conducted via the book-building process, with approximately 50% of the issue reserved for qualified institutional buyers, 35% for retail investors, and 15% for non-institutional investors.
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 IPO GMP
In the unlisted market, the company's shares are trading with a GMP of Rs 65.
Bansal Wire IPO review
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.
«The IPO is priced at a P/E ratio of 41.41x, which appears on the higher end. Considering both the company's strengths and potential risks, we recommend this IPO only for investors with a
