Ahead of IPO, Bansal Wire Industries garners Rs 223 crore from anchor investors

Steel wire manufacturer Bansal Wire Industries on Tuesday said it has collected over Rs 223 crore from anchor investors ahead of its initial public offering (IPO). The anchor investors who have been allocated shares include SBI Mutual Fund (MF), HDFC MF, Tata Capital MF, Edelweiss MF, Bandhan MF, and SBI Life Insurance Company, according to a circular uploaded on BSE's website.

The company has allocated 87.30 lakh shares to 18 funds at Rs 256 apiece, which is also the upper end of the price band. This aggregates the transaction size to Rs 223.5 crore, it added.

The maiden public issue is an entirely fresh issue of equity shares worth Rs 745 crore, with no offer-for-sale (OFS) component.

The issue, with a price band of Rs 243 to Rs 256 per share, will be open for public subscription during July 3-5.

Funds 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.

Also, the company 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.

The company's total income increased at a CAGR of 28 per cent to Rs 2,422.56 crore in FY23 from Rs 1,480.41 crore in fiscal 2021, and profit after tax (PAT) increased at a compound annual growth rate (CAGR) of 21.7 per cent to Rs 59.93 crore in FY23 from Rs 40.46 crore in FY21.

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.

Further, investors can bid for a minimum of 58 shares and in multiples of 58 thereafter.

SBI Capital Markets and DAM Capital Advisors are the book running lead managers to the issue.