Bansal Wire listing: Stock lists at a healthy premium of 39%; heres what investors should do?

Bansal Wire Industries shares debuted on expected lines and started trade on the Indian bourses at a healthy premium over the IPO issue price of Rs 256. On the BSE, the stock listed at Rs 352.05, a premium of 37.5 per cent, while on the NSE the stock entered the listed space at Rs 356, a significant premium of over 39 per cent.

Shivani Nyati, Head of Wealth, Swastika Investmart on the stock's listing said the company's listing surpassed pre-listing expectations with a stellar debut on the stock exchanges. 

The company received a robust subscription, highlighting significant investor confidence in Bansal Wire's established position, diverse product portfolio, and consistent financial performance. However, it operates in a highly fragmented and competitive market. 

Overall, Bansal Wire's listing performance surpasses pre-listing expectations and signifies investor confidence in the company's potential. However, careful consideration of the identified risks is still crucial. Investors are advised to hold their position with a stop-loss of Rs. 321, advises Nyati.

Bansal Wire IPO issue details and Anil Singhvi's advise

The issue which was a complete fresh issuance of equity shares worth Rs 745 crore, with no offer-for-sale (OFS) component, garnered a decent response from investors as the issue was subscribed over 59 times on the final day of bidding

The company intends to use the proceeds from the IPO issue towards repayment of  some of its debt, working capital requirements, and other general corporate purposes.

Earlier, market wizard Anil Singhvi advised that investors willing to take risks should subscribe to this issue. He also said that these investors can invest in it for a long term. As far as listing gains are concerned, there can be some listing gains due to the mood of the market, but the advice to invest in it is from a long-term perspective for risk-taking investors.

Bansal Wire Industries is the largest stainless steel wire manufacturing company and the second largest steel wire manufacturing company by volume in India with a production of 72,176 MTPA and 206,466 MTPA, respectively, in FY23, representing 20% and approximately 4% market share, respectively.