Bansal Wire IPO: Bansal Wire Industries Limited, a significant participant in the steel wire business, launched its initial public offering on July 3rd, 2024, and will remain available until July 5th. So, Indian primary market investors have only one day to apply for the Bansal Wire IPO. Based on the Bansal Wire IPO subscription status, the public offering has gotten a robust reaction from primary market investors. As bidding for the public offering concludes today, the gray market has turned positive on the initial offer. Bansal Wire Limited shares are currently trading at a premium of ₹65 in the grey market, as reported by stock market experts.
The Bansal Wire IPO GMP for today
As previously stated, the grey market premium (GMP) for the Bansal Wire IPO is currently ₹65, which is ₹6 more than the ₹59 GMP from Thursday. According to market watchers, there are two main causes for the increase in the Bansal Wire GMP: the high subscription status of the offering and the favorable feelings in the secondary market. According to them, the Indian stock market is predicted to continue its upward path, therefore we can anticipate further increases in the Bansal Wire IPO GMP today.
Status of subscriptions for Bansal Wire IPO
On the third day of bidding, at 1:21 PM, the retail part of the public issue was filled 10.10 times, the NII section had 32.05 subscriptions, the QIB component had 12.22 bookings, and the book build issue had been booked 15.41 times.
Review of Bansal Wire’s IPO
Mehta Equities Research Analyst Rajan Shinde tagged the Bansal Wire IPO as “subscribe.” He stated that the issue is requesting a market cap of ₹4008/-Cr based on a value parse at the upper range of ₹256/-. The business is requesting a PE of 50.86x, which seems properly valued in comparison to its listed industry peers, based on FY 2024 earnings and fully diluted post-IPO paid-up capital. Nonetheless, the business is currently going through a phase of consolidation, which could result in strong top-line growth in FY 2025. We predict a notable increase in the bottom line, mainly due to the financial burden of repaying outstanding borrowings from the proceeds of the initial public offering (IPO), even though the margin profile is likely to stay stable at 6-7%.”
We think Bansal Wire Industries Ltd is well-positioned for sustained growth given the strong growth projections for the Indian steel wire industry, which are driven by the expansion of the automotive industry and multi-segmental infrastructure growth, which is predicted to grow at a CAGR of 8–10% from FY 2023–28. As a result, taking a long-term view, we advise our investors to “SUBSCRIBE” to the Bansal Wires Industries Ltd IPO. Furthermore, Shinde stated, “We anticipate Bansal to produce respectable listing gains above and beyond 25% on the issue price.”
Arun Kejriwal, Founder of Kejriwal Research and Investment Services, unveiled the investment strategy for the Bansal Wire, saying, “The company has offered its issue at slightly higher valuations, but due to the overcrowded primary and secondary market, one can expect a decent listing gain from the book build issue. However, the issue may experience a significant correction following the profit-booking trigger in the secondary market. So, one should book a profit and quit after the listing. During the company’s roadshow, promoters stated that its capacity would triple next year, but this would take two to three years to reflect on its balance sheet. So, one can consider buying the shares at a discount for three to four years after making a profit after listing.”
Details about the Bansal Wire IPO
The tentative IPO allotment date for Bansal Wire is July 6, 2024. However, if share allocation is announced on Saturday this week, it is expected to be finalized on Monday following week, July 8, 2024. Following the ‘T+3’ listing criteria, the most likely date for the Bansal Wire IPO is July 10, 2024, or Wednesday next week.
