BANSAL WIRE INDUSTRIES IPO Review

BANSAL WIRE INDUSTRIES LIMITED 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 Fiscal 2023, representing 20% and approximately 4% market share, respectively. Since its incorporation, they have consistently delivered quality products, creating a niche identity in the industry.

The company is led by professional and experienced Promoter named, ARUN GUPTA, with expertise of over 38 years in the steel wire industry.

Financially, Bansal Wire revenue increased from ₹22,050.72 Millions in FY22 to ₹24,225.68 Millions in FY23 and currently stable at ₹24,708.86 Millions in FY24. Similarly, EBITDA increased from ₹1,131.48 Millions in FY22 to ₹1,147.05 Millions in FY23 and currently stable at ₹1,493.09 Millions in FY24. The PAT also increased from ₹572.90 Millions in FY22 to ₹599.30 Millions in FY23 and currently at ₹787.98 Millions in FY24. This indicates a steady growth in financial performance.

For the Bansal Wire IPO, the company is issuing shares at a pre-issue EPS of ₹6.18 and a post-issue EPS of ₹5.03. The pre-issue P/E ratio is 41.42x, while the post-issue P/E ratio is 50.89x against the industry P/E ratio of 28.6x. The company's ROCE for FY24 is 18.46%, and ROE for FY24 is 21.19%. These metrics suggest that the IPO is fully priced.

The Grey Market Premium (GMP) of Bansal Wire indicates potential listing gains of 0%. Given the company's financial performance and the valuation of the IPO, we recommend Investors to Avoid to the IPO for Listing gains or Long Term purposes