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.

Bansal Wire IPO, a Book Built issue amounting to ₹745.00 crores, consisting entirely a Fresh Issue of 291.01 lakh Shares. The subscription period for the Bansal Wire IPO opens on July 3, 2024, and closes on July 5, 2024. The allotment is expected to be finalized on or about Monday, July 8, 2024, and the shares will be listed on the BSE NSE with a tentative listing date set on or about Wednesday, July 10, 2024.

The share price band of Bansal Wire IPO is set at ₹243 to ₹256 equity per share, with a minimum lot size of 58 shares. Retail investors are required to invest a minimum of ₹14,848, while the minimum investment for High-Net-Worth Individuals (HNIs) is 14 lots (812 shares), amounting to ₹207,872.

SBI Capital Markets Limited and DAM Capital Advisors Limited are the book-running lead manager, KFin Technologies Limited is the registrar for the Issue. 

Bansal Wire Industries Limited IPO GMP Today
The Grey Market Premium of Bansal Wire Industries Limited IPO is expected in the range of ₹0 based on the financial performance of the company. No real trading is done on the basis of Grey Market Premium that's why no real discovery of price can be done before the listing of shares on the stock exchange. The Grey Market Premium totally depends upon the Demand and Supply of the shares of the company in unorganized manner which is not recommended. The Grey Market Premium is mentioned for educational and informational purposes only.

Bansal Wire Industries Limited IPO Allotment Status
Bansal Wire IPO allotment date is 08 July, 2024, Wednesday. Bansal Wire IPO Allotment will be out on 8th July 2024 and will be live on Registrar Website from the allotment date. Check Bansal Wire Industries Limited IPO Allotment Status here. Here's how you can check the allotment status:
- Navigate to the IPO allotment status page.
- Select Bansal Wire Industries Limited IPO from the dropdown list of IPOs.
- Enter your application number, PAN, or DP Client ID.
- Submit the details to check your allotment status.
By following either of these methods, investors can quickly determine their allotment status and proceed accordingly with their investments.

Objectives of Bansal Wire Industries Limited IPO

Bansal Wire Issue Proceeds from the Fresh Issue will be utilized towards the following objects :
1. Repayment or prepayment of all or a portion of certain outstanding borrowings availed by their Company
2. Investment in their Subsidiary for repayment or prepayment of all or a portion of certain of its outstanding borrowings
3. Funding the working capital requirements of their Company
4. General corporate purposes.

Refer to Bansal Wire Industries Limited RHP for more details about the Company.

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About BANSAL WIRE INDUSTRIES Limited

Bansal Wire Industries Limited along with its Subsidiary, Bansal Steel & Power Limited, offers over 3000 SKUs (i.e., stock keeping units) in three broad segments, i.e., high carbon steel wire, mild steel wire (low carbon steel wire) and stainless steel wire, with their Company’s offering of approximately 2000 SKUs and their Subsidiary’s offering of 1500 SKUs. Further, there are approximately 500 SKUs which are common in both their Company and Subsidiary. High carbon steel wires refer to wires made from high carbon steel with 0.30% to 1.00% carbon and are known for their exceptional strength, hardness, and durability. They are used in applications where these properties are crucial, such as in the manufacturing of springs, cutting tools, and various industrial components that require resilience and resistance to wear and fatigue. Mild Steel Wire is made out of a low-carbon steel with a carbon content ranging from 0.05% to 0.25% and is known for its ductility, malleability, weldability, and versatile nature. They are commonly used in power & transmission, agriculture, poultry, fencing, and construction. Stainless steel wire is made from a corrosion-resistant alloy which is a combination of iron, chromium, nickel, and other elements and is used in consumer durables, hardware, automotive, agriculture and other general engineering products.

They operate from their four established manufacturing facilities in the National Capital Region, India, with three manufacturing facilities in Ghaziabad (U.P.) and one manufacturing facility in Bahadurgarh (Haryana). While they have built their network in order to ensure pan India presence across all regions of India, i.e., they are present in 22 states and six union territories, by way of their dealer distribution network, they have robust revenue from operations in northern states and western states in India with 65.61%, 67.78% and 64.80% of revenue from operations generated from Delhi, Haryana, Maharashtra and Uttar Pradesh in Fiscal 2022, 2023 and 2024, respectively.

In terms of the operational benchmarking, steel wires industry is a highly fragmented industry with top 10 manufacturers contributing to around 22% of the overall production and their Company contributes 2% of the overall production and other unbranded larger and medium and small manufacturers contributing 75% of the overall production. They are exporting their products to several countries, with 14 global representatives, covering countries like Bangladesh, Brazil, France, Germany, Israel, Italy, Netherland, South Korea, South Africa, Sri Lanka, Turkey, United Kingdom, United States of America and Vietnam. Their export turnover in Fiscal 2024 was ₹ 2,839.41 million, with Europe and U.S. markets accounting to more than 70% of the total exports in Fiscal 2024.

INDIAN STEEL INDUSTRY

Long products : Finished long steel products are typically produced by hot rolling/forging of bloom/billets/ingots into useable shape/sizes. These are normally supplied in straight length/cut length, except wire rods, which are supplied in wound coils. The different types of long products include bar and rods (thermo-mechanically treated (TMT) bars, wire rods, round bars, etc), structural steel (angles, channels, beams, fabricated sections, girders, etc), and railway materials.

Flat products : Flat products are produced from slabs/thin slabs in rolling mills using flat rolls. Flat products comprise hot rolled (HR) and cold rolled (CR) coils, coated products, etc. HR flat products are produced by re-rolling of slabs/thin slabs at high temperatures (above 1,0000C) in plate mills or in hot strip mills. CR coils/strips are produced by cold rolling of HR coils/strips in cold rolling mills (normally at room temperature). CR coils/strips/sheets are characterised by lower thickness, better/bright finish, and specific mechanical/metallurgical properties.

Alloy steel : Steel that is produced with one or more elements in specified proportions to impart specific physical, mechanical, metallurgical, and electrical properties is called alloy steel. Stainless steel is one such type of alloy steel. Alloy/stainless steel is manufactured in different grades, with varying proportions of carbon and other elements. Common elements used to make alloys are manganese, silicon, nickel, lead, copper, chromium, tungsten, molybdenum, niobium, and vanadium.
Alloy/stainless steel is used in forgings, tools and dies, bearings, fasteners, etc. These are subsequently used in manufacturing by enduse sectors such as automobiles, power, oil and gas, industrial machines, railways/mass rapid transport systems, defence, etc. Some popular applications are in products such as crankshafts, connecting rods, cam shafts, bearings, fasteners, railway carriage wheels, bomb shells, cutting tools, surgical instruments, and utensils.

Non-alloy steel : Non-alloy or carbon steel comprises iron and carbon. It is the most produced variant of steel (comprised 93-95% share of India’s finished steel production in the past five years). The main components are carbon, manganese and silicon in proportions of up to 1.70%, 0.90% and 0.30%, respectively. A change in the composition of carbon affects the properties of carbon steel. The steel, by definition, does not contain any alloying element.
Non-alloy steel is used in end-user sectors such as construction, infrastructure, automobiles, consumer durables, etc. Some popular applications are in buildings, bridges, rails, pipelines, body panels for cars, refrigerators, and washing machines.

Wire rods production
India produced 7.5 Million Tonnes of wire rods in fiscal 2023, registering an ~7% compound annual growth rate during fiscals 2019-2023. The wire rods market is an unorganised one, with national players such as JSW Steel, TATA, RINL, SAIL, and JSPL holding nearly half of the market share, while the other half is held by regional and local players. The wire rods produced form nearly 10-12% of the total re-rolling production done in India during fiscals 2019-2023.

Steel wires market
Steel wire is a cylinder-shaped, flexible steel strand. Its manufacturing process typically entails a number of steps, including rolling and surface heating. Based on their chemical composition, steel wires are generally categorized as high carbon, low carbon, and Speciality wires. Within each category, different wires are produced and go through different processes. While low carbon wires are popular in fencing and electrodes segment, high carbon wires find applications across infrastructure, automotive and power industry. Alloy and stainless steel wires are majorly used in fasteners, bearing and kitchen accessories manufacturing. Further, speciality wires like steel cord, hose wires, etc. find applications primarily in automotive and construction

India’s position in the global steel market :

India has been the second largest global steel producer since CY 2018. Of the 1,878 Million Tonnes of global crude steel production, India accounted for 6.64% share, or ~125 Million Tonnes, in CY 2022. Globally, crude steel production increased to 1,878 Million Tonnes in 2022 from 1,827 Million Tonnes in 2018, a compound annual growth rate of 0.70%, while India’s crude steel production grew at 4.02% compound annual growth rate, higher than the world average.

At the global level, all major economies registered a y-o-y decline in steel demand in 2020. However, demand for Chinese steel grew at 9.11% on-year in 2020 on account of the country’s quick recovery from the first wave of Covid-19 and receipt of a stimulus package to spur industrial and economic activity. But, in 2021, demand for Chinese steel declined 4.32%, resulting in global demand slipping 3.49% on-year. In 2022, high inflation, tightening global monetary conditions, and slowdown in production in China, kept the global steel sector under pressure.
In 2023 though, global steel demand is forecast to grow 1.95% to 1,822 Million Tonnes, as per the World Steel Association. This projection is on the back of the effect of persistent inflation and high interest rate in most economies.

BANSAL WIRE INDUSTRIES LIMITED STRENGTHS

1. Steel wire manufacturers with revenue of ₹ 24,447.19 million in Fiscal 2024 with established market position and strong brand equity
2. More than 5,000 customer base with presence across various sectors
3. Economies of Scale
4. Product Portfolio with over 3,000 stock keeping units across the steel wire industry with good mix of high volume and better margin products
5. Business model with stable and consistent margin profile

BANSAL WIRE INDUSTRIES LIMITED STRATEGIES

1. Expansion of their customer base in north India and increase penetration in other geographies
2. Focus on increasing their exports sales and growing sectors like automotive and infrastructure
3. Entering into B2C segment steel products and establishing retail distribution network
4. Increase in margin profile by focusing on high margin products and adding speciality wire segment
5. Technological advancement of manufacturing facilities

BANSAL WIRE INDUSTRIES LIMITED RISK FACTORS & CONCERNS

1. They rely substantially on their top 10 suppliers of the raw materials and work-in-progress goods used in their manufacturing processes.
2. They are dependent on the performance of the steel wires market.
3. They plan to expand into new geographical regions and may be exposed to significant liability and could lose some or all of their investment in such regions.
4. All their current manufacturing facilities are geographically located in one region, i.e., North India at National Capital Region, India.
5. They have power and fuel requirements most of the times.
6. Their success depends on their ability to execute their growth strategies.