Bansal Wire IPO second day of bidding today: Should you buy or not? Check GMP, key dates, subscription status, more.

Bansal Wire IPO subscription status: The initial public offer of Bansal Wire Industries Ltd has been oversubscribed of the second day of bidding led by non institutional investors. Bansal Wire IPO subscription status was 5.73 times, as per BSE data.

The quota for retail investors got subscribed 6.19 times while the portion for non-institutional investors fetched 12.16 times subscription. The Qualified Institutional Buyers (QIBs) part received 9% subscription.

The initial share sale received bids for 12,28,88,254 shares against 2,14,60,906 shares on offer, according to BSE data

On the first day of bidding yesterday, Wednesday, July 3, the initial public offer (IPO) of steel wire maker Bansal Wire Industries Ltd got off to a terrific start with a big number of subscriptions from retail and non-institutional investors. At the end of day 1, Bansal Wire Industries IPO subscription status was 1.76 times, as per BSE data.

The retail investor quota has been subscribed to 2.47 times, while the non-institutional investor (NII) component has been subscribed to 2.44 times. One percent of the category is reserved for Qualified Institutional Buyers (QIBs).

The public offering of Bansal Wire Industries has set aside a 15% of its shares for NII, 50% of its shares for QIB, and 35% of its shares for retail investors.

Also Read: Bansal Wire IPO Day 1: Check subscription status, GMP and other details. Should you apply or not?

On Tuesday, Bansal Wire Industries said that it had received more than ₹223 crore from major investors. Steel wire manufacture and exporting are the activities of Bansal Wire Industries. High carbon steel wire, mild steel wire (low carbon steel wire), and stainless steel wire are its three main operating sectors.

Additionally, the firm intends to strengthen and expand its market position in the future fiscal year by adding a new sector of specialty wires through its planned Dadri factory.

Bansal Wire IPO review

Anand Rathi Research

With a market capitalisation of ₹40,078.3 million following the issuing of equity shares and a market cap-to-sales ratio of 1.62 times its FY24 profits, the brokerage claims that the company's P/E ratio is 50.8 times based on its FY24 earnings.

With more than 3,000 SKUs of high carbon steel, mild steel (low carbon), and stainless steel wires, the firm and its subsidiary, Bansal Steel & Power Limited, provide one of India's largest product portfolios for steel wire. The subsidiary offers around 1,500 SKUs, compared to about 2,000 SKUs offered by the company. We advise the IPO to receive a "Subscribe - Long Term" grade based on these considerations.

Also Read: Bansal Wire IPO opens for subscription: 10 key risk factors investors must know before investing

Sushil Finance

The brokerage claims that in FY 22, FY 23, and FY 24, the business has maintained a year-over-year client retention rate of 64.74%, 66.06%, and 68.49%, respectively. It sells around 86% of its output domestically and exports the remaining portion. The US and European wire markets account for over 70% of export earnings. The business has a sizable market share in India.

Over the course of FY22–24, the revenue CAGR was around 5.9%. For the year that ended in FY24, the company's EBITDA margin was 6.04%, while its PAT margin was 3.19%. producing a 21.19% and an 18.46% return on equity, respectively, for FY24.

Using diluted EPS for FY 24 ( ₹6.18), the business is requesting a PE multiple of 41.4x on the higher end of the pricing band.32.72x is the industry average. For FY24, the P/BV is 7.72x. With a medium- to long-term perspective, investors may choose to subscribe for the issue given all the variables, risks, possibilities, and high value.

Bansal Wire Industries IPO details

Bansal Wire IPO, which is worth ₹745 crore, comprises a fresh issue of 29,101,562 equity shares. There's no offer-for-sale (OFS) component.

The firm's memorandum of association outlines its core objectives, as well as incidental and ancillary goals that support them. These goals allow the company to: (i) carry out its current commercial operations; and (ii) carry out the projects that are suggested to be funded with the net proceeds.

The book running lead managers of the Bansal Wire IPO are SBI Capital Markets Limited and Dam Capital Advisors Ltd (formerly Idfc Securities Ltd), with Kfin Technologies Limited serving as the issue's registrar.

Also Read: Bansal Wire Industries IPO: Delhi-based firm garners ₹223 crore from anchor investors

Bansal Wire Industries IPO GMP today

Bansal Wire IPO GMP today is +60. This indicates Bansal Wire Industries share price were trading at a premium of ₹60 in the grey market, according to investorgain.com.

Bansal Wire Industries expected listing price was ₹316 per share, 23.44% more than the IPO price of ₹256, taking into account the top end of the IPO pricing band and the existing premium on the grey market.

Investor willingness to pay over the issue price is indicated by the “grey market premium.”

Also Read: Bansal Wire IPO fully booked on first day of bidding on strong retail, NII demand. Check GMP, subscription status, more.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.