Bansal Wire Industries Lists at 39% Premium at Rs 356 per share on NSE!

Bansal Wire Industries Limited specializes in manufacturing stainless steel wire, debuted on the Indian stock market today.

The stock of Bansal Wire Industries settled at Rs 352.05 per share on the BSE, representing an impressive 37.52% premium over the final issue price of Rs 256 per share. Additionally, on the NSE, the company’s shares opened at Rs 356 per share, indicating a gain of 39.06%. The market capitalization on the BSE stands at around Rs 5511.55 crore.

IPO Proceeds 

The company proposes to use the Net Proceeds from the Issue for the following purposes:

• Repayment or prepayment of all or a portion of certain outstanding borrowings availed by our Company and our Subsidiary.
• Funding the working capital requirements of the company and
• General corporate purposes.

Business Overview

Incorporated in December 1985, Bansal Wire Industries Limited specializes in manufacturing stainless steel wire. The company is divided into three key segments: high-carbon steel wire, low-carbon steel wire (mild steel wire), and stainless steel wire. With a product range spanning over 3,000 varieties, from thin to thick gauges, Bansal Wire serves a diverse customer base exceeding 5,000 clients across various industries. Its extensive market presence includes operations throughout India and exports to over 50 countries, establishing itself as a prominent global industry participant.

Subscription details 

As of July 5, 2024, the IPO was subscribed 62.76 times. The public issue saw a subscription rate of 14.37 times in the retail category, 153.86 times in the QIB category, and 54.21 times in the NII category.

The IPO price band was Rs 243 and Rs 256, with a face value of Rs 5 per share and a lot size of 58 shares. The total size of the company’s IPO was Rs 745 crore, and the final share issue price was fixed at Rs 256 each.

Conclusion 

The crucial question that arises in everyone’s mind is whether to hold onto the shares or book profits. Investors who applied for listing gains only have already earned 39% on the listing day itself and can choose to book the profit generated or watch for at least the first 15 minutes and then set a stop-loss at the day’s low price. On the other hand, investors with a higher risk appetite may opt to hold the shares for the medium to long term, which could prove to be beneficial.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.