Bansal Wire Industries IPO: The good and the bad

Published: 03rd July 2024

About the company

Incorporated in 1985, Bansal Wire is a steel wire maker operating in three main segments: high-carbon steel wire, mild-carbon steel wire, and stainless steel wire.

IPO details

Total IPO size (Rs cr) 745 Offer for sale (Rs cr) - Fresh issue (Rs cr) 745 Price band (Rs) 243-256 Subscription dates July 3-5, 2024 Purpose of issue Loan repayment and working capital requirement

Post IPO

M-cap (Rs cr) 4007.8 Net worth (Rs cr) 1167.4 Promoter holding (%) 77.97 Price-to-earnings ratio (P/E) 50.9 Price-to-book ratio (P/B) 3.4

Financial History

Key financials (Rs cr) 2Y CAGR (%) FY24 FY23 FY22   Revenue 5.9 2466 2413 2198   EBIT 15.6 131 96 98   PAT 17.3 79 60 57   Net worth 37.6 422 283 223   Total debt 28.4 681 422 413

Key ratios

Ratios 3Y average FY24 FY23 FY22 ROE (%) 24.9 21.2 23.7 29.9 ROCE (%) 14.7 14.5 14.3 15.4 EBIT margin (%) 4.6 5.3 4 4.5 Debt-to-equity 1.7 1.6 1.5 1.9

The Good

Bansal Wire has a diversified customer base of over 5,000 customers and it retained almost 90 per cent of its top 300 customers during FY22-FY24.

The bad

Its concentrated manufacturing capacity and the highly competitive market are among key risks that plague its prospects. Click on the link below to read the company's complete risk report.