Bansal Wire Industries Limited Files Drhp With Sebi for Rs.745 Crore Ipo
Bengaluru, 23rd January 2024 : Bansal Wire Industries Limited, 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. (Source: CRISIL Report) has filed DRHP with market regulator SEBI on January 18, 2024, for an IPO (Initial Public Offer).
The offer comprises of Fresh Issue of Equity Shares of face value of ₹ 5 /- each aggregating up to ₹ 7,450 million [₹ 745 crore].
The company proposes to utilize the net proceeds from IPO towards Repayment or prepayment of all or a portion of certain outstanding borrowings availed by the Company and its Subsidiary; Funding the working capital requirements of the Company and General corporate purposes.
Bansal Wire Industries was incorporated in the year 1985 and since incorporation, the company has consistently delivered quality products, creating a niche identity in the steel wire industry. With a legacy of 38 years, company takes pride in its diversified portfolio, catering to a wide range of sectors such as automotive, general engineering, infrastructure, hardware, consumer durables, power and transmission, agriculture and auto replacement.
Company has installed capacity of 259,000 MTPA of mild steel, high carbon and stainless steel wires at its existing four manufacturing facilities located at (i) Facility I: B-35, Rajender Nagar Industrial Area, Mohan Nagar, Ghaziabad; (ii) Facility II: B-3 Loni Industrial Area, Ghaziabad; (iii) Facility III: B-5 & B-6 Loni Industrial Area, Ghaziabad and (iv) Facility IV: 43KM, Milestone, Delhi-Rohtak Road, Asaudha, Bahadurgarh, Jhajjar, Haryana. The company is also setting up India’s largest single-location steel wire manufacturing facility at Dadri, India, amongst the largest in Asia.
The company markets and sell its products under the brand name ‘BANSAL’ which has a strong reputation in the market as a trusted brand since incorporation. It operates in three broad segments, i.e., high carbon steel wire, mild steel wire (low carbon steel wire) and stainless steel wire and we will be also adding a new segment of specialty wires through its upcoming plant in Dadri, which will help the company to grow and expand its market presence in upcoming fiscals.
Bansal Wire has a significant global footprint and are exporting its products to more than 50 countries. (Source: CRISIL Report) With 14 global representatives covering countries like Bangladesh, Brazil, France, Germany, Israel, Italy, Netherlands, South Korea, South Africa, Sri Lanka, Turkey, the United Kingdom, United States of America and Vietnam.
SBI Capital Markets Limited and DAM Capital Advisers Limited are the Book Running Lead Managers to the Issue.
Bansal Wire Industries Limited is proposing, subject to, receipt of requisite approvals, market conditions and other considerations, to make an initial public issuance of its Equity Shares and has fi led the DRHP dated January 18, 2024 with SEBI on January 19, 2024. The DRHP shall be available on the website of the Company at www.bansalwire.com, SEBI at www.sebi.gov.in, as well as on the websites of the BRLMs, i.e. SBI Capital Markets Limited and DAM Capital Advisors Limited at www.sbicaps.com and www.damcapital.in, respectively and the websites of National Stock Exchange of India Limited and BSE Limited at www.nseindia.com and www.bseindia.com, respectively. Any potential investor should note that investment in equity shares involves a high degree of risk and for details relating to such risk, please see “Risk Factors” of the RHP, when available. Potential investors should not rely on the DRHP for making any investment decision. Specifi c attention of the investors is invited to “Risk Factors” beginning on page 30 of the DRHP.
The Equity Shares offered in the Issue have not been and will not be registered under the U.S. Securities Act or any state securities laws in the United States, and unless so registered, may not be offered or sold within the United States, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the U.S. Securities Act and in accordance with any applicable U.S. state securities laws. Accordingly, the Equity Shares are being offered and sold outside the United States in ‘offshore transactions’ in reliance on Regulation S under the U.S. Securities Act and the applicable laws of the jurisdictions where such offers and sales are made. The Equity Shares have not been and will not be registered, listed or otherwise qualifi ed in any other jurisdiction outside India and may not be offered or sold, and Bids may not be made by persons in any such jurisdiction, except in compliance with the applicable laws of such jurisdiction.