This IPO has been responding strongly for the past 2 days, indicating bumper profits in the gray market

Bansal Wire IPO: The initial public offer (IPO) of steel wire manufacturing company Bansal Wire Industries is in high demand. The IPO was oversubscribed 5.72 times on Thursday, the second day of bidding. The initial share sale saw bids for 12,28,12,970 shares against an offer of 2,14,60,906 shares, according to NSE data. The non-institutional investors segment was subscribed 12.16 times while retail individual investors (RIIs) were subscribed 6.18 times. The share of qualified institutional buyers (QIBs) received only nine per cent subscription. Let us tell you that Bansal Wire Industries said on Tuesday that it has raised over Rs 223 crore from anchor investors.

In gray market Rs. 58 profit

Under this IPO Rs. 745 crore of new equity shares issued and no offer for sale (OFS). The issue price for the IPO has been fixed at Rs 243-256 per share. As for the gray market premium of the IPO, it is Rs. is 58. In this context the listing of IPO is Rs. Can be done in 314. This represents a premium of 22.66%. The proceeds from the IPO will be used to repay debt, meet the company’s working capital requirements and for general company operations.

About the company

Let us tell you that the company has four manufacturing facilities in the National Capital Region (NCR) of India. Out of which three are in Ghaziabad (UP) and one in Bahadurgarh (Haryana). It has a dealer distribution network in 22 states and six union territories. According to the RHP (Red Herring Prospectus) of the company, the total revenue of this company increased to ₹ 2470 crore from FY22 to FY24. As for Ebitda, it stood at ₹ 149.31 crore. At the same time, the profit increased to ₹78.80 crore.

When is the listing expected?

DAM Capital Advisors (formerly IDFC Securities) and SBI Capital Markets are the book running lead managers to the Bansal Wire IPO. Whereas, Kfin Technologies is the registrar for this issue. The company’s shares will be listed on both BSE and NSE with the tentative listing date being Wednesday, July 10.

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