Shares of Bansal Wire Industries will make their debut at the bourses on Wednesday. Bansal Wire, an 100 per cent fresh issue, was subscribed 59.57 times.
The ₹745-crore initial public offering came out with a price band of ₹243-256 and the IPO price has been fixed at ₹256. The QIBs, who remained lukewarm during the first two days, stepped up their bidding on the last day, as their quota was subscribed 146 times. The portion reserved for HNIs saw aggressive bidding of 51.46 times, followed by retail investors at 13.64 times.
Rajan Shinde, Research Analyst, Mehta Equities Ltd, expects Bansal to generate decent listing gains over and above 25 per cent.
Bansal Wire on Tuesday raised ₹223.50 crore from anchor investors by allocating 87.30 lakh shares to 18 funds at ₹256 apiece. Among them included SBI Mutual Fund (MF), HDFC MF, Kotak Mahindra MF, Tata Capital MF, Edelweiss MF, Bandhan MF, and SBI Life Insurance Company.
Proceeds of the IPO will be used for the payment of debt, to support the working capital requirements of the company, and for general corporate purposes.
Bansal Wire Industries is manufacturer and exporter of steel wires. It operates in three broad segments -- high-carbon steel wire, mild steel wire (low-carbon steel wire), and stainless steel wire -- producing a diverse range of over 3,000 wire products in various sizes. The company employs a flexible pricing strategy to manage fluctuations in material costs.
Also, the company said it plans to add a new segment of specialty wires through its upcoming plant in Dadri, which will help it grow and expand its market presence in the upcoming fiscal.
SBI Capital Markets and DAM Capital Advisors were the book-running lead managers to the issue while KFin Technologies was registrar.