Bansal Wire IPO shares to debut at stock markets today; what GMP signals for listing

Shares of Bansal Wire Industries are set to make its Dalal Street debut today, that is, Wednesday, July 10. If one goes by the signals grey market premium (GMP), which have remained mostly stable, the company is likely to deliver a decent listing pop to the investors on debut.

 

Ahead of its listing, shares of Bansal Wire Industries were commanding a grey market premium (GMP) of Rs 70 per share suggesting a listing of around 27 per cent to the investors. However the premium in the unofficial market stood at Rs 76 apiece, when the issue had closed for the bidding.

 

After receiving strong demand from the market participants across categories, Bansal Wire Industries was subscribed 59.57 times. The issue is set to be listed on Wednesday, July 10 2024 expecting a premium of approximately 30 per cent on its issue price of Rs 256, said Parth Shah, Research Analyst at StoxBox.

 

"The company is aiming to expand its reach to other regions, that is, south and east to garner additional market share. On the financial front, the issue seems to be fairly valued. Thus, we advise the market participants who have been allotted with the shares to hold the shares from a medium to long term perspective," he said.

 

The IPO of Bansal Wire Industries was open for bidding between July 03 and July 05. The New Delhi-based company had offered its shares in the fixed price band of Rs 243-256 per share with a lot size of 58 shares. The company raised a little about Rs 745 crore via its primary offering, which was entirely an offer for sale of 2,91,01,562 equity shares.

 

The issue saw a solid bidding and was overall subscribed 59.57 times. The quota for qualified institutional bidders (QIBs) was booked a stellar 146.05 times The quota for non-institutional investors was subscribed a whopping 51.46 times. The portion reserved for retail investors saw bidding for13.64 times during the three-day bidding process.

 

Bansal Wire Industries is a stainless-steel wire manufacturing company. The metal wire industry is a highly competitive and fragmented market, said Amit Goel, Co-Founder & Chief Global Strategist at Pace 360. "We expect a listing at around ₹330-340 per share, resulting in a listing gain of around 30 per cent. Post-listing, investors should book profits," he said.

 

Bansal Wire is set for a positive listing on the stock exchanges. The IPO garnered a robust subscription of 62.76 times, reflecting strong investor interest and is likely to list around 30 per cent premium over the issue price, said Shivani Nyati, Head of Wealth at Swastika Investmart. "Bansal Wire's strong fundamentals contribute to the optimistic outlook," she said.

 

Bansal Wire Industries, incorporated in December 1985, is a stainless-steel wire manufacturing company. The company operates in three main segments including high carbon steel wire, low carbon steel wire (mild steel wire), and stainless-steel wire. The company makes over 3,000 different types of steel wire products.

 

DAM Capital Advisors (Formerly IDFC Securities) and SBI Capital Markets were the book running lead managers of the Bansal Wire IPO, while Kfin Technologies served as the registrar for the issue.

 

Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.