Bansal Wire IPO: GMP, subscription status, review, allotment, listing date, other details. Apply or not?

Bansal Wire IPO: The initial public offering (IPO) of Bansal Wire Industries Limited, a leading player in the steel wire industry, opened for bidding on 3rd July 2024 and will remain open till 5th July 2024. So, the Indian primary market investors have one day to apply for the Bansal Wire IPO. Looking at the Bansal Wire IPO subscription status, the public issue has received a strong response from the primary market investors. As bidding for the public issue ends today, the grey market has gone bullish on the initial offer. According to stock market observers, shares of Bansal Wire Limited are available at a premium of ₹65 in the grey market today.

Bansal Wire IPO GMP today

As mentioned above, Bansal Wire IPO grey market premium (GMP) today is ₹65, ₹6 higher than Thursday's Bansal Wire IPO GMP of ₹59. Market observers said that the rise in Bansal Wire IPO GMP can be attributed to two primary reasons — strong Bansal Wire IPO subscription status and positive bias in the secondary market sentiments. They said that the Indian stock market is expected to maintain the uptrend, and hence, we can expect some more rise in Bansal Wire IPO GMP today.

Bansal Wire IPO subscription status

By 3:12 PM on day 3 of bidding, the book build issue was booked 41.68 times, the retail portion of the public issue was filled 12.38 times, the NII segment was subscribed 48.16 times, and the QIB portion was booked 88.09 times.

Bansal Wire IPO review

Giving a 'subscribe' tag to Bansal Wire IPO, Rajan Shinde, Research Analyst at Mehta Equities, said, "On valuation parse at the upper band of ₹256/-, the issue is asking for a market cap of ₹4008/- Cr. Based on FY 2024 earnings and fully diluted post-IPO paid-up capital, the company is asking for a PE of 50.86x, which appears fully priced compared to its listed industry peers. However, the company is in a consolidation phase, which may lead to healthy top-line growth in FY 2025. While the margin profile is expected to remain steady at 6-7%, we anticipate a significant increase in the bottom line, primarily driven by the financial cost of the repayment of outstanding borrowings from the IPO proceeds."

"Given the robust growth projections for the Indian steel wire industry, driven by multi-segmental infrastructure growth and the expansion of the automotive industry, which is expected to grow at a CAGR of 8-10% from FY 2023-28, we believe Bansal Wire Industries Ltd is well-positioned for sustained growth. Hence, looking at all parameters, we recommend our investors to "SUBSCRIBE" the Bansal wires Industries Ltd IPO for a long-term perspective. Additionally, we expect Bansal to generate decent listing gains over and above 25% on the issue price," Shinde added.

Unveiling the investment strategy in Bansal Wire IPO, Arun Kejriwal, Founder of Kejriwal Research and Investment Services, said, “The company has offered its issue at slightly higher valuations, but due to the overcrowded primary and the secondary market, one can expect a decent listing gain from the book build issue. However, the issue may see a sharp correction after the profit-booking trigger in the secondary market. So, one should book profit and exit post-listing. In the company's roadshow, promoters said that its capacity would double next year, but it would take two to three years to reflect in its balance sheet. So, one can think of buying the stock at discounted levels for three to four years after booking profit post-listing.”

Bansal Wire IPO details

Tentative Bansal Wire IPO allotment date is 6th July 2024. However, in case, share allocation is announced on saturday this week, one can expect the finalization of share allocation on 8th July 2024 i.e. on Monday next week. In the wake of the ‘T+3’ listing rule, most likely Bansal Wire IPO listing date is 10th July 2024 i.e. on Wednesday next week.

Disclaimer: The views and recommendations above are those of individual analysts, experts, and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.