Bansal Wire Industries Limited IPO

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The company, along with its subsidiary, Bansal Steel & Power Limited, provides an extensive range of over 3000 stock-keeping units (SKUs) across three primary segments: high carbon steel wire, mild steel wire (low carbon steel wire), and stainless steel wire. Specifically, their company offers approximately 2000 SKUs, while their subsidiary contributes around 1500 SKUs, with about 500 SKUs being common to both entities.

Product Segments

i. High Carbon Steel Wire:
ii. Mild Steel Wire (Low Carbon Steel Wire):
iii. Stainless Steel Wire:

Distribution Network

Their extensive dealer distribution network ensures a pan-India presence, covering 22 states and six union territories. They have particularly strong revenue from operations in the northern and western states of India, generating 65.61%, 67.78%, and 64.80% of revenue from Delhi, Haryana, Maharashtra, and Uttar Pradesh for the fiscal years 2022, 2023, and 2024, respectively.

Market Position and Industry Benchmarking
The steel wires industry is highly fragmented, with the top 10 manufacturers contributing approximately 22% of the overall production. Their company contributes 2% to the overall production, while other unbranded larger, medium, and small manufacturers account for 75% of the total production.

Product Range

Their product range includes:
i. High Carbon Steel Wires: For springs, ropes.
ii. Mild Steel Wires (Low Carbon Steel Wires): Various applications.
iii. Stainless Steel Wires: Various applications.
iv. Cold Heading Quality Wires: For specific industrial uses.
v. Cable Armoring Wires and Strips: For protective applications.
vi. Galvanized Steel Wires: In high/mild steel wire (low carbon steel wire) with a wide range of zinc coating.
vii. Profile/Shaped Wires: In various steel grades and different cross-sections, from as thin as 0.04 mm to as thick as 15.65 mm.

Conclusion

Their company, supported by a strong subsidiary, diverse product offerings, extensive manufacturing capabilities, and a wide-reaching distribution network, is well-positioned to capitalize on growth opportunities within the steel wires industry. Their focus on expanding into specialty wires further reinforces their commitment to innovation and market expansion, ensuring sustained growth and competitive advantage in the upcoming fiscal years.

Objects of the Bansal Wire Industries Limited IPO:

The company proposes to use the Net Proceeds from the Issue for the following purposes: i. Repayment or prepayment of all or a portion of certain outstanding borrowings availed by their Company and their Subsidiary; ii. Funding the working capital requirements of the company and iii. General corporate purposes.
DRHP of Bansal Wire Industries Limited IPO
RHP of Bansal Wire Industries Limited IPO

Bansal Wire Industries Limited IPO Details:

Open Date: Jul 03 2024
Close Date: Jul 05 2024
Total Shares: 29,101,562
Face Value: ₹ 5 Per Equity Share
Issue Size: 745.00 Cr.
Lot Size: 58 Shares
Issue Price: ₹ 243 - 256 Per Equity Share
Listing At: NSE,BSE
Listing Date: Jul 10 2024

Promoters And Management:

Arun Gupta is the Chairman and Whole-Time Director of the Company. He has cleared his secondary schooling from Dhanpatmal Virmani Sr. Sec. School, Delhi. He has been associated with the Company since December 11, 1985 and has over 38 years of experience in the steel wire industry. Pranav Bansal is the Managing Director and Chief Executive Officer of the Company. He has cleared his secondary and senior secondary schooling from Manav Sthali School, New Delhi. He has been associated with the Company since 2018 and has over five years of experience in the steel wire industry. Umesh Kumar Gupta is a Whole-time Director and Chief Operating Officer of the Company. He has attended the course of bachelor in arts (honours) in hindi from Zakir Husain College Evening Classes, University of Delhi. Prior to joining the Company, he was previously associated with Bansal High Carbons Private Limited. He has over nine years of experience in the steel wire industry.

Financials of Bansal Wire Industries Limited IPO:

A. Balance Sheet
Particular (In Million) Mar-22 Mar-23 Mar-24
Equity Share Capital 91.04 91.04 637.27
Reserves 2,139 2,734 3,586
Borrowings 4,132 4,222 6,811
Trade Payables 206 127 591
Other Liabilities 388 316 1,014
Total Liabilities 4,725 4,665 8,416
Net Block 1,156 1,155 2,293
Capital Work in Progress 4 379 2,119
Investments 225 0 11
Other Assets 55 504 496
Total NC Assets 1,440 2,037 4,918
Receivables 2,488 2,524 3,579
Inventory 2,647 2,439 3,136
Cash & Bank 4 8 44
Other Assets 376 482 962
Face value 5 5 5
B. Profit & Loss Statement
Particular (In Million) Mar-22 Mar-23 Mar-24
Sales 21,984 24,130 24,660
Raw Material Cost 17,727 19,985 20,167
Change in Inventory -118 -179 -347
Employee Cost 465 600 735
Other Expenses 2,845 2,672 2,660
Other Income 67 96 49
EBITDA 1,131 1,147 1,493
EBITDA Margin 5.15% 4.75% 6.05%
Depreciation 84 91 135
Interest 266 240 288
Profit before tax 781 816 1,102
Tax 208 216 314
Net profit 573 599 788
NPM (%) 2.60% 2.47% 3.19%
C. Cash Flow Statement
Particular (In Million) Mar-22 Mar-23 Mar-24
Cash From Operating Activity
Profit From Operation 1,129 1,146 1,491
Receivable -421 -36 -3,579
Inventory -673 208 -3,136
Payable 33 -78 591
Other WC Items -13 96 -581
Working Capital Changes -1,075 190 -6,705
Direct Taxes -170 -311 -156
Net Cash Inflow from Operating Activity -115 1,025 -5,369
Cash from Investing Activity
Fixed assets purchased -189 -465 -4,707
Fixed assets sold 1 0 181
Investments purchased -225 0 -11
Investment sold -8 -3 -38
Other investing items 229 -405 -384
Net cash inflow from investing activities -192 -872 -4,959
Cash from Financing Activity
Proceeds from shares 61.33 0 3,823.42
Proceeds from borrowings 509 90 6,811
Intrest paid fin -266 -240 -288
Net Cash Flow -2 3 18

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
Bansal Wire Industries Limited 2466 79 5.03 50.9 256 4,008
Rajratan Global Wire Limited 890 72 14.15 41.5 586 2,976
DP Wires Limited 1,003 36 23.43 19.6 458 709
Bedmutha Industries Limited 812 21 6.49 36.4 237 763
* All the data is as per FY24.

Recommendation on Bansal Wire Industries Limited IPO:

Review and Recommendation of Bansal Wire Industries by team IZ is 6/10. 1. Bansal Steel & Power Limited, offers an extensive range of over 3,000 SKUs (Stock Keeping Units) in three main categories: i. high carbon steel wire, ii. mild steel wire (low carbon steel wire), iii. stainless steel wire. Specifically, their Company provides approximately 2,000 SKUs, while their Subsidiary offers 1,500 SKUs, with around 500 SKUs overlapping between the two. 2. Market Presence They have a comprehensive network ensuring pan-India presence across 22 states and six union territories through their dealer distribution network. 3. Export Operations They export their products to several countries through 14 global representatives, covering markets in Bangladesh, Brazil, France, Germany, Israel, Italy, the Netherlands, South Korea, South Africa, Sri Lanka, Turkey, the United Kingdom, the United States, and Vietnam. 4. Industry Position and Competitive Landscape The steel wires industry in India is highly fragmented. The top 10 manufacturers contribute around 22% of the overall production, with their Company accounting for 2% of the total production. Tata Wires is the largest player in the industry, offering a wide product portfolio across various wire types, including low carbon, high carbon, stainless steel, and specialty wires. 5. The Revenue has Increased from Rs.2198 Crores in FY22 to Rs.2466 Crores in FY24. 6. The EBITDA has Increased from 113 Crores in FY22 to 149 Crores in FY24. 7. The PAT has Increased from 57 Crores in FY22 to 79 Crores in FY24. 8. As per FY24, CFO/EBITDA is 0.99, and EPS is 5.03, 9. Market Capitalization is 4008 Crores and P/E is 50.9x based on FY24.

Lead Manager of Bansal Wire Industries Limited IPO:

  1. DAM Capital Advisors Ltd (Formerly IDFC Securities Ltd)
  2. SBI Capital Markets Limited

Registrar of Bansal Wire Industries Limited IPO:

  1. Kfin Technology Private Limited

Company Address:

Bansal Wire Industries Limited F-3, Main Road Shastri Nagar, Delhi-110052 Phone: 011-2365 1891 Email: investorrelations@bansalwire.com Website: https://bansalwire.com/

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