Bansal Wire IPO Allotment Status

How to check Bansal Wire IPO allotment status

IPO allotment status online is an internet facility that is provided by the BSE (formerly Bombay Stock Exchange) and by the registrars on their website. Many of the brokers also provide direct connectivity to the database. However, in the absence of any connectivity, one option you always have is to use one of these options. That means; you can either check your allotment status on the BSE website or the IPO registrar, KFIN Technologies Limited (formerly Karvy Computershare). Here are the steps.

Bansal Wire IPO allotment date - July 08, 2024.

Checking the Bansal Wire IPO allotment status on BSE website

This is a facility available to all mainboard IPOs, irrespective of who the registrar to the issue is. To access the allotment status on BSE India; click on the IPO allotment link below.

https://www.bseindia.com/investors/appli_check.aspx 

Once you reach the page, here are the steps to follow.

• Under Issue Type – Select Equity Option
• Under Issue Name – Select Bansal Wire Industries  from the drop down box
• Enter the Application Number exactly as in the acknowledgement slip
• Enter the PAN (10-digit alphanumeric) number
• Once this is done, you need to click on the Captcha to verify that you are not a robot
• Finally click on the Search Button

In the past, while checking the allotment status on the BSE website, it was necessary to input the PAN number and the application Number. However, now BSE has modified the requirements and it is sufficient if you enter any one of these parameters. There is one more point to note. Even if the company appears in the dropdown, the allotment status will only be available for you to check after the basis of allotment is finalized. So, the company will be available in the drop down just around 08th July 2024.

To complete your checking process, once you click on the SUBMIT button, the allotment status will be displayed on the screen in front of you informing about the number of shares of Bansal wire IPO allotted into your demat account. You can save a screenshot for future reference and for reconciling with the demat credit on 09th July 2024

Checking the Bansal Wire IPO allotment status on KFIN Technologies

Visit the website of KFIN Technologies Ltd, which has been appointed as the registrar for the issue. You can access their website for IPO status by clicking on the link below:

https://ris.kfintech.com/ipostatus/

There are three things to remember. Firstly, you can just click on the hyper link given above and directly go to the allotment checking page. The second option, in case you are not able to click on the link, is to copy the link and paste in your web browser. Thirdly, there is also a way to access this page via the home page of KFIN Technologies Ltd but that pathway is slightly more complex as the website is designed more as a B2B website, so you can avoid that.
Here you are given the choice to select 5 servers viz.

Link 1, Link 2, Link 3, Link 4, and Link 5. There is nothing to be confused, as these are just server backups in case one of the servers is experiencing too much traffic. You can select any of these 5 servers and in case you are finding problems accessing one of the servers, then try the other one. There is no difference, which server you select.

A small thing to remember here. Unlike on the BSE website, where the names of all IPOs are there on the drop-down menu, the registrar will only provide of the IPOs managed by them and where the allotment status is already finalized. Also, with the radio buttons you have a choice.

You can either choose to see all IPOs or just recent IPOs. Choose the latter option, as that reduces the length of the list of IPOs you need to search through. Once you click on Recent IPOs, the dropdown will only show the recent active IPOs, so once the allotment status is finalized, you can select Bansal Wire Industries from the drop-down box. In this case, the name of Bansal Wire Industries will be available on the dropdown from 08th July 2024, once the basis of allotment is finalized.

There are 3 options. You can either query the allotment status based on Application Number or Demat Account (DPID-Client ID combination) or by PAN.

1) To Query by Application Number, check the appropriate box and follow these steps.

•    Enter the Application Number as it is
•    Enter the 6-digit Captcha Code
•    Click on Submit button
•    Allotment Status gets displayed on screen
In the past, the first step was to select Application Type (ASBA or Non-ASBA) before inputting your application number. Now, that step has been done away with.

2) To Query by Demat Account, check the appropriate box and follow these steps.

•    Select the depository (NSDL / CDSL)
•    Enter the DP-ID (Alphanumeric for NSDL and Numeric for CDSL)
•    Enter the Client-ID
•    In the case of NSDL, the Demat account is 2 strings
•    In the case of CDSL, the Demat account is just 1 string
•    Enter the 6-digit Captcha Code
•    Click on Submit button
•    Allotment Status gets displayed on screen

3) To Query by PAN, check the appropriate box and follow these steps.

•    Enter the 10-digit PAN number
•    It will be available on your PAN card or your last filed tax return copy
•    PAN is of 10 characters; sixth to ninth characters are digits and rest are alphabets
•    Once you enter the PAN number, Enter the 6-digit numeric Captcha Code
•    Click on Submit button
•    Allotment status gets displayed on screen

You may note that at times the captcha code may not be clear. You have the choice of toggling for more options in such cases.

It is always advisable to retain a saved screenshot of the allotment status output for future reference. The same can be tallied with the demat account credit subsequently after the demat allotment is completed by the end of 09th July 2024. The demat credit to the extent of shares allotted in the IPO would be visible under (ISIN - INE0B9K01025) in your demat account mandate provided in the IPO application. Nowadays, the refunds are issued and the demat allocation is also done on the same day, so there is no time lag and you can check both the data points from demat account and bank account on the same day.

What determines the chances of allotment in the IPO?

Broadly, there are 2 factors that determine the chances of an investor in getting an IPO. The first is the number of shares available under each of the categories, depending on which category you choose to invest in. Let us first focus on the category allocation. The entire anchor allocation was made at the upper end of the price band of ₹256 per share. This includes the face value of ₹5 per share plus a share premium of ₹251 per share, taking the anchor allocation price to ₹256 per share. Post the anchor allocation, here is how the overall allocation looked.

Data Source: Company RHP / BSE

Here it must be noted that the 87,30,468 shares allocated to the anchor investors on 02nd July 2024, were actually reduced from the original QIB quota; and only the residual amount would be available to QIBs in the IPO. That change has been reflected in the table above, with the QIB IPO portion reduced to the extent of the anchor allocation. As a result, the QIB quota has reduced from 49.23% before the anchor allocation to 20.31% after the anchor allocation. The overall allocation to QIBs includes the anchor portion, so the anchor shares allotted has been deducted from the QIB quota for the purpose of the public issue.

Let us now turn the second part of how the subscriptions for the IPO added up at the close of the IPO on 05th July 2024.

Data Source: BSE

As can be seen, the oversubscription at 59.57X is fairly high and does lower the chances of allotment. However, one thing to note is that SEBI rules for retail allocation are designed in such a way that maximum number of retail investors get at least the minimum 1 lot allotment. So, applying in the names of all your family members can improve your chances of allotment. In the above case, the oversubscription of the retail portion is relatively modest while that of the HNI portion is at relatively higher level.

Hence, the chances of allotment are relatively good for retail, but relatively lower for the HNI / NII category. However, it is always best to await the final answer once the basis of allotment is finalized, and then check the status online based on the modus operandi explained above.

Next Steps in the Bansal Wire Industries IPO

The issue opened for subscription on 03rd July 2024 and closed for subscription on 05th July 2024 (both days inclusive). The basis of allotment will be finalized on 08th July 2024 and the refunds will be initiated on 09th July 2024. In addition, the demat credits are expected to also happen on 09th July 2024 and the stock will list on 10th July 2024 on the NSE and the BSE. Bansal Wire Industries will test the appetite for private sector input stocks in India. The credits to the demat account to the extent of shares allotted will happen by the close of 09th July 2024 under ISIN (INE0B9K01025).

Investors would do well to remember that the level of subscription is very material as it determines the chances of getting allotment. Normally, higher the subscription ratio, lower the chances of allotment and vice versa. In this case, the subscription levels have been fairly strong in the QIB segment and the HNI / NII segment, but much lower and modes in the retail segment. Investors in the IPO need to assess their chances of allotment accordingly. The final status will be known once the basis of allotment is finalized and uploaded for you to check. You can apply the above allotment checking process flow after the basis of allotment is finalized.

Highlights of the Bansal IPO

The IPO of Bansal Wire Industries will be open from July 03rd, 2024 to July 05th, 2024; both days inclusive. The stock of Bansal Wire Industries has a face value of ₹5 per share and the price band for the book building IPO has been set in the range of ₹243 to ₹256 per share.

The IPO of Bansal Wire Industries will be purely a fresh issue of shares with no offer for sale (OFS) component. The fresh issue brings in fresh funds into the company, but is also EPS and equity dilutive. The OFS is just a transfer of ownership; and hence neither EPS nor equity dilutive. 

The fresh issue portion of the IPO of Bansal Wire Industries comprises the issue of 2,91,01,562 shares (291.02 lakh shares approximately), which at the upper price band of ₹256 per share will translate into a fresh issue size of ₹745.00 crore. Since there is no offer for sale, the fresh issue will also double up as the overall size of the IPO. Therefore, the total IPO of Bansal Wire Industries will comprise of the fresh issue of 2,91,01,562 shares (291.02 lakh shares approximately) which at the upper end of the price band of ₹256 per share aggregates to total issue size of ₹745.00 crore. The IPO of Bansal Wire Industries will be listed on the NSE and the BSE on the IPO mainboard.

The IPO entirely comprises only of a fresh issue or shares. The fresh funds will be used for repaying / prepaying some of its outstanding debts and also the debt of its subsidiary companies. In addition, the funds will also be applied towards working capital needs and also partially for general corporate purposes. The promoters of the company are Arun Gupta, Anita Gupta, Pranav Bansal, and Arun Kumar Gupta HUF. The promoters currently have 95.78% stake in the company, which will get diluted post the IPO to 77.98%. The IPO will be lead managed by SBI Capital Markets and DAM Capital Advisors (formerly IDFC Securities) ; while KFIN Technologies Ltd will be the IPO registrar.