Bansal Wire Industries IPO Subscription Status

Tanushree Jaiswal

Last Updated: 5th July 2024 - 07:54 pm

Bansal Wire Industries IPO - Day-3 Subscription at 59.57 times

As of 7.11 pm on 05th July 2024, out of the 214.61 lakh shares on offer in the IPO (excluding anchor portion), Bansal Wire Industries saw bids for 12,785.24 lakh shares. This implies an overall subscription of 59.57X at a macro level. The granular break-up of subscriptions as of the close of Day-3 of the Bansal Wire Industries IPO was as follows:

Employees (N.A.)

QIBs (146.05X)

HNI / NII (51.46X)

Retail (13.64X)

The subscriptions were led by the QIB investors followed by the HNI investors and the Retail investors in that order. QIB bids and NII bids typically gather most of the momentum on the last day, and that would be the case in this issue also in the case of QIB bids. Both the QIB and the NII bids pick momentum on the last day since that is when the bulk HNI funding bids, corporate bids and the bulk QIB bids come in. Here are the details of the category-wise subscription. The overall subscription excludes anchor portion.

Investor Category	Subscription (times)	Shares Offered	Shares Bid For	Total Amount (₹ in Crore)
Anchor Investors	1.00	87,30,468	87,30,468	223.50
Employee Quota	1.00	N.A.	N.A.	N.A.
QIB Investors	146.05	61,31,687	89,55,04,630	22,924.92
HNIs / NIIs	51.46	45,98,766	23,66,60,068	6,058.50
Retail Investors	13.64	1,07,30,453	14,63,59,056	3,746.79
Total	59.57	2,14,60,906	1,27,85,23,754	32,730.21

Data Source: BSE

The IPO is open up to July 05th, 2024, at which point we will know the final subscription status of the IPO. As of today, the IPO subscription status is already updated as of the end of Day-3 of the IPO, which is the closing of the IPO. The IPO has closed for subscription and the table above reflects the final subscription levels for the IPO as at close.

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 issue closed for subscription on 05th July 2024 and the credits to the demat account to the extent of shares allotted will happen by the close of 09th July 2024 under ISIN (INE0B9K01025).

Bansal Wire Industries IPO - Day-2 Subscription at 5.72 times

As of 5.25 pm on 04th July 2024, out of the 214.61 lakh shares on offer in the IPO (excluding anchor portion), Bansal Wire Industries saw bids for 1,228.13 lakh shares. This implies an overall subscription of 5.72X at a macro level. This implies an overall subscription of 1.76X at a macro level. The granular break-up of subscriptions as of the close of the Day- 2 of the Bansal Wire Industries IPO was as under:

Employees (N.A.)

QIBs (0.09X)

HNI / NII (12.16X)

Retail (6.18X)

The subscriptions were led by the HNI / NII followed by the Retail investors and the QIB investors in that order. QIB bids and NII bids typically gather most of the momentum on the last day, and that would be the case in this issue also in the case of QIB bids. Both the QIB and the NII bids pick momentum on the last day since that is when the bulk HNI funding bids, corporate bids and the bulk QIB bids come in. Here are the details of the category-wise subscription. The overall subscription excludes anchor portion.

Investor Category	Subscription (times)	Shares Offered	Shares Bid For	Total Amount (₹ in Crore)
Anchor Investors	1.00	87,30,468	87,30,468	223.50
Employee Quota	1.00	0	0	0.00
QIB Investors	0.09	61,31,687	5,80,116	14.85
HNIs / NIIs	12.16	45,98,766	5,59,12,464	1,431.36
Retail Investors	6.18	1,07,30,453	6,63,20,390	1,697.80
Total	5.72	2,14,60,906	12,28,12,970	3,144.01

Data Source: BSE

The IPO is open up to July 05th, 2024, at which point we will know the final subscription status of the IPO. As of today, the IPO subscription status is only updated as of the end of Day-2 of the IPO.

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 issue closes for subscription on 05th July 2024 and the credits to the demat account to the extent of shares allotted will happen by the close of 09th July 2024 under ISIN (INE0B9K01025).

Bansal Wire Industries IPO - Day-1 Subscription at 1.76 times

As of 5.20 pm on 03rd July 2024, out of the 214.61 lakh shares on offer in the IPO (excluding anchor portion), Bansal Wire Industries saw bids for 378.34 lakh shares. This implies an overall subscription of 1.76X at a macro level. The granular break-up of subscriptions as of the close of the Day-1 of the Bansal Wire Industries IPO was as under:

Employees (N.A.)

QIBs (0.01X)

HNI / NII (2.44X)

Retail (2.47X)

The subscriptions were led by the Retail investors followed by the HNI / NII investors and the QIB investors in that order. QIB bids and NII bids typically gather most of the momentum on the last day, and that would be the case in this issue also in the case of QIB bids. Both the QIB and the NII bids pick momentum on the last day since that is when the bulk HNI funding bids, corporate bids and the bulk QIB bids come in. Here are the details of the category-wise subscription. The overall subscription excludes anchor portion.

Investor Category	Subscription (times)	Shares Offered	Shares Bid For	Total Amount (₹ in Crore)
Anchor Investors	1.00	87,30,468	87,30,468	223.50
Employee Quota	N.A.	N.A.	N.A.	N.A.
QIB Investors	0.01	61,31,687	84,448	2.16
HNIs / NIIs	2.44	45,98,766	1,12,42,836	287.82
Retail Investors	2.47	1,07,30,453	2,65,06,754	678.57
Total	1.76	2,14,60,906	3,78,34,038	968.55

Data Source: BSE

The IPO is open up to July 05th, 2024, at which point we will know the final subscription status of the IPO. As of today, it is only the updated as of the end of Day-1 of the IPO.

Bansal Wire Industries - Share Allocation Across Categories

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. Let us focus on the anchor allotment portion ahead of the Bansal Wire Industries IPO, which saw the anchor bidding opening and also closing on 02nd July 2024. Post the anchor allocation, here is how the overall allocation looked.

Category of Investors	Allocation of Shares Under IPO
Reservation for Employees	No quota reserved for employees
Anchor Allocation	87,30,468 shares (28.92% of the total IPO offer size)
QIB Shares Offered	61,31,687 shares (20.31% of the total IPO offer size)
NII (HNI) Shares Offered	45,98,766 shares (15.23% of the total IPO offer size)
Retail Shares Offered	1,07,30,453 shares (35.54% of the total IPO offer size)
Total Shares Offered	3,01,91,374 shares (100.00% of total IPO offer size)

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.

About Bansal Wire Industries 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.

Next Steps in the Bansal Wire Industries IPO

The issue opens for subscription on 03rd July 2024 and closes 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 new age pharma 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).

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