Bansal Wire IPO

Bansal Wire Industries Limited stands as India’s premier stainless steel wire manufacturer and holds the position of being the second-largest steel wire manufacturer by volume in the nation. In Fiscal 2023, the company produced 72,176 MTPA of stainless steel wire and 206,466 MTPA of steel wire, capturing 20% and approximately 4% of the market share, respectively, according to CRISIL Report.

Since its inception in 1985, Bansal Wire Industries has been committed to excellence, providing top-quality products and establishing a distinctive reputation within the steel wire sector. With a 38-year legacy, the company boasts a diverse portfolio that serves a variety of sectors including automotive, general engineering, infrastructure, hardware, consumer durables, power and transmission, agriculture, and the auto replacement market.

A vast range of over 3,000 stock-keeping units (SKUs), the most extensive variety among all steel wire manufacturers in India, with sizes from as thin as 0.04 mm to as thick as 15.65 mm. A diversified customer base exceeding 5,000 across various sectors, fostering a robust network that supports sustained growth.

Bansal Wire Industries operates across three main segments: high-carbon steel wire, mild steel wire (low-carbon steel wire), and stainless steel wire. Additionally, the company is poised to enhance its market footprint with the introduction of a new specialty wire segment through its forthcoming plant in Dadri. This expansion aims to further broaden its product offerings and strengthen its market position in the forthcoming fiscal year.

Bansal Wire IPO Strengths

• Bansal Wire Industries employs a risk management strategy that ensures no single customer accounts for more than 5% of total sales and no one sector accounts for more than 25% of sales.
• The company adopts a “Cost Plus model” operational strategy, effectively insulating it from fluctuations in commodity prices.
• Expertise in steel wire manufacturing since 1938, spanning three generations.
• Exports to over 50 countries, enhancing international footprint.

Bansal Wire IPO Risks

• Limited 35-45-day inventory makes operations vulnerable to supply chain disruptions.
• Dependence on four facilities in Uttar Pradesh and Haryana risks regional disruptions.
• Potential non-renewal of leasehold facilities could disrupt operations and impact finances.
• Overseas market distribution relies on a few representatives; changes could impact operations and financial health.