On August 8, 2024, Bansal Wire executed the important acquisition of the remaining 23.85% stake in Bansal Steel & Power Limited. This was earlier announced to the market as a Share Purchase Agreement dated August 5, 2024, entered into by the company. As a result, the ownership of Bansal Wire, in effect, increased to 100% at a go, making it now a fully-owned subsidiary.
This would help Bansal Wire completely control Bansal Steel & Power and may further help the company maintain more detailed and refined processes, which could better operational aspects.
Current Share Price and Market Performance
On Friday, the shares of Bansal Wire opened at ₹353 on the Bombay Stock Exchange. It was a volatile day, with the stock touching an intra-day high of ₹360.60 and a low of ₹350.95 before finally closing at ₹352.35, down 0.01% from the previous close of ₹352.40.
The stock is still consolidating after a slight period of consolidation signalled by low volatility rates, which might be followed by a burst out period to come later when there will be positive breakouts this week.
Share Price Target for 2024
Investec, a leading financial services group, gives a rating of “Buy” for Bansal Wire with a target price of ₹440. They retain an optimistic view on account of the strong market position and commendable strategy-execution abilities of the company. Bansal Wire is likely to witness high growth in profit mainly because of two new projects.
These projects need more money upfront than their usual work, but they should make a lot more money. Investec thinks the company’s EBITDA will grow by over 40% each year from FY24 to FY27. They also expect the post-tax Return on Capital Employed to stay in the high teens. The good market conditions and chances to grow make Bansal Wire’s current price look like a good deal for investors.
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Bansal Wire’s IPO Journey
Bansal Wire: The public issue of Bansal Wire was open for subscription on November 29, 2021 and closed on December 1, 2021. The ₹500-crore public issue of the wire maker was subscribed by 1.42 times on the back of strong response from institutional investors.
Its shares were listed on the Bombay Stock Exchange and National Stock Exchange on July 10, 2024. The stock opened with a big premium of 39%. It opened at ₹356 on the NSE against an issue price of ₹256 and ₹352 on the BSE.
Recent acquisition and strong market performance, along with positive growth estimates, signal that the company will continue to perform well in the years to come. Considering the ongoing initiatives and market conditions, Bansal Wire seems to be one of the most promising companies to invest in.
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