The Bansal Wire Industries IPO is open for bidding, and today (July 4th, 2024) marks the second day for investors to participate. Here’s a breakdown of what you need to know to decide if this IPO is a good fit for you.
As of yesterday, the first day of bidding, the IPO had received bids for 1.76 times the shares offered. This means investor interest is positive, but the offering is not yet fully subscribed. Here’s a category-wise breakdown:
- Retail Investors: Retail investors, which include individual investors like you, showed strong interest, subscribing to their portion 2.47 times.
- Non-Institutional Investors (NIIs): These are high net-worth individuals and corporate investors who subscribed to their portion 2.44 times.
- Qualified Institutional Buyers (QIBs): This category, which includes institutions like mutual funds, subscribed minimally at 0.01 times. QIB participation often picks up on the last day, so keep an eye on updates.
Should You Invest?
This decision depends on your investment goals and risk tolerance. Here are some factors to consider:
- Company Financials: Research Bansal Wire Industries’ financial health, future growth prospects, and the overall industry outlook.
- IPO Price: The price band is set between ₹243 and ₹256 per share. Consider the company’s valuation compared to similar companies.
- Grey Market Premium (GMP): The GMP is currently ₹60, indicating a potential listing price of ₹316 per share (based on the upper price band). However, GMP is unofficial and not a guarantee of future performance.
- Bidding Ends: July 5th, 2024
- Lot Size: Minimum 58 shares and multiples thereof
- Subscription Platform: You can apply through your broker
Remember: IPOs involve risk. The share price may not rise as expected after listing.
Tips for New Investors
- Consult a Financial Advisor: A financial advisor can help you assess your risk tolerance and guide you based on your investment goals.
- Do Your Research: Read the IPO prospectus carefully and understand the company’s business model and financials.
- Invest What You Can Afford: Don’t invest money you can’t afford to lose.
Final Takeaway
The Bansal Wire Industries IPO has generated interest from retail and non-institutional investors. While QIB participation is low so far, it might pick up today. Evaluate your risk tolerance and investment objectives before making a choice.