Wondering Bansal wire V/S Emcure Pharmaceuticals IPO – which one will give you good returns? Always investors dilemma but we are here to provide you guidance on which IPO might be the one for you. Bansal Wire is offering new shares, while Emcure is putting some extra shares up for sale. You can subscribe to both starting on Wednesday, July 3, and they’ll be open until July 5. It’s a great chance to explore new investment options!
Let’s dive deep into the financial analysis and important insights to understand more!
Key Insights of IPO
Bansal Wire Industries‘ ₹745 crore IPO is a fresh issue of 29,101,562 equity shares, with no offer for sale (OFS) component, according to the Red Herring Prospectus.
Emcure Pharma’s IPO includes a fresh share sale for ₹800 crore and an offer-for-sale (OFS) of 1.14 crore equity shares by its promoters and current shareholders. The selling stockholders in the OFS include promoters Satish Ramanlal Mehta, Sunil Rajanikant Mehta, Namita Vikas Thapar, and Samit Satish Mehta.
| Particulars | Bansal wire Industries | Emcure Pharmaceuticals |
| Face value | 5 Rs | 10 Rs |
| Issue Price | 243-256 | 960-1008 |
| Lot Size | 58 shares | 14 shares |
| Fresh Issue size | Up to 745 Cr. | 800 Cr. |
| Offer for sale shares | – | 1,36,78,839 shares |
Utilization of Funds
The usage from public offerings will be used for following purposes:
Bansal wire Industries
The company’s major goals are outlined in its memorandum which suggests carrying out its continuous commercial activities and carry out projects that are advised to be funded with net revenues.
Emcure Pharmaceuticals
The proceeds from the new issuance will be used to repay and/or prepay certain outstanding borrowings by the company, as well as for general corporate reasons.
Furthermore, the funds from the OFS will benefit the selling stockholders.
Book running lead Managers and Registrar
SBI Capital Markets Limited and Dam Capital Advisors Ltd (previously Idfc Securities Ltd) are the book running lead managers of the Bansal Wire Industries IPO, while Kfin Technologies Limited is the issue’s registrar.
The book-running lead managers for the offering are Kotak Mahindra Capital Company, Axis Capital, JP Morgan India, and Jefferies India, with Link Intime India acting as the registrar for Emcure’s IPO.
Grey-market premium
The grey market is an unofficial marketplace where shares trade prior to their IPO allotment and continue until the listing day. Many investors track the Grey Market Premium (GMP) to determine the expected listing price.
The shares of Emcure Pharma IPO are trading at a premium of ₹255 in the grey market premium (GMP) on Saturday, June 29 just days before the offer opens for registration which is almost 25-26% of issue price.
As reported by Investorgain.com, Bansal Wire Industries’ share price is currently trading at a ₹65 premium in the gray market.
Bansal wire V/S Emcure Pharmaceuticals Distribution Metrics
15% – public offering of Bansal Wire Industries have been allocated for non-institutional institutional investor
50% of the shares are reserved for qualified institutional buyers (QIB)
35% of the offer is designated for retail investors.
Emcure Pharma
50% – qualified institutional bidders (QIBs)
15%- for non-institutional investors
35 %- retail investors.
Growth, Revenue and Exports of Bansal wire V/S Emcure Pharmaceuticals
Bansal Wires Industries vs Emcure Pharmaceuticals
With 14 foreign representatives Bansal wire exports to a variety of countries, including Bangladesh, Brazil, France, Germany, Israel, Italy, the Netherlands, South Korea, South Africa, Sri Lanka, Turkey, the United Kingdom, the United States of America, and Vietnam.
In fiscal 2024, the company’s export turnover was ₹283.94 crore. The US and European markets accounted for almost 70% of total exports.
Between FY 2022 and FY 2024, the company’s total income increased at a CAGR of 5.86% to ₹2,470.89 crore. The company’s PAT increased by 17.28% from ₹57.29 crore in fiscal 2022 to ₹78.8 crore in fiscal 2024, while EBITDA grew by 14.87% from ₹113.15 crore in fiscal 2022 to ₹149.31 crore in fiscal 2024.
Emcure Pharmaceuticals
Emcure Pharma is an Indian pharmaceutical producer that develops, manufactures, and sells a wide range of pharmaceutical products across multiple therapeutic areas on a global basis.
This R&D-driven company provides a unique product portfolio which has touched diverse spectrum of target markets in over 70 countries, with a strong presence in Europe, Canada, and India.
In the Indian pharmaceutical scene, Emcure is the 13th largest firm in domestic sales for fiscal year 2024. It also has the fourth largest market share within its covered markets and leads in the gynecology and HIV antiviral categories.
EPL’s domestic sales have grown rapidly, accounting for about half of its total income in 2024 and surpassing the broader Indian pharmaceutical market with a compound annual growth rate (CAGR) of 9.73% during the last four years.
Conclusion
In short, if you’re weighing the IPOs of Bansal Wire and Emcure Pharmaceuticals, your choice boils down to your risk preference and investment goals.
Bansal Wire offers steady, low-risk growth in the industrial sector, making it ideal for conservative investors.
Meanwhile, Emcure Pharmaceuticals presents a high-growth opportunity in the booming healthcare field, but with higher risk due to regulatory hurdles.
To balance risk and reward, you might consider investing in both. Just make sure to do your research and consult a financial advisor to align your choices with your financial goals.
