Bharat Wire Ropes lists at 5% premium on debut

NEW DELHI: Maharashtra-based Bharat Wire Ropes made a decent debut on BSE by climbing over 5 per cent in early trade on Friday over its issue price of Rs 45.

The T-group stock got listed at Rs 47.35, a premium of 5.2 per cent over the issue.

By 10.05 AM, the scrip was trading 5.11 per cent higher at Rs 47.30. There were buy orders of 57,5131 shares on the exchange, against sell orders of 203668 shares.

The Rs 70-crore IPO had run between March 18 and March 22 and was subscribed 1.21 times.

The company intends to use the proceeds to set up a project of 66,000 MTPA wire ropes at MIDC Zone, Chalisgaon, in the Jalgaon district of Maharashtra.The project cost is Rs 507.18 crore, for which the company has tied up with seven banks to the tune of Rs 330 crore.

The company’s existing steel wire ropes manufacturing facility has an installed capacity of 12,000 MTPA and is located at Atgaon.

The company has a pyrolysis plant with an installed capacity of 1,260 MTPA at Chalisgaon, Maharashtra, for the production of oil, which is used as fuel in its current manufacturing process.

At present, the promoters hold 87.34 per cent stake in the company, which may come down to 57.11 per cent after the IPO.

The company has reported total revenue of Rs 76.72 crore for FY15 compared with Rs 82.29 crore reported for FY14. However, the profit was up at Rs 1.97 crore in FY15 compared with 1.50 crore in the previous financial year.

For the eight-month period ended November 30, 2015, the company’s net sales stood at Rs 43.74 crore, Ebitda at Rs 5.74 crore and profit after tax (PAT) at Rs 1.08 crore.

The company is focusing on increasing its presence in international markets. At present, the company has a presence in countries such as the US, Germany, Spain, Qatar, Egypt, the UAE, South Africa, Australia, Nepal, Uganda, Singapore, Mauritius, and Oman.

The company has over 29 years of experience in the wire rope business and has a diversified client base, which includes clients such as ONGC, Coal India, L&T and KEC International.