Bharat Wire Ropes settles tad higher to IPO price

Shares of Bharat Wire Ropes settled at Rs 45.40 on BSE, a premium of 0.89% compared with the initial public offer price of Rs 45 on its debut on the bourses today, 1 April 2016.

The S&P BSE Sensex lost 72.22 points or 0.28% to settle at 25,269.64.

The stock debuted at Rs 47.35, a premium of 5.22% compared with its initial public offer (IPO) price. The stock hit a high of Rs 47.50 and a low of Rs 45 in intraday trade. On BSE, 16.97 lakh shares were traded in the counter.

Bharat Wire Ropes' IPO had received good response from retail and non-institutional investors. The IPO was oversubscribed.

The company reported a net profit of Rs 1.08 crore on revenue from operations of Rs 43.74 crore for eight months ended November 2015. The company reported net profit of Rs 1.97 crore on revenue from operations of Rs 76.72 crore for the year ended 31 March 2015.

Bharat Wire Ropes' existing wire ropes manufacturing facility has an installed capacity of 12,000 tonnes per annum (tpa) at Atgaon in Maharashtra. It also has a pyrolysis plant with an installed capacity of 1,260 tpa at Chalisgaon for production of oil used as fuel in the current manufacturing process. The company proposes to set up a Rs 507 crore project to produce 66,000 tonnes per annum (tpa) of steel wire ropes at the MIDC zone at Chalisgaon, district Jalgaon, Maharashtra.

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