Bansal Wire Industries shares experienced significant volatility, declining up to 5.2% during trading as the shareholder lock-in period expired, making a substantial portion of equity tradable in the market. The steel wire manufacturer's stock closed at ₹292.55 per share, representing a 3.08% decrease from the previous closing price of ₹301.85, with the company maintaining a market capitalisation of ₹4,580.04 crore.

Lock-in Period Expiry Impact

The expiry of the shareholder lock-in period has made approximately 20% of the company's equity tradable, with around 3.13 crore shares worth approximately ₹945 crore potentially entering the market. While this development raises short-term supply and volatility risks for the stock, the company's fundamental business metrics remain unchanged, and future price movements will largely depend on the actual selling pressure from these newly tradable shares.

Financial Performance Analysis

Bansal Wire Industries demonstrated mixed financial results in Q2FY26, showing strong revenue growth alongside margin pressures. The company's financial performance reflects both operational expansion and cost management challenges.

The revenue surge of 28% to ₹1,055 crore indicates healthy demand and strong execution capabilities. However, net profit declined 5% to ₹38 crore, suggesting margin pressure likely stemming from higher operational costs or unfavourable product mix despite the increased sales volume.

Operational Scale and Capacity

The company's operational infrastructure demonstrates significant scale and efficiency across its manufacturing network. With an 85-year legacy in the steel wire manufacturing sector, Bansal Wire Industries operates five manufacturing facilities with a combined installed capacity exceeding 6.18 lakh MTPA, currently utilising 74% of this capacity.

Expansion and Growth Initiatives

Bansal Wire Industries has outlined clear expansion plans backed by substantial capacity additions and product diversification. The company added 360 kt capacity at Dadri and 60 kt in H1FY26, demonstrating ongoing commitment to scaling operations.

New product introductions include 9,000 tonnes of IHT wire and 20,000 tonnes of steel tyre cord, expanding the company's product portfolio to serve diverse industrial applications. The planned ₹150 crore investment at Sanand represents a significant growth initiative, expected to add 90,000 tonnes capacity by December 2027, further strengthening the company's market leadership position.

Business Overview

Bansal Wire Industries operates as a leading steel wire manufacturer serving automotive, infrastructure, and industrial sectors. The company's diversified product portfolio, strong capacity scale, and extensive customer base of over 5,000 clients provide a stable foundation for continued growth and market expansion across multiple industrial segments.

Bansal Wire Industries shares are expected to attract significant attention on Friday, January 9, as the stainless steel wire manufacturer's six-month and longer-term shareholder lock-in period comes to an end. This development will make a substantial portion of the company's equity available for trading in the open market.

Lock-in Expiry Details

The expiry will free up approximately 31.3 million shares for trading, representing nearly 20% of the company's total outstanding equity. According to Nuvama Alternative and Quantitative Research, the value of these shares is estimated at about ₹945 crore, based on Thursday's closing price.

It is important to note that the end of a shareholder lock-in does not automatically mean all eligible shares will be sold in the open market. The shares simply become available for trading, and actual selling decisions remain with individual shareholders.

Company Profile and Market Position

Bansal Wire Industries manufactures and exports steel wires across three key business segments. The company has established itself as a dominant player in India's steel wire manufacturing sector.

The company holds the distinction of being India's second largest steel wire manufacturer overall and the largest stainless steel wire manufacturer in the country. This dominant market position has enabled Bansal Wire Industries to largely maintain its margins over the years, despite experiencing significant fluctuations in raw material costs.

Shareholding Structure

According to the shareholding pattern for the September 2025 quarter, promoters held a 77.99% stake in Bansal Wire Industries. This shareholding level is marginally above the minimum public shareholding requirement of 75%, indicating a concentrated ownership structure.

Stock Performance

Shares of Bansal Wire Industries Ltd. ended Thursday's trading session 1.18% lower at ₹301.90 per share. Despite the recent decline, the stock continues to trade approximately 18% above its issue price of ₹256 per share, reflecting positive investor sentiment since its market debut.