The initial public offering of Vidya Wires Ltd was completely subscribed just a few hours after it opened for subscription on Wednesday, and by the end of the day, Vidya Wires IPO subscription status was 2.89 times.
Vidya Wires IPO GMP today is ₹5. Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Vidya Wires is indicated at ₹57 apiece, which is 9.62% higher than the IPO price of ₹52.
The initial public offering of winding and conductivity products maker, Vidya Wires opened for subscription on Wednesday, December 3, and closes on Friday, December 5. Vidya Wires IPO price band has been fixed in the range of ₹48 to ₹52 per equity share of face value of Re 1.
Vidya Wires announced on Tuesday that it has raised ₹90 crore from anchor investors ahead of the launch of its initial public offering for public subscriptions.
As per a notice published on BSE’s website, among the anchor investors allocated shares are Bandhan Mutual Fund (MF), LIC MF, Bank of India MF, Maybank Securities, Alchemy Emerging Leaders of Tomorrow Series 2, and MAIQ Growth Scheme.
Vidya Wires is recognized as one of the top manufacturers of winding and conductivity products catering to various critical industries and applications. Their product offerings include precisely crafted Enameled Wires, Enameled Copper Rectangular Strips, Paper Insulated Copper Conductors, Copper Busbars, Bare Copper Conductors, Specialized Winding Wires, PV Ribbons, and Aluminum Paper Covered Strips, among other products.
Vidya Wires IPO has set aside up to 50% of the shares for Qualified Institutional Buyers (QIB), a minimum of 15% for Non-Institutional Investors (NII), and at least 35% of the offering is designated for Retail Investors.
Tentatively, the share allotment basis for Vidya Wires IPO will be finalized on Monday, December 8. The company will process refunds on the same day, and shares will be credited to the demat accounts of allottees on Tuesday, December 9. Shares of Vidya Wires IPO are expected to be listed on BSE and NSE on Wednesday, December 10.
Vidya Wires IPO subscription status
Vidya Wires IPO subscription status was 2.89x on day 1. The retail portion was subscribed 4.02x, and NII portion has been booked 3.42x, Qualified Institutional Buyers (QIBs) portion received 47% bids.
The company has received bids for 12,50,98,560 shares against 4,33,34,009 shares on offer, at 17:00 IST, according to data on BSE.
Vidya Wires IPO GMP today
Vidya Wires IPO GMP today is ₹5. Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Vidya Wires is indicated at ₹57 apiece, which is 9.62% higher than the IPO price of ₹52.
Considering the grey market activities over the past seven sessions, today’s IPO GMP shows a downward trend and is anticipated to decline further. The lowest GMP recorded is ₹5.00, while the highest stands at ₹10, according to experts.
‘Grey market premium‘ indicates investors’ readiness to pay more than the issue price.
Vidya Wires IPO Review
Canara Bank Securities stated that the company is currently valued at an appealing 20x PE compared to the approximately 45x average of its peers. Although there are risks such as fluctuations in raw material costs, high working capital demands, and low cash conversion rates, Vidya Wires has achieved impressive revenue, EBITDA, and PAT CAGRs of 21.23%, 36.86%, and 37.87% from FY2023 to FY2025. With plans for capacity expansion and the introduction of new production lines by March, the company is strategically positioned to boost growth and strengthen its presence in the market.
“We recommend investors to SUBSCRIBE to this issue,” said the brokerage.
Swastika Investmart noted that Vidya Wires is valued at approximately 50% of the average P/E for the industry. Even when factoring in the “small-cap discount” or risks associated with liquidity, the valuation disparity remains significant. Investors may want to think about subscribing with a medium to long-term view.
Anand Rathi mentioned that post-implementation, they intend to offer around 18 products to existing and prospective customers. The leadership is also concentrating on rapidly expanding sectors like electric vehicles and renewable energy, diversifying their product range to cater to the demands of these industries while strengthening their global footprint.
“Considering these aspects, the IPO seems reasonably priced and is assigned a rating of “Subscribe – Long Term,” said the brokerage.
SBICAP Securities pointed out that the introduction of new products is expected to bring improved margins, potentially resulting in higher profitability in the future. Furthermore, favorable industry trends, such as the growing acceptance of electric vehicles, funding in AI data centers, and substantial growth in renewable energy capacity, are likely to enhance growth prospects in the upcoming years. When assessing the IPO in comparison to its closest competitors, it seems to be reasonably priced.
“We recommend investors to SUBSCRIBE to the issue at the cut-off price for a long-term investment horizon,” said the brokerage.
Vidya Wires IPO details
The firm’s initial public offering includes a fresh issuance of shares worth ₹274 crore, alongside an Offer For Sale (OFS) of 50.01 lakh shares valued at ₹26 crore.
The company intends to utilize the net proceeds to support capital expenditures for new projects within its subsidiary ALCU, reduce existing debt, and cover general corporate expenses.
Pantomath Capital Advisors Private Limited and IDBI Capital Markets & Securities Limited are serving as the lead managers for the offering, while MUFG Intime India Pvt. Ltd. acts as the registrar for the issuance.
Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.
