The initial public offering (IPO) of Vidya Wires Solutions, a leading manufacturer of copper conductors, is set to close for public subscription today, December 5. The three-day bidding process, which began on Wednesday, December 3, has attracted significant investor attention, with the issue being subscribed nearly nine times by the end of the second day.
Vidya Wires IPO: Key Details and Timeline
The company is raising a total of ₹300.01 crore through this public issue. This comprises a fresh issue of 5.27 crore shares aggregating to ₹274.00 crore and an offer for sale (OFS) of 0.50 crore shares worth ₹26.01 crore. Investors can bid for shares in the price band of ₹48 to ₹52 per equity share.
The lot size for the IPO is fixed at 200 shares. This means retail investors, who have a 35% reservation, need a minimum investment of ₹14,976 at the upper price band of ₹52 per share. The remaining allocation is 50% for qualified institutional buyers (QIBs) and 15% for non-institutional investors (NIIs).
The basis of allotment is expected to be finalised on Monday, December 8. Successful allottees will likely receive their shares on Tuesday, December 9, with refunds also being processed the same day. The equity shares of Vidya Wires are scheduled to make their stock market debut on Wednesday, December 10 on both the BSE and NSE.
Strong Investor Sentiment and Subscription Data
Investor appetite for the IPO appears robust. As of the end of Day 2, the overall issue was subscribed 8.94 times. The retail investor portion led the charge, being subscribed 12.45 times, while the NII portion was booked 10.80 times. The QIB portion had received 1.39 times bids. In total, bids were received for 36.09 crore shares against the 4.03 crore shares on offer.
Prior to the public opening, the company had already secured ₹90 crore from anchor investors on December 2. Notable participants included Bandhan Mutual Fund, Bank of India MF, LIC MF, Maybank Securities, MAIQ Growth Scheme, and Alchemy Emerging Leaders of Tomorrow Series 2.
A key indicator of market sentiment, the grey market premium (GMP), stood at ₹5.5 on December 5. This suggests the stock is likely to list at around ₹57.5 per share, a premium of approximately 10.58% over the upper end of the IPO price band.
Brokerage Views and Company Fundamentals
Brokerage firm Angel One has assigned a 'Subscribe for Long Term' rating to the IPO. It notes the company's valuation is attractive compared to peers and is supported by strong sectoral demand from electric vehicles (EVs), renewables, and electrical infrastructure.
Analysts have highlighted the company's strong fundamentals. "Vidya Wires is a 40-year-old profitable copper conductor manufacturer supplying to giants like ABB, Siemens, and Crompton," said Abhinav Tiwari, Research Analyst at Bonanza. He added, "FY25 PAT grew 59%, ROE stands at 25%, and valuation at 23x PE is reasonable." While acknowledging risks like commodity price volatility, the fundamental outlook is considered strong.
The net proceeds from the fresh issue will be used for funding capital expenditure for new projects in subsidiary ALCU, repayment of debt, and general corporate purposes.
About Vidya Wires Solutions
Vidya Wires ranks among India's largest producers of winding and conductivity solutions for critical industrial applications. The company manufactures a wide array of precision-engineered products including enamelled wires, copper busbars, bare copper conductors, and PV ribbons.
These products are integral to sectors like energy generation and transmission, electric motors, clean energy infrastructure, electric mobility, and railway networks. Its listed peers include Precision Wires India, Ram Ratna Wires, and Apar Industries.
