The initial public offering (IPO) of Vidya Wires Ltd, a leading manufacturer of winding and conductivity products, witnessed strong investor appetite on its opening day. The issue was fully subscribed within hours of opening on Wednesday, December 3, and by the end of the day, the overall subscription stood at an impressive 2.89 times the offered shares.
Subscription Breakdown and Grey Market Sentiment
The enthusiasm was led by retail investors, whose portion was subscribed 4.02 times. The Non-Institutional Investors (NII) category followed closely, booked 3.42 times, while the Qualified Institutional Buyers (QIB) portion received 47% bids. In total, bids were received for 12,50,98,560 shares against the 4,33,34,009 shares on offer.
Meanwhile, the grey market premium (GMP) for the Vidya Wires IPO today is ₹5. This indicates the premium investors in the unofficial market are willing to pay over the issue price. Considering the upper end of the IPO price band at ₹52 per share, this GMP suggests an estimated listing price of around ₹57 per share, which would be a 9.62% gain on the listing day. Market observers note that the GMP has shown a downward trend recently from a high of ₹10.
IPO Details, Anchor Investors, and Fund Utilization
The three-day IPO, which closes on Friday, December 5, has a price band fixed between ₹48 to ₹52 per equity share. The offer comprises a fresh issue of shares worth ₹274 crore and an Offer for Sale (OFS) of 50.01 lakh shares worth ₹26 crore.
Ahead of the public subscription, the company successfully raised ₹90 crore from anchor investors on Tuesday. Prominent names in the anchor book included Bandhan Mutual Fund, LIC MF, Bank of India MF, Maybank Securities, Alchemy Emerging Leaders of Tomorrow Series 2, and MAIQ Growth Scheme.
The net proceeds from the fresh issue will be utilized for capital expenditure in its subsidiary ALCU, for repaying existing debt, and for general corporate purposes.
Brokerage Views and Long-Term Prospects
Several brokerages have given a "Subscribe" recommendation for the issue, particularly for long-term investors. Canara Bank Securities highlighted that the company is valued at an attractive 20x PE compared to its peers' average of around 45x. They noted impressive revenue and profit growth, with plans for capacity expansion by March.
Swastika Investmart pointed out that Vidya Wires is valued at roughly 50% of the industry's average P/E, leaving a significant valuation gap even after accounting for risks. Anand Rathi and SBICAP Securities echoed the positive sentiment, citing the company's focus on high-growth sectors like electric vehicles (EVs), renewable energy, and AI data centers, which are expected to drive future demand for its products.
The share allotment is tentatively scheduled to be finalized on Monday, December 8, with refunds initiated the same day. Successful allottees will see shares credited to their demat accounts on Tuesday, December 9. The equity shares of Vidya Wires Ltd are expected to list on both the BSE and NSE on Wednesday, December 10.
