In the grey market, the IPO is trading at a premium of Rs 5, or 9.6%, above the top of its price band, indicating it could list at around Rs 57 per share. This shows positive investor interest, though the grey market premium has dropped slightly from 11.54%.
Vidya Wires IPO subscription status
On the first day, the IPO saw strong investor demand, data showing it was oversubscribed 2.89 times overall.Retail Individual Investors (RIIs): Subscribed 4.02 times for the 2.17 crore shares allocated to them, showing strong demand from small investors.
Non-Institutional Investors (NIIs): Subscribed 3.42 times on 2.53 crore shares offered.
Qualified Institutional Buyers (QIBs): Displayed moderate interest, with only 47% subscription on the 1.22 crore shares reserved for them.
Overall, the subscription pattern points to strong enthusiasm, particularly from retail and non-institutional investors, setting a positive tone for the IPO’s remaining days.
Vidya Wires IPO GMP today:
In the grey market, the IPO is currently trading at a premium of Rs 5, or 9.6%, above the upper end of its price band, indicating a potential listing price of around Rs 57 per share. This suggests positive investor sentiment ahead of the listing, although the grey market premium (GMP) has eased slightly from an earlier level of 11.54%.
Note: Grey market premium (GMP) reflects unofficial trading and may not directly correspond to the actual listing price.
Vidya Wires IPO details: price band, structure, and key dates
The issue comprises a fresh issue of Rs 274 crore and an offer for sale (OFS) worth Rs 26.01 crore. The IPO price band is set at Rs 48 to Rs 52 per share .
Under the OFS, promoters Shyamsundar Rathi and Shailesh Rathi will sell 50.01 lakh shares. Notably, the promoters’ weighted average acquisition cost is just Rs 0.25 per share, highlighting significant value creation ahead of the listing.
Key dates for the IPO are: allotment finalisation on December 8, refund initiation on December 9, and share credit and listing on the BSE on December 10.
Vidya Wires IPO valuations: Attractive vs Industry peers
Vidya Wires appears attractively priced. Based on FY25 diluted earnings per share, the IPO’s price-to-earnings (P/E) ratio is 20.39x at the upper price band and 18.82x at the lower band.
This places the issue at a notable discount to the industry average P/E of 47.82x for the same period. The company also showcases consistent profitability, with a three-year weighted average return on net worth of 22.69%.
About Vidya Wires
Vidya Wires is a prominent manufacturer of winding and conductivity products, supplying critical components to sectors such as power transmission, electrical equipment, and general engineering. Its product portfolio includes enameled copper wires, PV ribbons, copper busbars, and paper-covered strips.
The company’s financial performance remains strong, with FY25 operating revenue reaching Rs 1,295 crore. The power and transmission segment contributed 48.06% of this revenue, followed by 28.58% from the electrical sector and 10.20% from general engineering—highlighting a well-diversified and resilient business model.
Subscribe for long-term gains
Analysts said growing investments in the power sector are raising demand for electrical wires and cables. The government’s focus on energy security, renewable sources, and rural electricity access has led to a surge in power generation, transmission, and distribution projects, necessitating robust electrical infrastructure.
“Vidya Wires is strategically positioned to capitalize on this growing demand. As one of India’s leading manufacturers of winding and conductivity products, the company’s diverse product range and strong industry relationships place it in a favorable position to benefit from the expanding wire and cable market. Investors may consider the IPO as a potential long-term investment opportunity,” said Master Capital Services.
Lead managers
The IPO is being jointly managed by Pantomath Capital and IDBI Capital, with MUFG Intime India serving as the registrar.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
Source link
