Vidya Wires IPO Now Open: Should you subscribe? Anil Singhvi shares opinion

Vidya Wires IPO: The initial public offering of Vidya Wires opened for subscription on Wednesday, December 3, in a largely steady primary market environment. The issue will close on Friday, December 5. The company has set the price band at Rs 48–Rs 52 per share for a face value of Re 1.

Anchor investors commit Rs 90 crore

The company raised Rs 90 crore from anchor investors on Tuesday ahead of the public issue. According to the BSE notice, Bandhan MF, LIC MF, Bank of India MF, Maybank Securities, Alchemy Emerging Leaders of Tomorrow Series 2, and MAIQ Growth Scheme participated in the anchor book.

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Company overview

Vidya Wires is a key manufacturer of winding and conductivity products, catering to essential industries. Its portfolio includes enameled wires, copper rectangular strips, paper-insulated conductors, copper busbars, bare copper conductors, specialized winding wires, PV ribbons, and aluminium paper-covered strips.

IPO structure and investor allocation

The public issue comprises a fresh issue worth Rs 274 crore and an Offer For Sale of 50.01 lakh shares totalling Rs 26 crore. Not more than 50 per cent of the issue is reserved for Qualified Institutional Buyers, at least 15 per cent for Non Institutional Investors, and at least 35 per cent for retail investors.

Key dates for investors

The basis of allotment is expected to be finalised on Monday, December 8. Refunds will also be initiated on the same day. Shares are likely to be credited to demat accounts on Tuesday, December 9. The stock is expected to list on BSE and NSE on Wednesday, December 10.

Use of proceeds

The company plans to deploy funds towards capital expenditure for new projects in subsidiary ALCU, debt repayment, and general corporate purposes.

Anil Singhvi on Vidya Wires IPO

Zee Business Managing Editor Anil Singhvi highlighted Vidya Wires’ experienced promoters, strong market position with a 5.7 per cent share in the winding segment, consistent profitability, nominal debt, and future capacity expansion. However, he pointed to risks such as dependence on select sectors and exposure to copper price volatility.

Positives

- Highly Experienced promoters were deep understanding of business
- Market leader with 5.7% share in winding segment
- Impressive growth track record
- Regular profit-making company with nominal debt
- Huge benefit from doubling the capacity from FY27
- Attractive valuations compared to peers

Negatives

- Dependent on few sectors for major revenue
- Business heavily dependent on highly volatile commodity ‘Copper’

Vidya Wires IPO: Should you apply?

- A market leader in winding and conductivity products with highly experienced promoters
- Apply for reasonable listing gains and long term