Vidya Wires IPO Subscription Status
As of 3:15 PM on the first day of registration, Vidya Wires’ IPO received a strong response from investors, with the issue being oversubscribed by a total of 2.3 times.Retail Individual Investors (RIIs) showed particularly strong interest and subscribed 3.3 times for the Rs 2.17 crore shares allotted to them, underscoring the robust demand from retail investors.
Non-institutional investors (NIIs) also actively participated, with their share subscribing 2.53 times for offered shares of Rs 2.53 crore.
Qualified Institutional Buyers (QIBs), on the other hand, showed subdued appetite, subscribing only 47% of the Rs 1.22 crore shares reserved for them.
Overall, the subscription pattern indicates strong investor enthusiasm on opening day, largely driven by retail and non-institutional investors.
Vidya Wires IPO GMP today:
On the gray market, the IPO is trading at a premium of Rs 6.5, or 12.5%, over the top end of the price band, indicating a potential listing price of around Rs 58.5 per share. However, it is important to note that the GMP is an unofficial indicator and may not fully reflect the actual listing price on the exchange.
Vidya Wires IPO details: price range, structure and key dates
Vidya Wires has priced its upcoming IPO between Rs 48 and 52 per equity share, each with a face value of Rs 1. The issue will raise a total of Rs 300 crore, comprising a fresh issue of Rs 274 crore along with an offer for sale worth Rs 26 crore.
Under the OFS, promoters Shyamsundar Rathi and Shailesh Rathi will sell 50.01 lakh shares. Notably, the weighted average acquisition cost of the promoters is just Rs 0.25 per share, indicating substantial value creation prior to listing.
Key dates for the issuance include completion of allotment on December 8, commencement of redemptions on December 9, and equity lending and listing on the BSE scheduled for December 10.
Vidya Wires IPO Valuations: Attractive compared to peers
From a valuation perspective, Vidya Wires appears competitively priced. Based on FY25 diluted earnings per share, the company’s price-to-earnings ratio is 20.39x at the high end of the price range and 18.82x at the low end.
These numbers place the IPO at a clear discount to the industry’s average price-to-earnings ratio of 47.82x for the same period. Furthermore, the company has demonstrated consistent profitability, supported by a three-year weighted average return on equity of 22.69%.
About Vidya threads
Vidya Wires is a leading manufacturer of winding and conductivity products, supplying critical components to industries such as power transmission, electrical equipment and general engineering. The product portfolio includes enameled copper wires, PV ribbons, copper busbars and paper-covered strips.
The company’s financial performance remains strong, with an operating revenue of Rs 1,295 crore in FY25. The power and transmission segment contributed 48.06% of this revenue, followed by 28.58% from the power sector and 10.20% from general engineering, underscoring a well-diversified and resilient business model.
IPO allocation and lead managers
In accordance with Sebi regulations, up to 50% of the issue is reserved for qualified institutional buyers (QIBs), while at least 15% is allocated to non-institutional investors. Private investors receive at least 35% of the offer.
The IPO is jointly managed by Pantomath Capital and IDBI Capital, with MUFG Intime India serving as registrar.
Subscribe for long-term gains
Analysts say growing investments in the energy sector are increasing demand for electrical wires and cables. The government’s focus on energy security, renewables and access to electricity in rural areas has led to a sharp increase in the number of power generation, transmission and distribution projects, necessitating a robust electrical infrastructure.
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“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 well-positioned to capitalize on the growing wire and cable market. Investors can view the IPO as a potential long-term investment opportunity,” Master Capital Services said.
(Disclaimer: Recommendations, suggestions, views and opinions expressed by the experts are their own. These do not represent the views of The Economic Times)
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