Fri Dec 05 04:00:00 UTC 2025: Summary:

Vidya Wires Ltd.’s IPO was fully subscribed on the first day, receiving bids exceeding the offered shares by 2.89 times. The grey market premium (GMP) indicates investor interest, though it is speculative. The IPO aims to raise ₹300 crore through a fresh issue and offer-for-sale, with the price band set at ₹48-₹52 per share. The funds will be used for capital expenditure, debt repayment, and corporate purposes. Allotment is expected on December 8, listing on December 10. Vidya Wires, a producer of aluminium and copper wires, has shown strong financial growth in FY25.

News Article:

Vidya Wires IPO Oversubscribed on Day One, Signalling Strong Investor Confidence

Mumbai – December 4, 2024 – Vidya Wires Ltd., a leading manufacturer of aluminium and copper wires, witnessed strong investor demand for its initial public offering (IPO), with the issue being oversubscribed on its first day, December 3. The ₹300-crore mainboard IPO received bids for 12,50,98,560 shares against the 4,33,34,009 shares on offer, resulting in a subscription rate of 2.89 times.

The IPO, a book-building issue, comprises a fresh issue of 5.27 crore shares worth ₹274 crore and an offer-for-sale (OFS) of 50 lakh shares aggregating to ₹26.01 crore. The company has set the price band at ₹48 to ₹52 per share.

Investor sentiment is also reflected in the grey market premium (GMP), currently at ₹6, indicating that unlisted shares are trading at ₹58 per share, an 11.54% premium over the upper price band. However, experts caution against relying solely on GMP, as it is unregulated and speculative.

Vidya Wires intends to utilize ₹140 crore from the IPO proceeds for capital expenditure on a new project under its subsidiary. The remaining funds will be allocated to debt repayment and general corporate purposes.

Established in 1981, Vidya Wires specializes in winding and conductivity products for various industries. The company has demonstrated robust financial performance, with its total income increasing to ₹1,491.45 crore in FY25, compared to ₹1,188.49 crore in FY24. Net profit also saw a significant surge, reaching ₹40.87 crore in FY25 from ₹25.68 crore in the previous year.

The IPO share allotment is expected to be finalized on December 8, with refunds and Demat account transfers scheduled for December 9. The tentative listing date for Vidya Wires Ltd. on the NSE and BSE is December 10.

MUFG Intime India Pvt. is the issue registrar, while Pantomath Capital Advisors Pvt. is the book running lead manager.

Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read the red herring prospectus thoroughly before placing bids.

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