Vidya Wires IPO Day 1: Issue booked 2.89x so far; retail portion fully subscribed. Check GMP, key details. Apply or not?

The initial public offering of winding and conductivity products maker, Vidya Wires opens for subscription today (Wednesday, December 3), and closes on Friday, December 5. Vidya Wires IPO price band has been fixed in the range of ₹48 to ₹52 per equity share of face value of Re 1.

Vidya Wires IPO GMP today is ₹6. Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Vidya Wires is indicated at ₹58 apiece, which is 11.54% higher than the IPO price of ₹52.

Vidya Wires announced on Tuesday that it has garnered ₹90 crore from anchor investors prior to the commencement of its initial public offering for public subscriptions.

According to a notice posted on BSE's website, the anchor investors who have been allocated shares include Bandhan Mutual Fund (MF), LIC MF, Bank of India MF, Maybank Securities, Alchemy Emerging Leaders of Tomorrow Series 2, and MAIQ Growth Scheme.

Vidya Wires is among the leading manufacturers of winding and conductivity products serving various essential industries and applications.

Their product range features precisely engineered Enameled Wires, Enameled Copper Rectangular Strips, Paper Insulated Copper Conductors, Copper Busbars, Bare Copper Conductors, Specialized Winding Wires, PV Ribbons, and Aluminum Paper Covered Strips, among other items.

Vidya Wires IPO has reserved not more than 50% of the shares in the public issue for Qualified Institutional Buyers (QIB), not less than 15% for Non Institutional Investors (NII), and not less than 35% of the offer is reserved for Retail Investors.

Tentatively,Vidya Wires IPO basis of allotment of shares will be finalised on Monday, December 8 and the company will initiate refunds on the same day, while the shares will be credited to the demat account of allottees on Tuesday, December 9. Vidya Wires IPO shares are likely to be listed on BSE and NSE on Wednesday, December 10.

Vidya Wires IPO subscription status

Vidya Wires IPO subscription status was 2.89x on day 1. The retail portion was subscribed 4.02x, and NII portion has been booked 3.42x, Qualified Institutional Buyers (QIBs) portion received 47% bids.

The company has received bids for 12,50,98,560 shares against 4,33,34,009 shares on offer, at 17:00 IST, according to data on BSE.

Vidya Wires IPO GMP today

Vidya Wires IPO GMP today is ₹6. Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Vidya Wires is indicated at ₹58 apiece, which is 11.54% higher than the IPO price of ₹52.

Considering the grey market trends from the last six sessions, today's IPO GMP is trending downwards and is anticipated to decrease further. The minimum GMP recorded is ₹6.00, while the maximum GMP stands at ₹10, as per expert opinions.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

Vidya Wires IPO Review

Anand Rathi stated that after implementation, they plan to provide approximately 18 products to both current and potential customers. The management is also focusing on high-growth areas such as electric vehicles and renewable energy, broadening its product offerings to meet the needs of these sectors while enhancing its global presence.

“Considering these aspects, the IPO seems reasonably priced and is assigned a rating of “Subscribe – Long Term,” said the brokerage.

SBICAP Securities noted that the launch of new products is anticipated to come with better margins, which could lead to increased profitability down the line. Additionally, positive industry trends, including the rising adoption of electric vehicles, investments in AI data centers, and significant capacity expansion in renewable energy, are expected to support growth potential in the years ahead. When evaluating the IPO against its nearest competitors, it appears to be fairly priced.

“We recommend investors to SUBSCRIBE to the issue at the cut-off price for a long-term investment horizon,” said the brokerage.

Vidya Wires IPO details

The company's initial public offering consists of a new issuance of shares valued at ₹274 crore, in addition to an Offer For Sale (OFS) of 50.01 lakh shares worth ₹26 crore.

The company aims to use the net proceeds to finance capital expenditure for establishing new projects in its subsidiary ALCU, pay off debt, and for general corporate needs.

Pantomath Capital Advisors Private Limited and IDBI Capital Markets & Securities Limited are acting as the lead managers for the offering, while MUFG Intime India Pvt. Ltd. serves as the registrar for the issuance.

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.