Vidya Wires IPO subscribed 8x on Day 2, GMP rises; should you apply?

Vidya Wires IPO

The initial public offering of Vidya Wires continued to see strong investor interest during its second day of public bidding, being subscribed more than 8 times its offer size on Day 2.

The maiden public issue of the wire-maker has received bids for over 35.79 crore shares, as against an offer size of 4.33 crore shares, according to data on NSE. Retail investors have shown the most interest in the IPO, subscribing their reserved portion over 11 times (1,145 percent).

Non Institutional Investors (NII) closely followed, booking their allotted quota more than 10 times (1,000 percent). Qualified Institutional Buyers (QIB) have fully subscribed their reserved portion (130 percent).

Vidya Wires GMP:

Ahead of listing, the unlisted shares of the company were trading with 10.58 percent grey market premium (GMP) over the IPO price, according to data on Investorgain. This is higher than the 9.62 percent GMP quoted by the site earlier yesterday.

The unlisted shares were trading with 11.54 percent GMP over the IPO price in the grey market, according to data on IPO Watch.

About Vidya Wires IPO:

Vidya Wires launched its IPO to raise over Rs 300 crore at a price band of Rs 48-52 per share. The maiden public issue of the company comprises a fresh issue of shares worth up to Rs 274 crore and an offer for sale of shares worth Rs 26 crore.

Investors can bid for a minimum of 288 shares, requiring an investment of Rs 14,976 at the upper price band, and in multiples thereafter. The IPO will remain open for public bidding between December 3 and December 5. The allotments are likely to be finalized by December 8, and the shares are scheduled to be listed on stock exchanges BSE and NSE on December 10.

Should you apply for Vidya Wires IPO?

Angel One kept a 'Subscribe for long term' rating for the IPO. "At the upper price band of ₹52 per share, Vidya Wires is valued at a post-issue P/E of 22.94x, which appears reasonable compared to peers. Supported by strong sector demand and upcoming ALCU capacity expansion expected to improve scale and margins, we assign a 'Subscribe for Long Term' rating," the domestic brokerage said.

"Vidya Wires is a 40-year-old profitable copper conductor manufacturer supplying ABB, Siemens, and Crompton. FY25 PAT grew 59%, ROE stands at 25%, and valuation at 23x PE is reasonable. It is well placed to benefit from EV, renewable energy, and electrical infrastructure growth. Risks include commodity price volatility and working capital intensity, but fundamentals remain strong," said Abhinav Tiwari, Research Analyst at Bonanza.

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