Vidya Wires shares to list on exchanges tomorrow; should you buy, sell or hold?

Vidya Wires IPO shares to list on December 10.

Vidya Wires shares will list on the stock exchanges on Wednesday after the company’s Rs 300-crore initial public offering (IPO) drew robust investor interest, closing 26.59 times subscribed on the final day of the share sale on Friday.

The issue was fully subscribed within hours of opening on Wednesday and ended the first day with 2.89 times subscription. Vidya Wires had earlier raised Rs 90 crore from anchor investors. The IPO was priced in the range of Rs 48–52 per share.

Vidya Wires manufactures enamelled copper wires, strips and conductors used in the power, electrical, engineering and renewable energy sectors. The company is the fourth-largest player in its category in India, supported by a diversified product portfolio and improving capacity utilisation. It plans to almost double its manufacturing capacity to meet rising demand.

"The company offers a wider product mix than peers such as Precision Wires and Ram Ratna, along with gains in operational efficiency. “VWL is valued at a P/E of 27.1 times based on FY25 EPS of Rs 1.9 and an EV/Sales of 0.7 times, both at a discount to peer valuations. The company has delivered strong revenue and profit growth with healthy margins. The outlook remains positive and investors can hold for the medium to long term," Mahesh M. Ojha, VP - Research & Business Development at Kantilal Chhaganlal Securities Pvt.Ltd. said.

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According to platforms tracking grey-market trends, the shares were quoting at a premium of about 8 percent. Investorgain reported a grey-market premium (GMP) of Rs 4, indicating a potential listing gain of 7.69 percent.

The company intends to use the net proceeds for capital expenditure in its subsidiary ALCU, debt repayment and general corporate purposes.

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