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Key Takeaways
- Vidya Wires Ltd launches a ₹300 crore IPO backed by strong profitability and 24.57% ROE.
- Financials show consistent revenue growth and superior margins vs peers.
- IPO priced at ~20.36x P/E, far lower than listed wire manufacturers.
- Strengths: diversified product mix, backward integration, and 370+ clients.
- Medium to long-term investors may consider subscribing based on fundamentals.
Vidya Wires Ltd., a long-standing manufacturer of copper and aluminium winding wires, is set to enter the capital markets with its ₹300 crore IPO. The company serves a wide range of sectors—electrical equipment, industrial applications, renewable energy, and EV components—and has built a strong market reputation with steady expansion and a large customer base.
This blog covers detailed IPO insights including business analysis, financials, valuations, risks, and the overall investment outlook.
Vidya Wires Ltd IPO Details
- Total Issue Size: ₹300 crore
- Fresh Issue: ₹274 crore
- OFS: ₹26.01 crore
- Issue Window:
- Opens: December 3, 2025
- Closes: December 5, 2025
- Price Band: ₹48–₹52 per share
- Lot Size: 288 shares
- Listing: BSE & NSE
- Estimated Market Cap: ₹1,106 crore
Issue Allocation
- QIBs: 50%
- NIIs: 15%
- Retail: 35%
Use of Funds
- Setting up a new subsidiary project under ALCU
- Repayment of borrowings
- General corporate purposes
Company Overview
Vidya Wires Ltd is one of India’s established suppliers of conductivity-based copper and aluminium products used in transformers, motors, renewable power systems, and EV components.
Product Portfolio
- Winding wires
- Conductors
- Busbars
- Copper & aluminium strips
- Aluminium paper-covered strips
- PV ribbons
- Custom conductivity-engineered solutions
The company services 370+ clients, making it a key player in India’s electrical manufacturing ecosystem.
Key IPO Financial Ratios (FY25)
- ROCE: 19.72%
- ROE: 24.57%
- EPS: ₹2.55
- P/E (Pre-IPO): 20.36×
These indicate strong profitability and efficient capital deployment.
Industry Comparison
Vidya Wires is priced at nearly half the P/E multiple of listed peers while delivering superior ROE, making the IPO valuation extremely attractive.
Competitive Strategy
Vidya Wires aims to strengthen its industry position through:
- Capacity expansion (ALCU project)
- Broader product diversification
- Growth in EV and renewable segments
- Enhanced cost-efficiency through backward integration
- Wider domestic & international reach
Key Strengths
- 370+ diversified customer base
- Presence across multiple industries reduces cyclicality
- Backward-integrated operations ensure cost & quality control
- Manufacturing in a logistically favourable region
- Strong client relationships with repeat business
- Stable financial performance with consistent margin growth
Key Concerns
- Heavy dependence on a few raw material suppliers
- Limited insurance coverage for operational risks
- Exposure to ongoing legal proceedings
- Industry-wide margin sensitivity to copper & aluminium price fluctuations
Valuation & Outlook: Should You Subscribe?
Vidya Wires operates in a structurally strong sector driven by India’s rising consumption of electrical infrastructure, EV components, and renewable energy systems.
Key Positives
- Attractive valuation compared to peers
- High ROE of 24.57%
- Structural demand growth in power & EV sectors
- Upcoming capacity expansion to support revenues
Our View
- The company operates in a competitive, thin-margin segment
- It has delivered consistent growth in both revenue and profitability over the reported periods.
- Its ROE of 24.57% is superior to both Precision Wires and Ram Ratna Wires.
- Vidya Wires is priced at roughly 50% of the industry average P/E. Even if we account for the "small-cap discount" or liquidity risks, the valuation gap is substantial.
- Investors can consider subscribing for a medium to long-term perspective.
Frequently Asked Questions (FAQs)
1. Is Vidya Wires Ltd IPO good for long-term investors?
Yes. Strong ROE, profitability, and sector tailwinds make it attractive for long-term investors.
2. What is the price band of the IPO?
₹48–₹52 per share.
3. How does the company compare with peers?
It is priced much lower in terms of P/E while delivering better ROE.
4. What will the IPO funds be used for?
ALCU project setup, debt repayment, and general corporate needs.
5. What are the key risks?
Raw material dependency, limited insurance, and margin pressures.
Conclusion
Vidya Wires Ltd’s IPO offers a combination of strong fundamentals, attractive valuations, and sector-driven growth opportunities. Though risks exist, the company’s long-term prospects look positive.
If you're planning to invest in the IPO or build a long-term equity portfolio, Swastika Investmart provides a SEBI-regulated, research-backed platform with powerful tools and expert support.
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