Vidya Wires IPO GMP Rises Ahead Of Opening of Bidding Window On December 3 - Should You Apply?

Vidya Wires IPO GMP: Vidya Wires is set to launch its initial public offering (IPO) on December 3, with the bidding window scheduled to close on December 5. Before the opening of the subscription window, the grey market premium (GMP) of the wire manufacturer’s shares has increased.

Ahead of the opening of the subscription window later this week and a jump in the GMP, here’s a look at some of the key details related to the company’s public issue which investors should know before they consider applying.

Vidya Wires IPO GMP

Vidya Wires IPO GMP surged to Rs 10 on December 1, according to multiple websites which monitor the movement of unlisted shares in the grey market. The GMP is currently indicating a strong listing for the company’s shares at Rs 62 apiece with potential listing gains of 19.23 per cent.

Vidya Wires IPO: Offer Size, Listing Date, Price Band

Vidya Wires IPO offer size aggregates to Rs 300.01 crore. The wire-maker’s issue consists of a fresh issue of 52.70 million shares aggregating to Rs 274 crore and an offer for sale (OFS) of five million shares amounting to Rs 26.01 crore.

The price band has been fixed at Rs 48-52 per share. The minimum lot size to apply for Vidya Wires IPO for retail investors has been set at 1 lot consisting of 288 shares aggregating to a minimum investment of Rs 14,976.

The basis of allotment for Vidya Wires IPO is expected to be determined on December 8 with successful bidders receiving the shares in their demat account on December 9. The shares are slated to list on the BSE and NSE on December 10.

Vidya Wires IPO: Key Financials

Vidya Wires’ total income for the June quarter of FY26 stood at Rs 413.09 crore, the company’s profit-after-tax (PAT) stood at Rs 12.06 crore and the company’s net worth stood at Rs 178.37 crore. The company’s total income increased by over 25 per cent to Rs 1,491.45 crore in the financial year ending March 31, 2025 compared to Rs 1,188.49 crore in the preceding fiscal. The company’s PAT for FY 2024-25 stood at Rs 40.87 crore, up by over 59 per cent compared to a net profit of Rs 25.68 crore in FY 2023-24.

Vidya Wires: Business Model

Vidya Wires is a maker of winding and conductivity products for a range of critical industries and applications. The company’s product portfolio comprises more than 8,000 stock-keeping units (SKUs). The product portfolio includes precision-engineered enamelled wires, enamelled copper rectangular strips, paper insulated copper conductors, copper bushbar, bare copper conductors, specialised winding wires, and aluminium paper covered strips. The company’s products are used in industries involved in energy generation and transmission, electrical systems, electric motors, clean energy systems, electric mobility, and railways. The company generates a bulk of its revenue from making and selling winding and conductivity copper products.

Vidya Wires: Competitors

Vidya Wires competes with other manufacturers of copper winding wires and strips in the organised and unorganised sectors. Vidya Wires mentioned in its red herring prospectus (RHP) that its key competitors include Precision Wires India, Ram Ratna Wires, and Apar Industries. The company also competes with unlisted manufacturers, such as KSH International and GK Winding Wires.

Vidya Wires IPO: Should You Apply?

Here’s a look at the strengths and risks mentioned by the pharmaceutical company which investors must consider before applying for the public issue:

Vidya Wires: Key Risks

Here’s a look at some of the key risks related to Vidya Wires’ business according to the company’s RHP.

• Vidya Wires mentioned in its RHP that over 80 per cent of its revenue from operations are derived from supplies to power and transmission, general engineering, and electrical sector in the three months period ended June 30, 2025, and last three fiscals. Thus, any slowdown in these sectors may impact the company’s business.

• Fluctuations in prices of, or shortages of, or delays or disruptions in the supply of its primary raw materials can affect its estimated costs, expenditures, sales, and timelines, which may have a material adverse effect on its business.

• The company has experienced negative cash flows in the three-month period ended June 30, 2025 and the preceding three fiscals. Sustained negative cash flows can adversely impact the company’s business.

Vidya Wires: Key Strengths

Here’s a look at some of the key strengths of Vidya Wires, according to the company’s RHP:

• Vidya Wires said it is among the top five manufacturers of winding wires in India. The company is the fourth largest maker of copper wires in terms of installed capacity.

• Its manufacturing facility is located strategically in Anand, Gujarat and has the advantage of access to various seaports in Gujarat for the import and export of material.

• It also has a diversified customer base and a longstanding relationship with customers and suppliers which has enabled it to gain an understanding of the domestic and the overseas market. This knowledge has influenced product development, and allowed the company to build a diverse portfolio that caters to a range of customer needs.

Vidya Wires IPO: Objective

Vidya Wires plans to use the money raised through the public issue for funding its capital expenditure requirements, such as the setting up of new projects for its subsidiary, ALCU Industries. A portion of the IPO proceeds will also be used for the repayment of borrowings availed of by the company and for other general corporate purposes.