IPO Details
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Schedule of Vidya Wires Pvt Ltd IPO
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Allotment of bids
Refund Initiation
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About Vidya Wires Ltd IPO
The IPO of Vidya Wires Ltd is a 100% book-built issue comprising a fresh issue and an offer for sale. While the fresh issue size aggregates up to ₹320 crore, the offer for sale comprises up to 10,000,000 equity shares.
Objectives of Vidya Wires Ltd IPO
The company proposes to utilise the net proceeds from the IPO to:
- Fund capital expenditure requirements for setting up new project in its subsidiary
- Repay/prepay, in full or part, of all or certain outstanding borrowings availed by the company
- Meet general corporate purposes
Vidya Wires Ltd IPO Valuation
| Detail | Information |
|---|---|
Upper Price Band | TBA |
Fresh Issue Size | Up to ₹320 crore |
Offer for Sale | Up to 10,000,000 equity shares |
EPS (in ₹) for FY 24 | 1.61 |
Vidya Wires Ltd Share Offer and Subscription Details
| Investor Category | Shares Offered |
|---|---|
QIBs | Not more than 50% of the offer |
Non-institutional investors | Not less than 15% of the offer |
Retail individual investors | Not less than 35% of the offer |
Industry Outlook
The Indian wire and cables market were valued at USD 17.70 billion in 2023 and is expected to reach USD 27.80 billion by 2028, growing at a CAGR of 9.5% during this period, primarily driven by government infrastructure investments, green energy initiatives and rising demand in real estate and industrial sectors.
Company Information
Vidya Wires Ltd is one of the largest manufacturers of winding and conductivity products for a range of critical industries and applications. The company’s products are used in varied critical applications such as energy generation & transmission, electrical systems, electric motors, clean energy systems, electric mobility and railways.
Vidya Wires Pvt Ltd Strengths
Among the top 5 manufacturers in its industry in India
Vidya Wires Ltd is the fourth largest manufacturer in its industry in terms of installed capacity. Its current installed capacity is 19,680 MT per annum.
De-risked business model with wide customer base, diversified portfolio of products and multiple end-user industries
The company’s diversified portfolio of products, wide customer base across multiple end-user industries and customer profiles reduces its dependence on any particular segment and provides a natural hedge against market instability in a particular industry. In the six months period ended September 30, 2024, and the last 3 fiscal years, the company sold its products to over 370 customers, including over 40 international customers in more than 20 countries across 5 continents.
Backward integration for quality control as well as sustainability initiatives
The company’s manufacturing facilities are accredited with quality management system certificates for compliance with ISO 9001:2015, ISO 45001: 2018 and ISO 14001:2015. With a view to maintain consistency and control over quality and supply of its raw material, the company has implemented backward integration in its manufacturing facility. They produce oxygen free copper rods from copper cathodes, which are then used to manufacture its final products.
Presence in strategically located region
The company’s operating facilities are located in Anand, Gujarat, which has the advantage of access to various sea ports in Gujarat for import and export of material. The company mostly uses ports of Hazira and Mundra for exporting its products as well as importing its raw materials.
Risks of Vidya Wires Ltd IPO
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The company is dependent on its top 5 suppliers for most of its raw material supplies. Any dispute with such a supplier may lead to interruption in its supplies of raw materials.
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While its revenues are growing pan-India across 20 states/union territories, it’s concentrated in western India. Any slowdown in these states may impact its business.
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While it supplies to various end-user industries, a significant part of its revenues comes from supplies to power & transmission, general engineering and electrical sector. Any slowdown in these sectors may impact its business.
All Financial Information about Vidya Wires Pvt Ltd
Particulars (in Rs. crores)
Particulars (in Rs. crores)
Comparison with peers
| Parameter (For FY 24) | Vidya Wires Ltd | Precision Wires India Ltd | Ram Ratna Wires Ltd |
|---|---|---|---|
Revenue from Operations (in ₹crore) | 1186.073 | 3301.691 | 2983.248 |
P/E | NA | 38.68 | 44.85 |
Return on Net Worth (in%) | 20.47 | 14.39 | 12.64 |
EPS in ₹ | 1.61 | 4.08 | 11.88 |
IPO Registrar and Book Running Lead Managers
MUFG Intime India Private Ltd, formerly known as Link Intime India Private Ltd is the registrar of the Vidya Wires Ltd IPO. The book running lead managers are Pantomath Capital Advisors Private Ltd and IDBI Capital Markets & Securities Ltd.
Business Model
The company earns revenue through the following sources: They manufacture winding and conductivity products for a range of critical industries and applications.
The product portfolio of Vidya Wires Ltd includes:
- Precision-engineered wires
- Enamelled copper rectangular strips
- Paper insulated copper conductors
- Copper busbar and bare copper conductors
- Specialised winding wires
- PV ribbon and aluminium paper covered strips
They export enamelled copper/aluminium wire to the United States of America.
Used for conductivity, durability, and thermal efficiency, the company’s products are integral to high-performance applications where reliability is crucial.
Company Growth Trajectory
Vidya Wires Ltd is one of the fastest growing companies in terms of CAGR growth in EBITDA and PAT. The company’s EBITDA stood at ₹45.515 crore in FY 24 as against ₹31.011 crore in FY 22. Its PAT stood at ₹25.693 crore in FY 24 as against ₹19.731 crore in FY 22. The firm’s revenue from operations was ₹1186.073 crore in FY 24 as against ₹912.581 crore in FY 22.
Market Position
Vidya Wires Ltd is the 4th largest manufacturer in its industry with a 5.9% market share of installed capacity in FY24 in India as per the CareEdge Report. With plans to expand manufacturing capabilities and further diversify its product range, the company seeks to enhance its market position.
Vidya Wires Ltd Profit and Loss
| Parameter | FY24 | FY23 | FY22 |
|---|---|---|---|
Total Income (in ₹ crore) | 1188.489 | 1015.718 | 916.983 |
Profit Before Tax (in ₹ crore) | 34.320 | 29.047 | 26.409 |
EBITDA (in ₹ crore) | 45.515 | 35.832 | 31.011 |
EPS in ₹ | 1.61 | 1.34 | 1.23 |
Vidya Wires Ltd Cash Flow Statement
| Parameter | FY24 | FY23 | FY22 |
|---|---|---|---|
Profit Before Tax (in ₹ crore) | 34.320 | 29.047 | 26.409 |
Net Cash (Used In) / Generated from Operating Activities (in ₹ crore) | 2.163 | 37.535 | (15.872) |
Net Cash (Used In) / Generated from Investing Activities (in ₹ crore) | (3.679) | (5.649) | (8.079) |
Net Cash (Used In) / Generated from Financing Activities (in ₹ crore) | 1.688 | (31.842) | (23.954) |
Cash and Cash Equivalents at the End of the Period (in ₹ crore) | 0.256 | 0.084 | 0.041 |
How to Check Allotment Status of Vidya Wires Ltd IPO?
You can check the allotment status of Vidya Wires Ltd IPO through the BSE website and through the registrar portal. To check status on BSE website:
- Visit the BSE website
- Click on “Investor Services” and choose “Application Status Check”
- Choose the issue type — Equity or Debt
- Select the Issue Name from the drop-down.
- Enter your application number or PAN number
- Check the box that says “I’m not a Robot” and click on “Search” to know the allotment status
To find the allotment status through the registrar’s portal:
- Visit the website of MUFG Intime India Private Ltd, previously Link Intime India Private Ltd
- Choose ‘Public Issues’ from Investor Services dropdown
- Choose the name of the company from ‘Select Company’ dropdown
- Enter any of these - PAN Number, Application Number, DP/Client ID, Account Number / IFSC
- Click on Submit to check the status
How to Apply for Vidya Wires Ltd IPO?
To apply for Vidya Wires Ltd IPO:
- Step 1: Log in to your Kotak Securities Demat account: Log in to your Demat account to access IPO investments. Next, select the current IPO section.
- Step 2: Specify IPO details: Enter the number of lots and the price you wish to apply for.
- Step 3: Enter UPI ID After entering your UPI ID, click submit. This will place your bid with the exchange.
- Step 4: Mandate Notification: Your UPI app will receive a mandate notification to block funds.
- Step 5: Approve Request Your funds will be blocked once you approve the mandate request on your UPI.
This article is for informational purposes only and does not constitute financial advice. It is not produced by the desk of the Kotak Securities Research Team, nor is it a report published by the Kotak Securities Research Team. The information presented is compiled from several secondary sources available on the internet and may change over time. Investors should conduct their research and consult with financial professionals before making any investment decisions. Read the full disclaimer here.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Please read the SEBI-prescribed Combined Risk Disclosure Document before investing. Brokerage will not exceed SEBI’s prescribed limit.
Vidya Wires Pvt Ltd IPO FAQs
What is the Vidya Wires Ltd IPO?
The Vidya Wires Ltd IPO consists of a fresh issue and an offer for sale. While the fresh issue aggregates up to ₹320 crore, the offer for sale consists of up to 10,000,000 equity shares.
When will the IPO of Vidya Wires Ltd go live?
The exact dates of the Vidya Wires Ltd IPO are yet to be announced.
From where can I read more about Vidya Wires Ltd and its IPO?
You can read more about Vidya Wires Ltd and its IPO from the company’s draft red herring prospectus here
