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What is the story about?
Winding and conductivity solutions maker Vidya Wires has raised ₹90 crore from anchor investors ahead of its IPO opening for public subscription.
The anchor book saw participation from marquee names including Bandhan MF, LIC MF, Bank of India MF, Maybank Securities, Alchemy Emerging Leaders of Tomorrow Series 2 and the MAIQ Growth Scheme.
The brokerage has recommended subscribing to the issue with a medium to long-term view. It said Vidya Wires operates in a competitive, low-margin segment but has delivered steady growth in both revenue and profitability. Its ROE of 24.57% is higher than peers such as Precision Wires and Ram Ratna Wires.
It added that Vidya Wires is priced at nearly 50% below the industry's average P/E. Even after accounting for a typical small-cap discount and liquidity risks, the valuation gap remains material.
At the upper end of the price band, the company is valued at a post-issue P/E of 22.94x, which the brokerage believes, is reasonable relative to peers.
Backed by sector tailwinds and the upcoming ALCU capacity expansion that is expected to enhance scale and margins, the brokerage assigned a 'Subscribe for Long Term' rating.
The IPO will be open between December 3 and 5 in a price band of ₹48-52 per share. The minimum bid size is 288 shares.
The public issue comprises a fresh issue worth ₹274 crore and an OFS of 50.01 lakh shares totalling ₹26 crore. The company plans to use the proceeds for capital expenditure at subsidiary ALCU, debt repayment and general corporate purposes.
Vidya Wires is among the largest producers of winding and conductivity products used in critical applications across energy generation and transmission, electrical systems, electric motors, clean energy, electric mobility and railways. Its portfolio includes enameled wires, paper-insulated copper conductors, rectangular copper strips, copper busbars, specialised winding wires, PV ribbon and aluminium paper-covered strips.
Half of the issue is reserved for qualified institutional buyers, 35% for retail investors and 15% for non-institutional investors.
The IPO allotment is expected on December 8, and the shares are likely to list on the BSE and NSE on December 10.
The anchor book saw participation from marquee names including Bandhan MF, LIC MF, Bank of India MF, Maybank Securities, Alchemy Emerging Leaders of Tomorrow Series 2 and the MAIQ Growth Scheme.
Swastika Investmart
The brokerage has recommended subscribing to the issue with a medium to long-term view. It said Vidya Wires operates in a competitive, low-margin segment but has delivered steady growth in both revenue and profitability. Its ROE of 24.57% is higher than peers such as Precision Wires and Ram Ratna Wires.
It added that Vidya Wires is priced at nearly 50% below the industry's average P/E. Even after accounting for a typical small-cap discount and liquidity risks, the valuation gap remains material.
Angel One
At the upper end of the price band, the company is valued at a post-issue P/E of 22.94x, which the brokerage believes, is reasonable relative to peers.
Backed by sector tailwinds and the upcoming ALCU capacity expansion that is expected to enhance scale and margins, the brokerage assigned a 'Subscribe for Long Term' rating.
The IPO will be open between December 3 and 5 in a price band of ₹48-52 per share. The minimum bid size is 288 shares.
The public issue comprises a fresh issue worth ₹274 crore and an OFS of 50.01 lakh shares totalling ₹26 crore. The company plans to use the proceeds for capital expenditure at subsidiary ALCU, debt repayment and general corporate purposes.
Vidya Wires is among the largest producers of winding and conductivity products used in critical applications across energy generation and transmission, electrical systems, electric motors, clean energy, electric mobility and railways. Its portfolio includes enameled wires, paper-insulated copper conductors, rectangular copper strips, copper busbars, specialised winding wires, PV ribbon and aluminium paper-covered strips.
Half of the issue is reserved for qualified institutional buyers, 35% for retail investors and 15% for non-institutional investors.
The IPO allotment is expected on December 8, and the shares are likely to list on the BSE and NSE on December 10.
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