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Vidya Wires Ltd. Going Public: Analyst’s Take on the IPO

Writer
Nidhi Thakur
timer
December 3, 2025
Vidya Wires Ltd. Going Public: Analyst’s Take on the IPOblog thumbnail

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

Investors with a medium to long-term horizon may consider subscribing to the Vidya Wires IPO.

Short-term listing gains will depend on subscription numbers and market sentiment during the issue window.

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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