Vidya Wires
IPO Size: Rs. 300 cr
- Fresh Issue of Rs. 274 cr for (i) capex Rs. 140 cr (ii) Rs. 100 cr debt repayment of Rs. 160 cr net debt
- Offer for Sale (OFS) of Rs. 26 cr by the promoter (99.9% to shrink to 72.8%)
Price band: Rs. 48-52 per share
M cap: Rs. 1,106 cr, implying 27% dilution
IPO Date: Wed 3rd Dec to Fri 5th Dec 2025, Listing Wed 10th Dec 2025
Grey Market Premium (GMP): We are strongly against ‘grey market premium’ as it is an unofficial figure, against SEBI guidelines.
India’s 4th Largest Copper Winding Wire Maker
Vidya Wires, is a Anand, Gujarat based manufacturer of enameled copper winding wires, paper insulated copper strips, copper busbar and bare copper conductors used in power and transmission, engineering, electricals, renewables and electric vehicle, consumer durables etc. It is India’s 4th largest manufacturer of winding and conductivity products, behind Precision Wires and Ratna and KSH International, having 2 plants in Gujarat, with an aggregate installed capacity of 19,680 MTPA, which is ~95% utilised. It is backward integrated with 35-40% copper rods manufacturing and 26% power generation in-house.
Doubling Capacity from Fresh Issue Proceeds
Company is expanding capacity by 18,000 MTPA, via an investment of Rs. 150 cr. Of this, Rs. 55 cr has already been deployed via internal accruals (Rs. 10 cr) and a bridge loan (Rs. 45 cr). As expansion work has already commenced, the additional capacity is likely to come on stream by Jan 2026 itself, nearly doubling capacity to 37,680 MTPA for FY27E. This will also make Vidya Wires the 3rd largest player, post expansion.
Growing Financials
Between FY22 to FY25, revenue increased at 18% CAGR to Rs. 1,486 cr, with PAT rising at 27% CAGR to Rs. 41 cr. FY25 EBITDA and PAT margin stood at 4.7% and 2.7% respectively and company remains unaffected by the commodity price fluctuations, due to full hedging. Q1FY26 revenue and PAT were at Rs. 412 cr and 12 cr respectively, translating into net margin of 2.9% and an EPS of 75 paise. On an equity of Rs. 16 cr, net worth is at Rs. 178 cr and net debt of Rs. 161 cr, of which, Rs. 100 cr is to be repaid from IPO proceeds, shrinking net debt to equity to 0:1, post IPO.
Attractive Valuations
M cap of Rs. 1,106 cr, implies a PE multiple of 18x, on Q1FY26 annualised earnings. For FY27, EPS is estimated to be over Rs. 5, on account of doubling capacity and debt repayment. Hence, one year forward PE multiple stand at an attractive 10x, for 25% RoE, growing demand for copper in conventional power and renewal energy sector, and larger peers Precision and Ram Ratna trading at 25x+ PE.
3rd Dec 2025 at 02:09 pm