Vidya Wires Limited Makes Modest Debut with 0.25% Premium, Lists at ₹52.13 Against Strong Subscription

Vidya Wires Limited, established in 1981 engaged in manufacturing copper and aluminum wires producing winding and conductivity products including precision-engineered wires, copper strips, conductors, busbars, specialized winding wires, PV ribbons, and aluminum paper-covered strips serving energy generation, electrical systems, electric mobility, railways, and clean energy sectors with over 8,000 SKUs ranging from 0.07 mm to 25 mm, manufacturing capacity of 19,680 MTPA expanding to 37,680 MTPA with 533 employees, made a modest debut on BSE and NSE on December 10, 2025. 

Vidya Wires Limited Listing Details

Vidya Wires IPO launched at ₹52 per share with minimum investment of 288 shares costing ₹14,976. The IPO received strong response with subscription of 28.53 times - retail investors at 29.98 times, QIB at 5.45 times, NII at 55.94 times (sNII at 65.50 times and bNII at 51.16 times), indicating solid investor confidence in copper and aluminum wires manufacturing business with capacity expansion plans and diversified product portfolio.

First-Day Trading Performance

Listing Price: Vidya Wires opened at ₹52.13 representing minimal premium of 0.25% from issue price of ₹52.00, touched high of ₹57.95 (up 11.44%) and low of ₹50.09 (down 3.67%), with VWAP at ₹55.14, reflecting modest initial market reception despite strong subscription of 28.53 times though stock recovered during trading session to touch upper levels indicating growing investor interest.

Growth Drivers and Challenges

Growth Drivers:

• Strong Growth Trajectory: Revenue increased 25% and PAT rose 59% between FY24 and FY25, solid ROE of 24.57%, ROCE of 19.72%, RoNW of 24.57% demonstrating improving operational efficiency and profitability momentum.
• Capacity Expansion: Manufacturing capacity expanding from 19,680 MTPA to 37,680 MTPA with additional 18,000 MTPA facility in Narsanda, over 8,000 SKUs of winding and conductivity products ranging from 0.07 mm to 25 mm, plans to add copper foils, solar cables, and aluminum winding wires.

Challenges:

• Thin Margins: PAT margin of 2.74% and EBITDA margin of 4.32% indicating limited profitability cushion in competitive wires manufacturing segment, operating in commodity-linked business exposed to raw material price volatility.
• High Leverage: Debt-to-equity of 0.88, total borrowings of ₹145.63 crore creating financial leverage, ₹100.00 crore of IPO proceeds allocated to debt repayment indicating balance sheet pressure.

Utilisation of IPO Proceeds

• Capacity Expansion: ₹140.00 crore for funding capital expenditure requirements for setting up new project in subsidiary ALCU expanding manufacturing capabilities and product portfolio.
• Debt Repayment: ₹100.00 crore for repayment and prepayment of outstanding borrowings strengthening balance sheet and reducing interest burden to improve financial flexibility.
• General Corporate Purposes: ₹12.30 crore allocated for general corporate purposes supporting working capital requirements, operational needs, and strategic initiatives to maintain competitive positioning.

Financial Performance

• Revenue: ₹1,491.45 crore for FY25, impressive growth of 25% from ₹1,188.49 crore in FY24, reflecting expanding customer base across energy generation, electrical systems, electric mobility, railways, and clean energy sectors with over 8,000 SKUs.
• Net Profit: ₹40.87 crore in FY25, strong growth of 59% from ₹25.68 crore in FY24, demonstrating operational leverage and improving profitability through better product mix, operational efficiency, and capacity utilization.
• Financial Metrics: Solid ROE of 24.57%, ROCE of 19.72%, debt-to-equity of 0.88, RoNW of 24.57%, PAT margin of 2.74%, EBITDA margin of 4.32%, price-to-book of 6.62x, post-issue EPS of ₹2.27, P/E of 22.94x, net worth of ₹166.36 crore, total borrowings of ₹145.63 crore, and market capitalisation of ₹1,207.88 crore.