Vidya Wires Files DRHP with SEBI for ₹320 crore IPO

Vidya Wires, a manufacturer of winding and conductivity products, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise funds through an initial public offering (IPO). The IPO will include a fresh issue of equity shares aggregating up to ₹320 crore by the company. Additionally, there will be an offer for sale (OFS) of up to 1 crore equity shares by the promoters, Shyamsundar Rathi and Shailesh Rathi, who will each offload 50 lakh shares. The shares are proposed to be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange of India (NSE).

IPO Details

The retail quota for the IPO is at least 35%, while Qualified Institutional Buyers (QIB) make up a maximum of 50%, and High Net Worth Individuals (HNI) represent at least 15% of the offer. Vidya Wires holds ISO certifications for quality, occupational health and safety, and environmental management systems.

Use of IPO Proceeds

The company plans to utilize the net proceeds from the fresh issue for several purposes:

• Funding capital expenditure requirements for setting up a new project in its subsidiary, ALCU.
• Repayment or prepayment of outstanding borrowings.
• General corporate purposes 

The company will not receive any proceeds from the Offer for Sale. After deducting offer-related expenses and taxes, the selling shareholders will be entitled to their portion of the OFS proceeds.

Company Overview

Incorporated in 1981, Vidya Wires is a leading manufacturer of winding and conductivity products catering to various industries. Its product portfolio includes precision-engineered wires, enamelled copper rectangular strips, paper-insulated copper conductors, copper busbars, bare copper conductors, specialized winding wires, PV ribbons, and aluminium paper-covered strips. These products serve sectors such as energy generation and transmission, electrical systems, electric motors, clean energy systems, electric mobility, and railways. As the fourth-largest manufacturer in the industry, Vidya Wires holds a 5.9% market share of installed capacity in India for fiscal 2024. The company aims to strengthen its market position by expanding its manufacturing capabilities and diversifying its product range.

Financial Performance

Vidya Wires has demonstrated growth in recent years.

The company's profit rose to ₹25.69 crore in FY24, a 19.54% increase from ₹21.49 crore in FY23. Revenue from operations jumped to ₹1,186.07 crore in FY24, a 17.26% increase from ₹1,011.43 crore in FY23. Expenses also increased to ₹1,154.16 crore in FY24, up 16.97% from ₹986.67 crore in FY23. The company's financial data for previous years is also available:

2022: Revenue ₹912.58 crore, Profit ₹19.73 crore.

2023: Revenue ₹1011.44 crore, Profit ₹21.50 crore.

2024: Revenue ₹1186.07 crore, Profit ₹25.69 crore.

Book Running Managers

Pantomath Capital Advisors and IDBI Capital Markets & Securities are the book running lead managers for the IPO. MUFG Intime India (formerly known as Link Intime India) serves as the registrar for the issue. 

Disclaimer: This news is solely for educational purposes. The securities/investments quoted here are not recommendatory.