What is Vidya Wires' IPO subscription status?

On its first day, Vidya Wires' IPO was subscribed 2.89 times, with strong interest from retail and non-institutional investors.

What is the grey market premium for Vidya Wires IPO?

The grey market premium for Vidya Wires IPO is Rs 5, or 9.6%, suggesting a potential listing price around Rs 57 per share.

Why is Vidya Wires IPO considered attractively priced?

Vidya Wires IPO is priced at a discount to the industry average P/E ratio and shows consistent profitability with a strong return on net worth.

Home / Business and Economy / Vidya Wires IPO Surges: Oversubscribed 2.89x on Day 1

Vidya Wires IPO Surges: Oversubscribed 2.89x on Day 1

5 Dec

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Summary

Vidya Wires IPO oversubscribed 2.89 times on its first day.
Grey market premium indicates potential listing around Rs 57 per share.
Company offers a discount compared to industry average P/E ratio.

Vidya Wires IPO Surges: Oversubscribed 2.89x on Day 1

Vidya Wires' Rs 300 crore initial public offering has garnered significant investor attention, closing its first day of bidding with an oversubscription of 2.89 times. The issue witnessed robust participation from retail individual investors, who subscribed 4.02 times their allocated portion, and non-institutional investors, who subscribed 3.42 times. This strong demand has translated into a grey market premium of 9.6%, indicating a potential listing price around Rs 57 per share.

The IPO, comprising a fresh issue of Rs 274 crore and an offer for sale of Rs 26.01 crore, is priced between Rs 48 to Rs 52 per share. Vidya Wires, a key manufacturer of winding and conductivity products for the power and electrical sectors, presents an attractive valuation. Its price-to-earnings ratio, at the upper band, is 20.39x, notably lower than the industry average of 47.82x, coupled with a consistent three-year weighted average return on net worth of 22.69%.