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
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' 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%.
