Vidya Wires IPO subscribed 2.89 times on Day 1; check GMP

New Delhi: The initial public offering (IPO) of Vidya Wires Ltd was fully subscribed within hours of opening for subscription on Wednesday and closed the day with an overall subscription of 2.89 times.

The Rs 300-crore IPO received bids for 12,50,41,536 shares against 4,33,34,009 shares on offer, translating into 2.89 times subscription, as per data available with the NSE.

The portion reserved for Retail Individual Investors (RIIs) was subscribed 4.02 times, while the quota for non-institutional investors was subscribed 3.42 times. The Qualified Institutional Buyers (QIBs) category saw 47 per cent subscription.

In the grey market, shares of Vidya Wires were quoting at a premium of around Rs 6 over the upper end of the price band, implying an estimated listing price of about Rs 58 per share, according to market trackers. 

Winding and conductivity products maker Vidya Wires had on Tuesday raised Rs 90 crore from anchor investors.

The IPO is open for subscription till December 5 in a price band of Rs 48-52 per share.

The public issue comprises a fresh issue of shares aggregating up to Rs 274 crore and an Offer For Sale (OFS) of 50.01 lakh shares valued at Rs 26 crore.

The company plans to use the net proceeds to fund capital expenditure for new projects in its subsidiary ALCU, for repayment of debt, and for general corporate purposes.

Vidya Wires is one of the largest manufacturers of winding and conductivity products for a range of critical industries and applications.

Its product portfolio includes precision-engineered enameled wires, enameled copper rectangular strips, paper insulated copper conductors, copper busbars and bare copper conductors, specialised winding wires, PV ribbon and aluminium paper-covered strips, among others.

These products are used in applications such as energy generation and transmission, electrical systems, electric motors, clean energy systems, electric mobility and railways.