Expanding via subsidiary route
Promoted in 1981, Vidya Wires is engaged in the manufacture of copper wires, strips, paper-insulated copper conductors, copper busbars and bare copper conductors, specialised winding wires, PV ribbon, and aluminium paper-covered strips, among others.
Its products are used in applications such as energy generation and transmission, electrical systems, electric motors, clean energy systems, electric mobility, and railways. The company is the fourth-largest manufacturer with a 5.7% market share in India. It plans to expand manufacturing capabilities and further diversify its product range to strengthen its market position. Capacity utilisation improved from 70% in Fiscal 2023 to 94.5% during the three-month period ended 30th June 2025. Production volumes rose 29% over the last three fiscals, from 13,415 MT in FY23 to 17,338 MT in FY25.
The company is a pre-approved supplier to Power Grid Corporation of India. It has effectively de-risked its business model from dependence on a limited number of customers, supported by a broad-based client base, with none of its customers contributing over 9% of annual revenues.
IPO details
Vidya Wires plans to use the fresh issue primarily to fund a new project in its subsidiary ALCU (Rs 140 crore), reduce debt (Rs 100 crore), and for general corporate purposes. The offer comprises a fresh issue of equity shares aggregating up to Rs 3,200 million and an offer for sale of up to fifty lakh shares by the promoters’ selling shareholders. Equity shares with a face value of Re 1 are being offered at an issue price of Rs 52 per share (upper band).
| Name of the Company | Vidya Wires | |
| Issue Open | 03-12-2025 | |
| Issue closes | 05-12-2025 | |
| Issue Size | Rs Crore | |
| Fresh issue | 274 | |
| Offer for sale | 26 | |
| Face Value per share | Rs | 1 |
| Upper issue price band | Rs | 52 |
Expansion plans through Subsidiary:
ALCU is the subsidiary through which Vidya Wires is setting up a new manufacturing unit (“Proposed Project”) at Village Narsanda, Taluka Nadiad, Gujarat. The ALCU project is a greenfield manufacturing unit that will add 18,000 MTPA capacity focused on copper and aluminium products for renewables, EVs, transformers, and power equipment, taking Vidya Wires’ total installed capacity to 37,680 MTPA post-expansion. Products from this project will be used in solar, wind, EV, and energy-efficient electrical systems, while enhancing margins through a more value-added mix. The project is expected to be completed by mid-2026.
Financial performance:
The company has recorded a revenue CAGR of 21.2%, rising from Rs 1,011 crore in Fiscal 2023 to Rs 1,486 crore in FY25. EBIDTA margin improved from 3.5% to 4.3% during this period and further to 4.5% for the three-month period ended 30th June 2025. EBIDTA and net profit grew by 34% and 38% respectively between FY23 and FY25.
It has a high fixed asset turnover ratio of thirty-six times and an inventory turnover ratio of seventeen times. Sales are collected within an average of 36 days and the company maintains inventory for an average of 21 days.
The promoters distributed a liberal 3:1 bonus out of accumulated profits. Promoters will hold 72.8% of post-IPO capital as compared to 99.91% of pre-IPO capital. The average cost of shares to the promoters is less than Re 1.
| Financials for the year ended | Jun-25 (3M) | Mar-25 (12M) | Mar-24 (12M) | Mar-23 (12M) | CAGR (%) |
| Revenue from operations (Rs Cr) | 412 | 1,486 | 1,186 | 1,011 | 21.2% |
| Other income (Rs Cr) | 1.3 | 5.1 | 2.4 | 4.3 | 8.7% |
| EBIDTA (Rs Cr) | 18.7 | 64.2 | 45.5 | 35.8 | 33.9% |
| Interest (Rs Cr) | 3.2 | 11.4 | 10.9 | 8.3 | – |
| Depreciation (Rs Cr) | 0.9 | 2.8 | 2.7 | 2.7 | – |
| Profit after tax (Rs Cr) | 12.1 | 40.9 | 25.7 | 21.5 | 37.9% |
| EBIDTA Margin (%) | 4.5% | 4.3% | 3.8% | 3.5% | – |
Peer comparison
Vidya Wires (VW) is the smallest among its peers, including Precision Wires, Apar Industries, and Ram Ratan Wires. Its initial public offering (IPO) is priced at a price-to-earnings (P/E) ratio of 20 times, nearly half that of its peer companies.
| Particulars | Vidya Wires (VW) | Precision Wires | Ram Ratna Wires | Apar Industries |
| Income (Rs Crore) | 1,486 | 4,015 | 3,677 | 18,581 |
| Earnings Per Share (Rs) | 2.6 | 6 | 13 | 205 |
| Face Value (Rs) | 1 | 1 | 5 | 10 |
| Price/Earnings (P/E) Ratio | 20 | 41 | 46 | 45 |
| Current Market Price (Rs) | 52 | 256 | 614 | 9,150 |
| 12-Month High (Rs) | 278 | 787 | 11,800 | — |
| 12-Month Low (Rs) | 118 | 457 | 4,270 | — |
Vidya Wires is valued at Rs. 1,106 crore at its upper price band. Its market capitalization to revenue ratio stands at 0.74 times, which is comparable to Ram Ratna Wires at 0.76 times, Precision Wires at 1.2 times, and Apar Industries at 1.96 times. Long-term investors may consider waiting until the company’s expansion plans are executed within the estimated cost and timeline. While the IPO is reasonably priced, listing gains remain unpredictable in a market crowded with IPOs and are influenced by market sentiment at the time of listing.
Disclaimer:
The writer is not a SEBI-registered analyst. He and his friends or relatives may or may not participate in the IPO. This article is intended purely for educational purposes. Investors are advised to consult their financial advisors before making any investment decisions. The grey market premium should be viewed only as an indicator and not as a reliable benchmark for listing performance.
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