Vidya Wires IPO GMP: What Does Grey Market Trends Suggest Ahead Of Dec. 3 Launch

Metal wires manufacturer Vidya Wires Ltd. is scheduled to launch its initial public offering (IPO) this week. The Rs 300-crore mainboard issue will open for subscription on Wednesday, December 3.  

Ahead of its launch, the grey market premium for the mainboard IPO has been among the top 'Business and Finance' trending topics this week, indicating strong interest among investors (especially private market investors) who would gauge the performance of the public issue based on market sentiments. Although one must note that the grey market is unregulated (not governed by authorities like SEBI) and speculative, it can fluctuate wildly. Therefore, investors use it as a sentiment gauge, but not as a guaranteed prediction.

Here’s all you need to know about the Vidya Wires IPO, including the latest grey market premium (GMP), offer size, price band, important dates and other key details.

The latest grey market premium (GMP) for Vidya Wires IPO was Rs 6 on December 2. Compared to the upper price band of Rs 52, the latest GMP indicates that the unlisted shares of Vidya Wires Limited were trading at Rs 58 per share. The GMP implies a premium of 11.54% per share over the upper end of the issue price.

The Vidya Wires IPO is a book-building issue worth Rs 300.01 crore. The mainboard issue comprises a fresh issue of 5.27 crore shares, amounting to Rs 274 crore and an offer-for-sale (OFS) of 50 lakh shares, aggregating to Rs 26.01 crore.

The company has fixed the IPO price band at Rs 48 to Rs 52 per share. Retail investors need to apply for at least one lot of 14,976 per application, based on the upper band of the issue price. The small Non-Institutional Investors (NIIs) can apply for a minimum of 14 lots, aggregating to an investment of Rs 2,09,664. On the other hand, big NIIs are required to apply for 67 shares, worth Rs 10,03,392.

MUFG Intime India Pvt. is the issue registrar, while Pantomath Capital Advisors Pvt. is the book running lead manager.

The subscription window for the Vidya Wires IPO is scheduled to close on Friday, December 5. The company is expected to finalise the share allotment status on Monday, December 8. Refunds and transfer of shares to the Demat accounts will be initiated on December 9.

The IPO listing date has been tentatively fixed as December 10. Shares of Vidya Wires Ltd. will be listed on the NSE and BSE.

Vidya Wires has proposed allocating Rs 140 crore from the IPO funds towards capital expenditure for setting up a new project under its subsidiary. The remaining IPO proceeds will be used for debt repayment and general corporate purposes.

Vidya Wires Ltd., incorporated in 1981, is a producer of aluminium and copper wires. It specialises in winding and conductivity products for various industries. Its products include precision-engineered wires, copper strips, conductors, busbars, specialised winding wires, PV ribbons and aluminium paper-covered strips.

In FY 2024-25, the company’s total income stood at Rs 1,491.45 crore, compared to Rs 1,188.49 crore in the preceding financial year. Its net profit surged significantly to Rs 40.87 crore in FY25 against Rs 25.68 crore in FY24.

Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read the red herring prospectus thoroughly before placing bids.

GMP Disclaimer: The final listing price is determined by the official price discovery mechanism on the stock exchange on listing day, which is influenced by official subscription data, anchor investor interest, and overall market conditions, not just the GMP.