A new player from the electrical manufacturing space is gearing up for its stock market debut next week. Vidya Wires, a Gujarat-based maker of winding and conductivity products, will open its initial public offering (IPO) on December 3, adding to the busy start of December for the primary market.
With a price band set at Rs 48-52 per share, the company’s issue will remain open for bidding until December 5.
Let’s take a look at the 5 key factor investors need to know before the IPO opens –
Vidya Wires IPO: Size and structure of the issue
Through this public offering, Vidya Wires aims to raise Rs 300 crore. The IPO is a mix of fresh issue and offer for sale (OFS) The IPO includes a fresh share issue worth Rs 274 crore and an OFS worth Rs 26 crore.
The funds coming from the fresh issue will flow into the company, while the OFS proceeds go to the selling shareholders.
Vidya Wires IPO: How the company plans to use the funds
A large part of the fresh capital will go towards developing the company’s new ALCO unit, which focuses on aluminium-based conductivity products.
Furthermore, the remaining sum will be used to repay debt and for general business requirements.
Vidya Wires IPO: Application size and investor categories
Talking of the application size, for retail applicants, the smallest bid size has been set at one lot of 288 shares, and investors can apply for additional lots in multiples of 288.
As per the rules laid out by the Securities and Exchange Board of India (SEBI), half of the IPO is reserved for Qualified Institutional Buyers (QIBs), 15% for Non-Institutional Investors (NIIs) and 35% for Retail Individual Investors (RIIs).
Vidya Wires IPO: Timeline for allotment and listing
The bidding window will run from December 3 to December 5, with anchor investors participating on December 2. The allotment of shares is expected to be finalised on December 8, followed by refund processing on December 9, for those who do not receive shares.
The stock is likely to list on the NSE and BSE on December 10.
Vidya Wires IPO: The business behind Vidya Wires
Vidya Wires manufactures a wide range of products used in electricity-related applications. These include enamelled copper strips, copper busbars, paper-insulated conductors, aluminium-based wires, PV ribbon used in solar modules, and other specialised winding products.
Moreover, these are the materials essential for industries involved in power transmission, electric motors, renewable energy, mobility systems and railways.
The company also has approval from the Power Grid Corporation of India and holds a UL (Underwriters Laboratories) certification, which allows it to export certain products to the United States.