Vidya Wires
- Vidya Wires is coming out with a 100% book building; initial public offering (IPO) of 6,20,84,333 shares of 1 each in a price band Rs 48-52 per equity share.
- Not more than 50% of the issue will be allocated to Qualified Institutional Buyers (QIBs), including 5% to the mutual funds. Further, not less than 15% of the issue will be available for the non-institutional bidders and the remaining 35% for the retail investors.
- The issue will open for subscription on December 03, 2025 and will close on December 05, 2025.
- The shares will be listed on BSE as well as NSE.
- The face value of the share is Rs 1 and is priced 48.00 times of its face value on the lower side and 52.00 times on the higher side.
- Book running lead managers to the issue are Pantomath Capital Advisors and IDBI Capital Markets & Securities.
- Compliance Officer for the issue is Alpesh Makwana.
Profile of the company
Vidya Wires is 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 Busbar and Bare Copper Conductors, Specialised Winding Wires, PV Ribbon and Aluminum Paper Covered Strips, among others. Its products are used in applications such as energy generation & transmission, electrical systems, electric motors, clean energy systems, electric mobility, and railways. It is the 4th largest manufacturers in its industry with a 5.7% market share of installed capacity in FY25 in India. With plans to expand manufacturing capabilities and further diversify its product range, the company seeks to enhance its market position.
The company is pre-approved suppliers with Power Grid Corporation of India Limited. It is a UL approved company which enables it to export enameled copper/aluminium wire (also known as magnet wire) to the United States of America. Its operations are located in Anand, Gujarat, which has logistics convenience through various major seaports of the state like Hazira and Mundra which it uses for exporting its products as well as importing its raw materials.
The company has integrated and continue to further integrate environmental, social and governance practices into its business with a sustainable and responsible approach to its operations. Under its focus on environment and sustainability initiatives, it has sourced an average of about 25% of its total power requirements from renewable sources like solar and windmills in the three months period ended June 30, 2025, and the last 3 Fiscals. Its manufacturing facilities are accredited with ISO 9001:2015 (Quality Management System), ISO 45001: 2018 (Occupational Health & Safety Management System), and ISO 14001:2015 (Environment Management System) certifications. The company’s products are compliant with various quality standards including the Bureau of Indian Standards.
Proceed is being used for:
- Funding capital expenditure requirements for setting up new project in its subsidiary viz. ALCU
- Repayment/prepayment, in full or part, of all or certain outstanding borrowings availed by the company
- General corporate purposes
Industry Overview
Enamel copper winding wire, also known as magnet wire, is a highly conductive copper wire coated with a thin layer of insulation, making it ideal for electrical winding applications. Made from electrolytically refined copper, these wires are annealed to enhance their mechanical properties, including tensile strength and flexibility. The demand for enameled copper winding wire in India has historically been driven by the growth of the automotive and power sectors, with copper’s superior conductivity and durability making it essential for motors, transformers, and electrical components. Currently, the market is seeing a significant boost due to India’s shift towards energy-efficient technologies, particularly in electric vehicles (EVs), renewable energy (solar and wind), and smart grids. The increasing adoption of EVs and the rise in solar and wind power installations are key drivers of demand, as these sectors require substantial amounts of copper. Looking ahead, India’s ambitious renewable energy goals and EV penetration targets are expected to further fuel the market, driving a continued rise in the need for enameled copper winding wires in the coming years.
Meanwhile, Enamel aluminium winding wire is a type of wire made from aluminium and coated with a thin layer of insulation, typically enamel. This insulation ensures electrical isolation while preserving the wire's flexibility and mechanical integrity, making it ideal for use in winding electrical components like transformers, motors, and generators. Historically, the demand for enamelled aluminium winding wire in India has been driven by its cost-effectiveness compared to copper and its lightweight properties, which have made it a popular choice across sectors such as automotive, electronics, and home appliances. Manufacturers have increasingly turned to aluminium to reduce production costs while maintaining high performance, especially in price-sensitive markets. The automotive sector, in particular, has favoured aluminium for electric motors to reduce vehicle weight and improve efficiency.
In India’s wire and cable sector, aluminium and copper are essential materials due to their excellent electrical conductivity and lightweight properties. Copper is widely used in manufacturing electrical cables, wiring harnesses, and communication cables because it ensures efficient transmission of electricity and data. Its high conductivity makes it ideal for applications where performance is critical, such as in power distribution networks and industrial applications. The outlook for this industry is expected to be stable on account of increased urbanization, investments in infrastructure, expansion of manufacturing sector and demand of end-user segments such as telecom, electricals, automobiles etc. The focus on sustainability and adoption to renewables is expected to aid the growth in the sector. Furthermore, the government initiatives in the end-user sectors will support the demand for wires and cables. However, geopolitical tensions, fluctuations in prices of raw materials and global market sentiments may impede the growth for wires and cables industry.
Pros and strengths
Among the top 5 manufacturers in its Industry in India: The company is 4th largest manufacturers in its industry in the Indian winding and conductivity product in terms of installed capacity. Its current production installed capacity is 19,680 MT per annum. Considering the proposed capacity expansion in its subsidiary, ceteris paribus, it will be the 3rd largest manufacturer in India. It has a 5.7% market share of installed capacity in its industry in FY25 in India which is expected to go up to 11.0% post proposed expansion. Its product offerings cater to a number of industries across applications. Its operating facilities are located in Anand, Gujarat which offers it logistics convenience through various major seaports which it uses for exporting its products as well as importing its raw materials.
De-risked business model with a wide customer base: In the three months period ended June 30, 2025, and the last 3 Fiscals, the company sold its products to over 318 customers, including over 19 international customers in more than 18 countries across 5 continents including the United States of America, Saudi Arabia, UAE, Australia, Canada, Egypt, Singapore, etc. None of its customer singly contributed over 9% of its annual revenues, which has effectively de-risked its business model from dependence on limited number of customers and insulates its revenue potential due to its broad customer base.
Backward integration for quality control as well as sustainability initiatives: One of its main raw materials is copper rods, which is made from copper cathodes. With a view to maintain consistency and control over the quality and supply of its raw material, the company has done backward integration in its manufacturing facility to produce oxygen free copper rods from copper cathodes, which are used to manufacture its final products. Out of its total requirement of copper rods, about 35%-40% was manufactured in-house from copper cathodes and remaining was purchased from its suppliers during the three months period ended June 30, 2025, and the last 3 Fiscals. Its manufacturing facilities are accredited with quality management system certificates for compliance with ISO 9001:2015 (Quality Management System), ISO 45001:2018 (Occupational Health & Safety Management System) and ISO 14001:2015 (Environment Management System).
Presence in a strategically located region: The company’s operating facilities are located in Anand, Gujarat, which has the advantage of access to various seaports in Gujarat for the import and export of material. It mostly uses the ports of Hazira and Mundra for exporting its products as well as importing its raw materials. While it sells to customers in states across India, it generates the majority of its revenue from the states of Gujarat and Maharashtra which constituted 68.66%, 69.88%, 69.45% 65.54% of its revenue from operations in the three months period ended June 30, 2025, and Fiscals 2025, 2024 and 2023, respectively.
Risks and concerns
Significant reliance on Vedanta & Marubeni for raw materials: The company is dependent upon its top 5 suppliers for most of its raw materials supplies. The company has procured 89.82%, 86.26%, 89.27% and 82.21 of its total raw material from top 5 suppliers in the three months period ended June 30, 2025, and Fiscals 2025, 2024 and 2023 respectively. Out of the top 5 suppliers, the company is especially dependent upon its top 2 suppliers i.e. Vedanta Limited and Marubeni Corporation who collectively contributed over 60% of its total purchase in each of the three months period ended June 30, 2025, and Fiscals 2025, 2024 and 2023. Any dispute with such suppliers may lead to interruption in its supplies of raw materials.
Revenue heavily skewed toward Western India: The company’s revenue is concentrated in western India in the states of Gujarat and Maharashtra. The company has garnered 80.15%, 82.69%, 82.32% and 84.07% of its total revenue from western India in the three months period ended June 30, 2025, and Fiscals 2025, 2024 and 2023 respectively. Any slowdown or disturbance in these states may impact its business. While the company has not faced any such situation during the three months period ended June 30, 2025, and Fiscals 2025, 2024 and 2023, it cannot assure that such an event will not occur in the future.
Talent acquisition & retention challenges: The company’s success is substantially dependent on its ability to recruit, train and retain skilled manpower. Its attrition rate of employees for the three months period ended June 30, 2025 and Fiscals 2025, 2024 and 2023 was 7.69%, 23.82%, 13.76%, and 12.67%, respectively. High attrition rates lead to an increase in its training and recruitment costs, which may have an adverse impact on its profitability and financial condition. High attrition and competition for manpower may limit its ability to attract and retain the skilled manpower necessary for it to meet its future growth requirements. There can be no assurance that skilled manpower will continue to be available in sufficient numbers and at wages suitable to its requirements. While the company has not faced any claim from any staff during the three months period ended June 30, 2025, and the Fiscals 2025, 2024 and 2023, in case it faces any claim from any staff it may impact its ability to attract skilled staff and may impact its financials.
High dependence on power, engineering & electrical sectors: Over 80% of the company’s revenues from operations was derived from supplies to power & transmission, general engineering, and electrical sector in the three months period ended June 30, 2025, and last 3 Fiscals. The company has garnered 81.09%, 87.13%, 87.33% and 89.54% of its total revenue from power & transmission, general engineering, and electrical sector in the three months period ended June 30, 2025, and Fiscals 2025, 2024 and 2023 respectively. In case of any slowdown in the sectors the company is catering to, it will impact its business and operations. While the company has not faced any such situation in the three months period ended June 30, 2025, and Fiscals 2025, 2024, and 2023, it cannot assure that such an event will not occur in the future.
Outlook
Vidya Wires is engaged in manufacturing copper and aluminum wires. The company manufactures winding and conductivity products for various industries, including precision-engineered wires, copper strips, conductors, busbars, specialized winding wires, PV ribbons, and aluminum paper-covered strips. The company has diversified customer base having longstanding relationships with customers and suppliers. On the concern side, over 80% of its revenues from operations was derived from supplies to power & transmission, general engineering, and electrical and any slowdown in these sectors may impact its business. Moreover, the company does not have long term agreements for supply of products or raw material with most of its raw material suppliers or customers. Failure to successfully continue its raw material suppliers/customer relationships could adversely affect it.
The issue has been offering 6,20,84,333 shares in a price band of Rs 48-52 per equity share. The aggregate size of the offer is around Rs 298.00 crore to Rs 322.84 crore based on lower and upper price band respectively. Minimum application is to be made for 288 shares and in multiples thereon, thereafter. On performance front, the company’s revenue from operations increased 25.32% to Rs 14,863.91 million in Financial Year 2025 from Rs 11,860.73 million in Financial Year 2024. The increase was mainly driven by higher demand and improved supply of goods, further supported by the overall expansion of the Indian industry. The company recorded a profit for the year of Rs 408.72 million in Financial Year 2025 compared to profit for the year of Rs 256.93 million in Financial Year 2024, a jump of 59.08%.
The company intends to, and are in the process of, expanding its manufacturing capacities for existing and new products to meet the product demand from its existing customers and to serve new customers. After commissioning of the Proposed Project, its total installed capacity will increase by 18,000 MT from the current 19,680 MT to 37,680 MT. It will continue to look for expansion opportunities in existing and new product lines. The market shares of the company in terms of installed capacity in its industry, ceteris paribus, as of FY25, is around 5.7%, which is expected to go up to 11.3% post proposed expansion. It plans to sell more to current end-user industries and further explore new industries to sell its current and proposed products to further enhance its market share and capture higher share of wallet of its customers. It intends to expand its market share by targeting upcoming and key growth sectors such as renewable sectors including solar and windmill, transformers for AI data centre, inverter duty transformers, power transformers and electric vehicles. It seeks to expand its customer base and utilize its new proposed additional capacity to develop new products for these sectors.
