Vidya Wires files draft papers with SEBI for an IPO

Vidya Wires Ltd has filed its draft red herring prospectus (DRHP) with the capital market regulator, Securities and Exchange Board of India (SEBI), for an initial public offering (IPO).

The firm ranks as one of the largest producers of winding and conductivity items across various crucial sectors and applications. According to the CareEdge Report, the company stands as the fourth largest manufacturer in the industry, holding a 5.9% share of the installed capacity in the Indian market for FY24. With ambitions to bolster manufacturing capabilities and broaden its range of products, the company aims to improve its standing in the market.

Its product lineup features precision-engineered wires, enameled copper rectangular strips, paper insulated copper conductors, copper busbars, bare copper conductors, specialized winding wires, PV ribbons, and aluminum paper covered strips, among others.

The company has cultivated a diverse customer base of more than 370 over the last three financial years, with no single customer accounting for more than 9% of its annual revenue. This strategy has effectively mitigated dependence on a limited number of clients and bolstered revenue potential through a wide-ranging customer base. The company produces more than 6,400 SKUs of winding and conductivity products, with thicknesses varying from as thin as 0.07 mm to as thick as 25 mm.

IPO Issue Details

The public offering consists of a new issuance of equity shares totaling up to Rs. 320 crore by the company (new issue) and an offer for sale (OFS) of up to 10,000,000 equity shares by the Promoter Selling Shareholders, each with a face value of Re 1.

The company is promoted by Shyamsundar Rathi, Shailesh Rathi, and Shilpa Rathi.

Vidya Wires plans to use the net proceeds to support capital expenditure needs for establishing a new project in its subsidiary, ALCU, as well as to repay or prepay in full or in part certain outstanding loans obtained by the company, and for general corporate activities.

Pantomath Capital Advisors Private Limited and IDBI Capital Markets & Securities Limited serve as the Book Running Lead Managers for the issue.

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