Vidya Wires Limited IPO

Vidya Wires Limited (VWL) is an established manufacturer specializing in winding and conductivity products for essential industrial applications across India and globally. It is incorporated on December 11, 1981 & its registered office situated in Vithal Udyognagar, Anand, Gujarat, India.

Business and Products

Vidya Wires Limited specializes in manufacturing precision-engineered winding and conductivity products catering to a wide range of critical industries and applications. The company is primarily a leading manufacturer of winding wires, notably enameled copper wires.

Product Portfolio The company’s diverse product offering includes:

• Enameled Wires and Strips: Enameled Wires, Enameled Copper Rectangular Strips, Enameled Aluminium Winding Wires, Enameled Aluminium Rectangular Strips, and Enameled Aluminium Paper Covered Strips.
• Insulated Conductors: Paper Insulated Copper Conductors, Fibre Glass Covered Copper/Aluminum Conductors, Paper Insulated Copper/Aluminium Conductors (Rectangular & Round), Twin/Triple Bunched Paper Insulated Copper Strips, and Multi Paper Covered Copper Cables.
• Bare Conductors: Copper Busbar and Bare Copper Conductors.
• Specialized Wires: Specialized Winding Wires, PV Ribbon (Photo Voltaic Ribbon), Soudronic/Bare Copper Wires, and Bunched Copper Ropes/Earthing Cables.

End-Use Industries and Manufacturing VWL's products are vital components in applications such as energy generation & transmission, electrical systems, electric motors, clean energy systems (solar, windmills), electric mobility (EV), and railways. The company has established itself as an approved supplier with Power Grid Corporation of India Limited and holds UL approval, which is necessary for exporting enameled copper/aluminium wire (magnet wire) to the United States of America.

As of Fiscal 2025, the company maintained a production capacity of 19,680 MT. VWL is strategically positioned in Gujarat, leveraging the Western region's strong industrial base, which is the largest contributor to the company's sales. Based on Fiscal 2025 metrics, Vidya Wires Limited ranks third among disclosed industry peers in terms of sales, EBITDA, and Profit After Tax (PAT).

Revenue Streams

Revenue for Vidya Wires Limited is primarily derived from Revenue from operations which consists of Sale of products, categorized into Local sales and Export sales. As the Chief Operating Decision Maker (CODM) views and manages the company's operations as a cohesive whole, segment reporting is considered not applicable.

For the fiscal year ended March 31, 2025, the total consolidated revenue from operations was ₹ 14,863.91 million, with exports contributing ₹ 2,017.57 million and local sales contributing ₹ 12,781.50 million.

Objects of the Issue

The Initial Public Offering (IPO) comprises a Fresh Issue of Equity Shares aggregating up to ₹ 2,740.00 million and an Offer for Sale of up to 5,001,000 Equity Shares. The company will receive the Net Proceeds only from the Fresh Issue, and these funds will be utilized for the following core objectives:

Funding Capital Expenditure Requirements for setting up a New Project in the Subsidiary (ALCU):

• ₹ 1,400.00 million of the Net Proceeds is allocated for investment in ALCU Industries Private Limited to fund the capital expenditure for setting up a new project.
• This expansion includes setting up capacities for new products such as Copper Busbar and Bare Copper Conductors, Continuously Transposed Copper Conductors (CTC), PV Round Ribbon, Solar Cables, Enameled Copper Rectangular strips for EV motors, and various Aluminium Products.
• The funding will be provided through an unsecured inter-corporate loan to ALCU, carrying an interest rate of 7.00% per annum and a tenure of up to five years. The deployment of funds for this object is estimated across Fiscal 2026, Fiscal 2027, and Fiscal 2028.

Repayment/Prepayment of Outstanding Borrowings:

• ₹ 1,000.00 million of the Net Proceeds is proposed for the repayment or prepayment, in full or in part, of all or certain outstanding borrowings availed by Vidya Wires Limited, which includes the repayment of a bridge loan.

General Corporate Purposes (GCP):

• The balance amount of the Net Proceeds is allocated toward general corporate purposes.