Vidya wires Ltd

Vidya wires

Vidya wires incorporated in 1989, produces Wire & Conductivity products including Enameled Wires, Enameled Strips, Paper Insulated Conductors, Busbar and Bare Conductors, PV Ribbons, etc. These are used in energy generation & transmission, electrical systems, electric motors, clean energy systems, among other applications. Some of its marquee clients include Adani Wilmar, Atlanta Electricals, Schneider Electric Infrastructure, Lubi Industries LLP, Suzlon Energy Limited, etc.

Bankers for IPO: Pantomath Capital Advisors, IDBI Capital Markets

Auditor: O.P. Rathi & Co.

RHP filed: 27th November 2025

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Delta’s View : Skip

Vidya wires is getting listed at a valuation of ~26x P/E (TTM), a valuation close to 5 year median P/E of its peers - Precision wires & Ram ratna wires. It seems a below average business in a competitive commodity-like space with tight gross margins (~8-10%) and limited pricing power. At this valuation, we don't feel comfortable to invest and would like to evaluate the company after a few quarters of listing. 

Based on the current GMP of ~11%, One can expect flat to moderate listing gains only, provided the GMP sustains.

The company produces precision wires and conductivity products from Copper rods / cathodes, with the business being more like a commodity player with limited pricing power & product differentiation. Copper rods are produced from its cathodes, where the company procures more than 65% of its rod requirements directly from suppliers. It leaves the company with only limited value addition, i.e., annealing, shaping, insulating & polishing it based on clients requirement. It has a gross margin as low as ~6.5-7.5% which is even inferior to the peer gross margins ~9-10%. Primary cost is the direct cost of purchasing copper cathodes/rods. This also makes it vulnerable to copper prices. Because it must pass most of these costs through to customers with a very little lag (less than ~1-2 months).

Fundraising: No external funding raised from investors

Debt: 163 cr total outstanding. D/E ~0.9x

Fresh Issue: 274 Crore Fresh Issue to be utilized for capacity expansion & repayment           of certain borrowings 

Offer For Sale: 26 Crore worth of shares to be sold by Promoters - Shyamsundar ~13 cr & Shailesh ~13 cr

• The company operates in a competitive low margin industry with minimal product differentiation. Its Gross margins were just ~7.2% in FY25, having historically remained in the tight range of 6.5-7.5%. It has a PAT margin of 2-3% (~2.7% FY25).

• Its Gross margins are much lower ~7% than its peers, Precision wires ~9% and Ram ratna wires ~10%, ranking it below the peer group. 

• Large direct costs for purchasing copper cathodes and rods make its revenue vulnerable to any downturn or volatility in copper prices. From 2017-19 and 2021-22, Copper prices increased ~22% and ~15% CAGR respectively, leading to a sharp rise in the company's revenue by ~35% and ~40% over the period, demonstrating a strong correlation on the commodity’s prices. The company has to pass-on metal prices almost immediately in less than 1-2 months to its customers. 

• The company still purchases over ~65% of its copper rod requirements from external suppliers, which means there is only limited value that the company can add, i.e., annealing, shaping, insulating, polishing copper rods into products.

• The company’s total customer growth was flat in the last 3 years (FY23 ~453, FY25 ~458). Revenue growth was driven primarily by demand from existing customers, which might have been a temporary rise in demand. 

• The company’s ask valuation is ~1,106 cr which is 26x P/E (TTM) and 0.7x P/S. Its listed peers, Precision wires Ltd had 39x P/E & 1x P/S and Ram ratna wires had 40x P/E & 0.7x P/S. Vidya wires valuation is almost equal to 5 year median P/E of Precision wires & Ram ratna wires of ~26 P/E. 

Business

• The company produces Wire & Conductivity products which includes Enameled Wires, Enameled Strips, Paper Insulated Conductors, Busbar and Bare Conductors, Specialised Winding Wires, PV Ribbon. These are made of Copper (majorly) and Aluminium.

• Primary raw materials are rods and cathodes of copper and aluminium. Most of its products are manufactured from copper rods, which is produced from copper cathodes. 

• These products have applications in energy generation & transmission, electrical systems, electric motors, clean energy systems, electric mobility, and railways. About ~50% of revenue comes from its use in the Power & transmission industry.

• It served 458 customers in FY25 with marquee names such as Adani Wilmar, Atlanta Electricals, Schneider Electric Infrastructure, Lubi Industries LLP, Suzlon Energy Limited, among others.

• It had current production capacity of 19,680 MTPA with a capacity utilisation of 94.5% during the 3M FY26. 

• Its key suppliers include Vedanta, Hindalco Industries, Bharat Aluminium Company, Ducab Metals LLC, etc

History and Leadership

• The company was incorporated in 1981 by Shyamsundar Rathi, with the establishment of the first unit at Anand, Gujarat.

• Shyamsundar Rathi serves as the Chairman and Whole-time Director of the company. He has been working in the winding and conductivity products industry for over 43 years now.

• He was also elected as the president of Winding Wires Manufacturer’s Association of India in the year 2018-2019.

• Shailesh Rathi, son of Shyamsundar serves as the Managing Director of the company. He had studied Electrical Engineering in Bachelors’ from Sardar Patel University.

• Wife of Shailesh – Shilpa Rathi is the Whole Time Director of the company. She oversees the HR and Purchases department.

• The company is promoter owned with 99.9% shareholding by its promoters, with ~44% shares held by Shyamsundar and ~48% held by Shailesh.

Financial snapshot