On December 10, Wednesday, Vidya Wires IPO made a flat debut at the stock market, settled at INR 52.13 on BSE, and sold the shares with a microscopic premium of 0.25 per cent from the issue price of INR 52 apiece. The stock is to embark on its maiden trade session on its very issue price on NSE.
Image for representational purpose only (source: https://www.alcircle.com/)
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The Gujarat-based wire manufacturer has been listed much below the lines of expectation, indicating an underperformance. Prior to the debut, in the unofficial market, the IPO commanded the grey market premium (GMP) of INR 4 apiece. This initially indicated the listing price to be around INR 56, fetching a premium of 7.69 per cent over the issue price band. However, the GMP remained around INR 5.5 to 6 through the bidding period.
The IPO was open for subscription from December 3 to December 5, which offered shares within the price band of INR 48-52 per share, the lot size containing 288 shares. It made a total of INR 3 billion, raised via IPO. This included a fresh sale of 52,692,307 shares worth INR 2.74 billion and the offer-for-sale (OFS) was up to 5,001,000 shares, which was worth 260 million.
The issue secured an overall subscription of 26.59 times in total and attracted bids of almost 60 billion through 1.83 million applications. The subscription was made 5.12 times under the section of qualified-institutional bidders (QIBs) and 51.98 times under that of the non-institutional investors (NIIs). The quota for retail investors was booked 27.86 times.
Separately, On December 2, the company announced that it was able to raise INR 900 million from anchor investors before its IPO opening. The anchor book registered the participation from Bank of India MF, Bandhan MF, LIC MF, Maybank Securities, Alchemy Emerging Leaders of Tomorrow Series 2, and MAIQ Growth Scheme, solidifying a firm institutional interest. Now the manufacturer intends to utilise the proceeds for funding capital expenditures for new initiatives in its subsidiary ALCU, clear market debts and meet basic corporate purposes.
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