Following the launch of Vidya Wires' IPO in the market, the stock price rose to a day's high of ₹58.48, recording a 12% growth in a single day. The stock debuted flat in the market, at an IPO price of ₹52 per share.
The IPO was open from December 3 to 5, and has been valued at ₹300 crore. It comprised a fresh issue of ₹274 crore, and a sale of shares worth ₹26.01 crore. The price was set at the highest point of the range at ₹52, and the IPO was subscribed 28.53 times in total. The most interest came from non-institutional investors, who applied for 55.94 times the number of shares reserved for them, The Economic Times reported.
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Should investors hold the stock?
Shivani Nyati of Swastika Investmart told The Economic Times that investors who received share allotments could consider holding the stock for the medium to long term, especially if the company improves its capacity utilisation and margins. She added that to avoid risk, investors might set a stop-loss around ₹45 and keep an eye on quarterly results for signs of future growth.
Using its expected FY25 earnings per share, Vidya Wires' stock price works out to a P/E ratio of 20.39 times at the highest price and 18.82 times at the lowest price in the band.
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The operating revenue of the company reached ₹1,295 crore in FY25, showing that the company's finances remain steadfast. The power and transmission segment added 48.06% of the company's revenue, 28.58% came from the electrical sector and 10.20% from general engineering. This shows a diverse business model, The Economic Times reported.
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