Orient Cables India Ltd Files DRHP with SEBI for Up to Rs.700 Crore IPO

Orient Cables (India) Limited is a manufacturing company with a primary focus on networking cables and passive networking equipment, operating for nearly two decades and catering to high-growth industries including broadband, telecom, data centres, renewable energy, smart building automation/ security, system integration, FMEG and automotive. The company manufacture a diverse range of products, under the following broad segments- Networking Cables and Solutions; Specialty Power, Optical Fibre Cables and Solutions; and Other Allied Products.

Orient Cables (India) Limited has filed its Draft Red Herring Prospectus (“DRHP”) with market regulator Securities and Exchange Board of India (“SEBI”). The Company plans to raise funds through initial public offerings comparing of the total offer size of  equity shares (face value ₹1 each) aggregating up to ₹7000 million (₹700 Crore). (“Total Issue Size”)

The offer comprises of fresh issue of equity shares aggregating up to ₹3200 million (₹320 crore) (The “Fresh Issue”) and offer for sale by Selling Shareholders aggregating up to ₹3800 million (₹380 Crore) (The “Offer for Sale”).

The Company proposes to utilize the net proceeds towards funding - (i) Funding of capital expenditure requirements of the Company towards purchase of machinery, equipment and civil works at its manufacturing facilities estimated amount to be ₹ 915 million [₹ 91.50 crore]; (ii) Repayment or prepayment, in full or in part, of all or a portion of certain outstanding borrowings availed by the Company estimated amount to be ₹1555 million [₹ 155.50  crores] and balance amount towards general corporate purposes. (The “Object of Issue”).

According to the 1Lattice Report, Orient Cables is one of the fastest growing players in the wires and cables industry* with a revenue CAGR of approximately 23.18% from Fiscal 2023 to Fiscal 2025. while the average revenue CAGR of its peers was approximately 11.48% during Fiscal 2023 to Fiscal 2025.

The Equity Shares that will be offered through the Red Herring Prospectus are proposed to be listed on the BSE Limited (“BSE”) and National Stock Exchange of India Limited (“NSE”). (The “Listing Details”) 

IIFL Capital Services Limited and JM Financial Limited are the Book Running Lead Managers to the issue. (The “BRLMs”)