Orient Cables Files Draft Papers for Rs. 700 crore IPO
Orient Cables (India) Pvt. Ltd., an Indian manufacturer and exporter cables, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for its planned Rs. 700 crore Initial Public Offering (IPO).
Dates of this IPO, as well as price bands for shares have not been announced yet. Allocation of shares for different classes of buyers has also not been disclosed yet.
IPO a Combination of Fresh Issue & Offer for Sale
Orient Cables’ IPO will consist of a fresh issue of shares and an offer for sale by existing shareholders. Out of the total shares offered, fresh equity shares amounting to Rs. 320 crore will be issued by the company, while existing shares worth Rs. 380 crore will be offered for sale by current shareholders.
Face value of each share offered in the IPO will be Re. 1.
Fresh Issue Proceeds to Fund Expansion, Debt Payment
According to Orient Cables’ DRHP, net proceeds from the fresh issue component of its IPO will be allocated towards capital expenditure (CapEx), debt repayment/prepayment and general corporate purposes. The proceeds from the sale of existing shares will not be transferred to the company.
Out of the total fresh issue proceeds, the company will use Rs. 91.50 crore for the purchase of machinery, equipment, and civil works at the company’s manufacturing facilities. Out of this, Rs. 3 crore will be utilised in FY26, Rs. 50 crore will be used in FY27, and Rs. 38.50 crore will be used in FY28.
Apart from this, Rs. 155.50 crore out of the fresh issue proceeds will be directed towards payment of the company’s outstanding liabilities during FY26.
The IPO proceeds will also address Orient Cables’ general corporate expenses. Not more than 25% of the gross proceeds from the fresh issue will be used towards Orient Cables’ general corporate purposes.
Company Overview and Operations
Orient Cables specializes in the manufacturing of networking cables and passive networking equipment, catering to broadband, telecommunications, and data centre projects. The company’s product portfolio also includes specialty power cables, optical fiber cables and related solutions, and other allied products.
The company operates two manufacturing facilities located in Bhiwadi, Rajasthan.
Brief Recap of Orient Cables’ Financial Performance
Orient Cables reported a revenue of Rs. 831.86 crore for FY25 with a corresponding Profit After Tax of Rs. 53.29 crore. The company’s annual revenue grew by over 25% from FY24 to FY25, whereas Orient Cables’ PAT exhibited a growth by 33% from FY24 to FY25.
Orient Cables (India) Pvt. Ltd.: Orient Cables (India) Pvt. Ltd., established in 2002, with its headquarter in Gurugram, Haryana. The company manufactures wide range of cables, including datacom, CCTV, coaxial, optical fiber, control, power, and instrumentation cables. Orient Cables (India) reported a revenue of Rs. 824.96 crore during FY25.
