Orient Cables IPO GMP surges 26%; issue gets 14x bidding, QIB portion remains undersubscribed

Orient Cables is seeing strong demand on the final day of its initial public offering (IPO), with subscription data and grey-market activity pointing to robust investor interest. The ₹552-crore issue has been subscribed more than 14 times so far, while its grey-market premium (GMP) has surged to ₹72 over the upper issue price of ₹272, indicating a premium of around 26% in the unofficial market.

As of 11:30 am, the Orient Cables IPO had received bids for 21.47 crore shares against 1.50 crore shares on offer, resulting into an overall subscription of 14.33 times, according to data available on the exchange.

The retail portion was subscribed 14.38 times, with bids for 10.77 crore shares against 74.88 lakh shares reserved for the category. Non-institutional investors (NIIs) led the demand, with their portion subscribed 33.07 times. Within the NII category, the segment for applications above ₹10 lakh was subscribed 30.28 times, while the ₹2 lakh–₹10 lakh segment was subscribed 38.66 times.

Qualified institutional buyers (QIBs), however, remained relatively subdued, with their portion subscribed 0.21 times so far.

Orient Cables IPO GMP indicates 26% listing gain

The strong subscription comes against the backdrop of a firm grey-market premium. Orient Cables IPO’s latest GMP stood at ₹72 on September 29. With the IPO’s upper price band fixed at ₹272 per share, the GMP indicates an estimated listing price of ₹344, implying a potential gain of around 26.47% over the issue price.

The GMP has fluctuated between ₹34 and ₹113 over the past eight sessions, indicating some volatility in unofficial market expectations ahead of the listing. However, grey-market premiums are unofficial indicators and can change before listing.

Orient Cables IPO details

The IPO comprises fresh issue of 1.18 crore shares aggregating to ₹320 crore and the OFS of 85.29 lakh shares worth ₹232 crore by existing shareholders.

The electronic networking and telecommunication cables manufacturer has fixed the price band at ₹258–272 per share, with a lot size of 55 shares. At the upper price band, retail investors need to invest a minimum of ₹14,960 for one lot.

The IPO opened for subscription on September 25 and closes today. The allotment is expected to be finalised on September 30, with the shares tentatively scheduled to list on the NSE and BSE on October 5.

Incorporated in September 2005, Orient Cables manufactures networking cables and passive networking equipment. The company caters to sectors including broadband, telecommunications, data centres, renewable energy, smart building automation and security, system integration, FMEG and automotive. The Gurugram-basedcompany has nearly two decades of experience in the networking cables and passive networking equipment industry.

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