Orient Cables sets IPO price band at ₹258-272; issue opens September 25

Orient Cables (India) Ltd on Tuesday announced a price band of ₹258-272 per share for its ₹552-crore initial public offering (IPO), as the networking cables and passive networking equipment maker prepares to tap the primary market. 

The IPO will open for public subscription on September 25 and close on September 29, according to a public announcement. 

The issue comprises a fresh issue of equity shares worth up to ₹320 crore and an offer for sale (OFS) of shares aggregating up to ₹232 crore. 

Fresh issue proceeds to fund capex, debt repayment 

Proceeds from the fresh issue will be used to fund capital expenditure, including the purchase of machinery and equipment and civil works at the company’s manufacturing facilities. A portion of the proceeds will also be used for the repayment or partial prepayment of certain borrowings, besides general corporate purposes. 

Orient Cables had earlier filed preliminary papers with the Securities and Exchange Board of India (Sebi) to raise ₹700 crore through the IPO, comprising a fresh issue of ₹320 crore and an OFS of ₹380 crore. The revised issue size is ₹148 crore lower, with the entire reduction coming from the OFS component. 

The company specialises in networking cables and passive networking equipment and caters to sectors including broadband, telecom, data centres, renewable energy and smart building automation. 

Its product portfolio is divided into three broad segments—networking cables and solutions; specialty power and optical fibre cables and solutions; and other allied products. 

The company is expected to make its stock market debut on October 5. 

JM Financial and IIFL Capital Services are the book-running lead managers to the issue, while KFin Technologies is the registrar.