New Delhi-based Orient Cables (India) has launched its initial public offering (IPO) for subscription today, Friday, September 25. The issue, which closes on Tuesday, September 29, aims to raise Rs 552 crore through a combination of a fresh issue and an offer for sale.
IPO Details and Company Profile
The networking cables and passive networking equipment manufacturer has set the IPO price band at Rs 258-272 per equity share. Investors can bid for a minimum of 55 shares and in multiples thereof. The Rs 552 crore offering includes a fresh issue of Rs 320 crore and an Offer For Sale (OFS) of up to 85,29,409 equity shares, valued at Rs 232 crore. Upon successful listing, the company is projected to command a market capitalization of approximately Rs 3,100 crore. The equity shares are slated for listing on both the BSE and NSE on Monday, October 5.
Orient Cables (India) boasts nearly two decades of experience, evolving from a LAN cable manufacturer into a diversified connectivity infrastructure solutions provider. It caters to a wide array of high-growth sectors, including broadband, telecommunications, data centers, renewable energy, smart building automation and security, system integration, FMEG (Fast Moving Electrical Goods), and automotive.
Brokerage Recommendations and Risks
Brokerages have offered mixed but generally positive views on the Orient Cables IPO. Many see long-term potential, citing product diversification, anticipated market-share gains, and strategic exposure to emerging sectors like data centers, 5G, renewables, and electric vehicles (EVs). SMIFS, for instance, recommends 'subscribe' for medium-to-long-term investors, highlighting newer initiatives in renewable energy, EV, defense, and industrial applications as additional growth optionalities.
However, analysts also point out several concerns. KC Securities noted the issue's valuation at 51.6 times PE FY26, which makes it relatively demanding, alongside modest PAT (Profit After Tax) growth, suggesting a need for improved margins and earnings. Other risks include customer concentration, volatility in raw material prices, significant working capital requirements, and potential execution risks related to new product categories. Swastika Investmart, while acknowledging the company's strong market position (among the top-four networking cable players with 22.9% market share), offered a 'neutral' rating due to lower margins, customer concentration, and an ongoing brand dispute with Orient Electric.
Financial Performance and Market Outlook
For the quarter ended June 30, 2026, Orient Cables reported a net profit of Rs 32.78 crore on a total income of Rs 490.94 crore. In the full fiscal year 2026, the company posted a net profit of Rs 53.56 crore against a revenue of Rs 1,181.67 crore.
Ahead of the public issue, Orient Cables successfully raised Rs 165.60 crore from 20 anchor investors by allotting 60,88,233 shares at Rs 272 apiece. Notable anchor investors included Nippon Life India Trustee, Goldman Sachs, and various mutual funds like Aditya Birla Sun Life MF and Motilal Oswal MF.
The grey market currently indicates a premium of around Rs 113-115 per share for Orient Cables, suggesting a potential listing gain of approximately 41-42% over the upper end of the price band. IIFL Capital Securities and JM Financial Ltd are serving as the book-running lead managers, with Kfin Technologies Ltd as the registrar for the issue.