On Thursday, one of the leading companies, Orient Cables, submitted its DRHP Draft Red Herring prospectus with the market capitalization to SEBI in order to raise funds of ₹700 crore through an Initial Public Offering (IPO).
According to the DRHP, this IPO comprises a fresh issue of worth ₹320 crore and an Offer-for-Sale of up to ₹380 crore by promoters.
The proceeds of ₹91.50 crore raised from the fresh issue will be utilized to purchase machinery, equipment, and civil works at the company’s manufacturing facilities.
Funds of ₹155.50 crore will be utilized for repayment/prepayment of certain borrowings taken by the company. Lastly, the remaining funds will be used for the company’s general corporate purposes.
The company may plan for the pre-IPO placement of up to ₹64 crore. If the company decides to go with the pre-IPO placement plan, then the amount of ₹64 crore will be get reduced from the fresh issue size.
Orient Cables is a leading manufacturer of networking cables and passive networking equipment. It serves high-growth industries such as broadband, telecom, data centres, renewable energy, and smart building automation.
IIFL Capital Services and JM Financial have been appointed to manage the IPO.
Under the broad segments, the company manufactures a wide range of products, such as networking cables and solutions, specialty power, and optical fibre cable and solutions.
Orient Cables IPO Prospectus:
| DRHP Draft Prospectus: | Click Here |
| RHP Draft Prospectus: | To be Updated Soon |
Orient Cables Company Financial Report
Amount ₹ in Crores
| Period Ended | Revenue | Expense | Profit After Tax |
| 2023 | ₹546.09 | ₹511.22 | ₹25.96 |
| 2024 | ₹664.98 | ₹610.62 | ₹40.07 |
| 2025 | ₹831.86 | ₹760.15 | ₹53.29 |
Orient Cables IPO Valuation – FY2025
Orient Cables IPO valuations detail like Earning Per Share (EPS), Price/Earning P/E Ratio, Return on Net Worth (RoNW), and Net Asset Value (NAV) details.
| Earning Per Share (EPS): | ₹5.22 (Basic) |
| Price/Earning P/E Ratio: | N/A |
| Return on Net Worth (RoNW): | 34.58% |
| Net Asset Value (NAV): | ₹17.71 |
Peer Group Comparison
| Company | EPS | PE Ratio | RoNW % | NAV | Income |
| RR Kabel Limited | 27.58 | 48.79 | 15.65% | 190.37 | – Cr. |
| Polycab India Limited | 134.34 | 50.07 | 22.54% | 658.58 | – Cr. |
| Finolex Cables Limited | 45.82 | 21.11 | 13.42% | 359.31 | – Cr. |
| Havells India Limited | 23.49 | 65.49 | 18.63% | 133.04 | – Cr. |
| KEI Industries Limited | 75.65 | 50.39 | 15.59% | 605.50 | – Cr. |
| Paramount Communications Limited | 2.85 | 20.43 | 12.95% | 23.51 | – Cr. |
| Birla Cable Limited | 1.63 | 110.17 | 1.94% | 84.42 | – Cr. |
| Sterlite Technologies Limited | (2.54) | NA | (5.23)% | 40.79 | – Cr. |
Objects of the Issue
- Funding of capital expenditure requirements of our Company towards purchase of machinery, equipment and civil works at our Manufacturing Facilities;
- Repayment or prepayment, in full or in part, of all or a portion of certain outstanding borrowings availed by our Company; and
- General corporate purposes (collectively, the “Objects”)
IPO Lead Managers aka Merchant Bankers
- IIFL Securities Limited
- JM Financial Limited
