India's Orient Cables Plans to Raise Rs 5.52 Billion to Expand Cable Capacity

en.Wedoany.com Reported - On September 22, India-based communication cable and passive network equipment manufacturer Orient Cables announced its initial public offering (IPO) plan, aiming to raise Rs 5.52 billion, comprising a fresh issue of Rs 3.2 billion and an offer for sale by existing shareholders of Rs 2.32 billion. The price band has been set at Rs 258 to Rs 272 per share, with the subscription period running from September 25 to 29.

Of the fresh issue proceeds from this IPO, Rs 915 million will be used for capital expenditure at manufacturing facilities, including the purchase of machinery and equipment as well as civil works related to equipment installation; another Rs 1.555 billion will be used to repay or prepay a portion of existing borrowings, with the remaining funds allocated for general corporate purposes. Orient Cables' previously disclosed capital expenditure plan is to be implemented over three fiscal years, with Rs 30 million invested in FY2026, Rs 500 million in FY2027, and Rs 385 million in FY2028.

The company currently operates two manufacturing facilities in Bhiwadi, Rajasthan, and is building a third plant. As of the end of March 2025, its annual combined capacity for network cables, specialty power cables, and fiber optic cables stood at 794,976 kilometers, with an annual capacity of 5.04 million units for other supporting products. The company had previously planned to expand its existing cable and supporting product manufacturing capacity by adding new equipment and production lines, and to enter product areas such as electron beam cables, solar junction boxes, tethered drones, and wiring harnesses.

Orient Cables' products cover network cables and solutions, specialty power and fiber optic cables, and passive network supporting products, primarily used in broadband communications, telecommunications networks, data centers, renewable energy, and smart buildings. The company's official website currently lists its manufacturing footprint as including Bhiwadi Plant I, Plant II, and the under-construction Plant III, along with a production base in Bangalore.

This fundraising scale represents a reduction of Rs 1.48 billion from the company's previously submitted Rs 7 billion IPO plan, with the entire reduction coming from the shareholder offer-for-sale portion; the Rs 3.2 billion fresh issue size remains unchanged. Under the latest arrangement, the company's shares are expected to list on October 5.