Orient Cables files draft papers with SEBI for ₹700cr IPO
What's the story
Orient Cables Ltd has filed preliminary documents with the Securities and Exchange Board of India (SEBI) for its proposed initial public offering (IPO). The company plans to raise ₹700 crore through this public offer. The IPO will be a combination of a fresh issue and an Offer for Sale (OFS) by promoters, as stated in the draft red herring prospectus (DRHP).
Offer structure
IPO comprises fresh issue, OFS
The proposed IPO will include a fresh issue of equity shares worth ₹320 crore and an OFS by promoters worth ₹380 crore. This brings the total offer size to ₹700 crore. The funds from the fresh issue will be used for capital expenditure, including purchasing machinery and equipment, as well as civil works at the company's manufacturing facilities.
Fund allocation
Funds will also be used for debt repayment
Along with capital expenditure, the funds from the fresh issue will also be used for debt repayment or partial prepayment of certain outstanding borrowings. A portion of the funds will also be allocated for general corporate purposes. The company may consider a pre-IPO placement of up to ₹64 crore, which would reduce the size of the fresh issue if undertaken.
Business profile
Specializing in networking cables, passive networking equipment
Orient Cables is a manufacturing company that specializes in networking cables and passive networking equipment. It caters to high-growth industries like broadband, telecom, data centers, renewable energy, and smart building automation. The company offers a wide range of products under categories such as networking cables and solutions, specialty power, optical fiber cable, and solutions, among other allied products.
Information
IIFL Capital, JM Financial are the managers for the offering
IIFL Capital Services and JM Financial have been appointed as the managers for Orient Cables' public offering. The appointment comes as part of the company's strategy to ensure a successful launch and execution of its IPO in the capital market.