Orient Cables IPO opens with 38% GMP: Apply or avoid?
What's the story
The ₹552-crore initial public offering (IPO) of Orient Cables has opened for subscription today. The bidding will close on September 29. The issue comprises a fresh issue of 1.18 crore shares worth ₹320 crore and an offer for sale of 85.29 lakh shares worth ₹232 crore. The price band has been fixed between ₹258 and ₹272 per share. At the time of writing, the GMP for the issue stood at 38.6%.
Timeline
Issue to list on October 5
The finalization of allotment is scheduled for September 30, with refunds being initiated on October 1.
Shares will be credited to Demat accounts on the same day, and listing is expected by October 5.
The company plans to use the net proceeds from this issue toward capital expenditure requirements, repayment of outstanding borrowings, and general corporate purposes.
Business overview
Financial performance of the company
In FY26, Orient Cables' revenue from operations grew 42% YoY to ₹1,181.67 crore from ₹831.86 crore in FY25.
However, the profit after tax remained almost flat at ₹53.56 crore in FY26 compared to ₹53.32 crore a year ago.
The company was incorporated in September 2005 and specializes in manufacturing networking cables and passive networking equipment for industries such as broadband, telecoms, data centers, and renewable energy, among others.