Stories
Orient Cables IPO Fully Subscribed on Day 1, Raises Rs 165.6 Crore from Anchor Investors
- •Orient Cables (India) Ltd's initial public offering was fully subscribed on its first day of bidding, receiving bids for 2,93,33,040 shares against 1,49,76,743 shares on offer, resulting in an overall subscription of 1.96 times.
- •The non-institutional investor category saw 3.47 times subscription, retail investors subscribed 2.42 times, and Qualified Institutional Buyers (QIBs) booked 1 percent of their reserved portion.
- •The company successfully raised Rs 165.6 crore from anchor investors on Thursday, ahead of the IPO's closure on September 29.
- •The IPO's price band is set between Rs 258-272 per share, comprising a fresh issue of equity shares worth up to Rs 320 crore and an offer-for-sale (OFS) of shares aggregating up to Rs 232 crore.
- •Proceeds from the fresh issue will fund capital expenditure for machinery and equipment, civil works at manufacturing facilities, repayment of borrowings, and general corporate purposes. Orient Cables specializes in networking cables and passive networking equipment, serving industries like broadband, telecom, and data centers.
Key Questions Answered
The initial public offering of Orient Cables (India) Ltd was fully subscribed on its first day of bidding on Friday, achieving an overall subscription of 1.96 times. The retail investor quota was subscribed 2.42 times, while non-institutional investors bid 3.47 times and Qualified Institutional Buyers booked 1 per cent. The IPO remains open until September 29, with a price band set at Rs 258-272 per share, and the company is expected to make its stock market debut on October 5.
Orient Cables plans to use the proceeds from its fresh issue for capital expenditure toward purchasing machinery, equipment, and civil works at its manufacturing facilities, as well as for the repayment or partial prepayment of certain borrowings. A portion of the funds will also be allocated for general corporate purposes.
The IPO comprises a fresh issue of equity shares worth up to Rs 320 crore alongside an offer-for-sale (OFS) of shares aggregating up to Rs 232 crore. Earlier preliminary filings with SEBI targeted a higher amount of Rs 700 crore, but the revised IPO size was reduced by Rs 148 crore with the entire reduction applied to the OFS component.
