Orient Cables files for ₹700 crore IPO papers with fresh issue and OFS

Orient Cables (India) Ltd on Thursday filed preliminary papers with capital markets regulator Sebi seeking its approval to raise₹ 700 crore through an initial public offering (IPO).

The public offer comprises both a fresh issue and an Offer for Sale (OFS) by promoters.

The fresh issue consists of equity shares worth ₹320 crore, while the OFS comprises equity shares aggregating to ₹380 crore, taking the total offer size to ₹700 crore, according to the draft red herring prospectus (DRHP).

Proceeds from the fresh issue worth ₹91.50 crore will be used to fund capital expenditure for the purchase of machinery, equipment, and civil works at the company's manufacturing facilities.

In addition, ₹155.50 crore will be used for repayment or partial prepayment of certain outstanding borrowings and a portion will also be allocated for general corporate purposes.

The company may consider a pre-IPO placement of up to ₹64 crore. If undertaken, the amount raised through the pre-IPO placement will be reduced from the fresh issue size.

Orient Cables is a manufacturing company with a primary focus on networking cables and passive networking equipment, catering to high-growth industries, including broadband, telecom, data centres, renewable energy and smart building automation.

The company manufactures a diverse range of products under the broad segments -- networking cables and solutions, speciality power, optical fibre cable and solutions; and other allied products.

IIFL Capital Services and JM Financial have been appointed by the company to manage its public offering.