Orient Cables shares make strong debut, yield over 65% listing gains

Orient Cables shares debuted on the NSE at ₹450, a premium of ₹178, or 65.44 per cent, over the issue price of ₹272.

Orient Cables share price today: Shares of Orient Cables India Ltd made a strong debut on the stock exchanges on Monday, listing at a premium of more than 65 per cent over the issue price of ₹272. 

  

The stock debuted on the NSE at ₹450, a premium of ₹178 or 65.44 per cent over the issue price. On the BSE, the stock listed at ₹448.10 per share, a premium of ₹176.10 or 64.74 per cent. The company's market valuation stood at ₹5,099.36 crore on the BSE, according to exchange data. 

 

The listing of Orient Cables was above the grey market premium (GMP) expectation, which signalled an estimated listing gain of around 44 per cent to the IPO investors. Orient Cables stock: Buy, sell or hold? 

 Ravi Singh, chief research officer from Master Capital Services, said that Orient Cables made a stellar debut in the Indian stock market today. The key factors to track now will be whether the company can sustain its revenue growth, improve profitability and execute its expansion plans while maintaining healthy working capital and cash flows, he said. 

 

"Long-term investors may continue to track the company’s networking cable and passive networking equipment business, supported by rising demand for digital connectivity and infrastructure. Rather than focusing only on today’s listing performance, investors may monitor quarterly revenue growth, order execution, EBITDA margins, capacity utilisation and operating cash flow."

 Orient Cables IPO details  

The price band for the IPO was fixed at ₹258-272 per share, and the issue was subscribed 92.27 times. The ₹552 crore IPO attracted bids for 1,38,18,98,705 shares against 1,49,76,743 shares on offer, as per the NSE data.

 

Orient Cables India IPO comprised a fresh issue of equity shares worth up to ₹320 crore and an offer-for-sale (OFS) of shares aggregating up to ₹232 crore.

 

Ahead of the IPO, the company raised ₹165.6 crore from anchor investors.

 

Orient Cables India has said that the proceeds from the fresh issue will be used for capital expenditure towards the purchase of machinery, equipment and civil works at its manufacturing facilities, besides repayment or partial prepayment of certain borrowings. A portion of the IPO funds will also be used for general corporate purposes.

 

Orient Cables specialises in networking cables and passive networking equipment and caters to industries including broadband, telecom, data centres, renewable energy and smart building automation. Its product portfolio is divided into three broad segments -- networking cables and solutions, speciality power and optical fibre cables and solutions, and other allied products. 

Disclaimer: Views and outlook shared belong to the respective brokerages/analysts and are not endorsed by Business Standard. Readers' discretion is advised.