Orient Cables (India) Limited marked a stellar debut on domestic stock exchanges on Monday, opening with gains of over 65 percent across both premier bourses following overwhelming interest during its subscription phase. However, the initial euphoria was quickly met with widespread profit booking, leading the newly listed shares to hit their lower circuit filters early in the trading session.
Listing Performance Across Major Exchanges
On BSE, shares of Orient Cables began trading at Rs 448.10 apiece against the issue price of Rs 272, registering a sharp gain of 64.74 percent. On NSE, the stock opened at Rs 450, representing an appreciation of 65.44 percent over the final issue price. This provided immediate and substantial paper profits to alloted applicants looking to capitalize on the initial listing surge.
Sharp Profit Booking Forces Lower Circuit
The aggressive opening was swiftly followed by a wave of selling as market participants moved to lock in their gains. By 10:10 AM, the stock on BSE had tumbled by Rs 44.80, or 10.00 percent from its listing price, touching Rs 403.30 and triggering the mandatory lower circuit mechanism. A similar drop occurred on NSE, where the share price fell by Rs 45.00, or 10.00 percent from the opening mark, to freeze at Rs 405.00.
Issue Details and Subscription Milestone
The initial public offering of Orient Cables opened for bidding on September 25 and closed on September 29. The issue generated massive interest across investor categories, concluding with an overall subscription figure of 92.27 times. Orient Cables had established a price band of Rs 258 to Rs 272 per equity share with a face value of Re 1 each. Subsequent to the close of bidding, share allotments were finalized on September 30, with equity shares credited to successful applicants demat accounts on October 1.
Capital Structure and Fund Raising
Through this public offer, Orient Cables mobilized a total of Rs 552 crore by issuing 2,02,94,114 equity shares. The offering consisted of a fresh issue of 1,17,64,705 shares worth Rs 320 crore alongside an Offer for Sale (OFS) component of 85,29,409 shares aggregating to Rs 232 crore from existing selling shareholders.
Business Profile and Planned Utilization of Proceeds
Orient Cables operates as a specialized provider of networking cables and passive networking equipment, serving essential connectivity requirements across sectors including telecom, broadband, data centers, renewable energy, and smart building automation. The net proceeds derived from the fresh issue segment will be directed toward capital expenditure, including the acquisition of machinery and equipment, alongside the full or partial prepayment of outstanding borrowings. A designated portion of the corpus is also set aside for general corporate purposes.
