Can Orient Cables IPO deliver long-term growth for high-risk investors?
Orient Cables is aiming to raise ₹320 crore through a fresh equity issue and ₹232 crore via an offer for sale. The company has seen growth in revenue and profit but faces challenges with operating margins and customer concentration. Its promoter stake will decrease to 82.2% post-IPO from 100%. The company is also involved in a dispute concerning the usage of the 'ORIENT' brand name.
Orient Cables, a networking and specialty cable manufacturer, aims to raise ₹320 crore through a fresh equity issue to expand capacity and repay debt. Additionally, they plan to raise ₹232 crore through an offer for sale. This IPO will reduce the promoter's stake from 100% to 82.2%. Despite two years of revenue and profit growth, Orient Cables has struggled to maintain operating margins due to rising raw material costs and a heavy reliance on top customers who account for three-quarters of its revenue.
Additionally, Orient Cables is embroiled in a legal dispute with the CK Birla group's Orient Electric over the use of the ORIENT brand, which could cast a shadow over the stock until resolved. With these challenges in mind, investors might opt to wait and observe the company's financial performance post-listing. Since its incorporation in 2005, Orient Cables has catered to sectors such as telecom, smart-building automation, data centers, renewable energy, automotive, and industrial applications.
Networking cables constituted 78% of its revenue in FY26, and the company holds a market share of 22.9% in that sector. Orient Cables operates two manufacturing facilities in Bhiwadi, Rajasthan, and one in Bengaluru, which started operations in May 2026.
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