Orient Cables targets ₹3,200–3,500 cr revenue by FY30, using its ₹552 cr IPO (₹320 cr fresh issue) to expand capacity & cut debt.

The networking and cable equipment maker opened its public issue for subscription today, made up of a Rs 320 crore fresh issue along with an offer for sale from existing shareholders.

A large chunk, Rs 150 crore, will go toward paying down debt, bringing the company’s current borrowings of Rs 240 crore down to under Rs 100 crore.

The company already borrows fairly cheaply, at under 8%, and keeps its debt fairly low compared to its equity.

Another Rs 91.5 crore is earmarked for new plant and machinery at its 11 acre manufacturing facility in Bhiwadi, Rajasthan, land for which was acquired last year.

The company’s CFO said the new equipment should help the business hit its FY30 revenue goal, building on facilities that already run at more than 70% capacity.

On the product side, Orient Cables largely sells into broadband and IT connectivity rather than residential wiring, even as larger rivals like the Birla Group’s new Ultravolt brand enter the broader cables market.

The company has also recently begun commercial production of specialised electron beam irradiated cables, used in solar, railway, automotive, naval and defence applications.

Its pricing model passes through changes in copper and polymer costs, which the company says helps keep margins fairly steady despite raw material swings.

According to the company’s leadership, Orient Cables has built its business over 20 years without external funding until now, and currently ranks among the top four players in its segment, with close to 22.9% market share.

The IPO drew strong demand from anchor investors ahead of the public opening, including Nippon Life India, ICICI Prudential AMC, Goldman Sachs Asset Management, White Oak and Birla Mutual Fund.

The company has reported a compound annual growth rate of 33.4% in recent years.

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