Orient Cables IPO Surges to 8.32x Subscription on Day 2: Strong Demand from Investors, ETRealty
NEW DELHI: The initial share sale of Orient Cables (India) Ltd was subscribed 8.32 times on the second day of bidding on Monday.
The IPO received bids for 12,45,46,565 shares against 1,49,76,743 shares on offer, according to data available with the NSE.
The portion for non-institutional investors garnered 17.37 times subscription, while the category for retail investors was subscribed 9.16 times. The quota for Qualified Institutional Buyers (QIBs) received 6 per cent subscription.
The initial public offering of Orient Cables (India) Ltd was fully subscribed on the first day of bidding on Friday.
Orient Cables (India) Ltd on Thursday raised Rs 165.6 crore from anchor investors.
The company’s IPO will close on September 29. The price band for the IPO has been fixed at Rs 258-272 per share.
The IPO comprises a fresh issue of equity shares worth up to Rs 320 crore and an offer-for-sale (OFS) of shares aggregating up to Rs 232 crore.
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.
Earlier, the company had filed preliminary papers with Sebi to raise Rs 700 crore through an IPO, comprising a fresh issue of Rs 320 crore and an OFS of Rs 380 crore. The revised IPO size is therefore smaller by Rs 148 crore, with the entire reduction coming from the OFS component.
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.
The company is expected to make its stock market debut on October 5.
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