The fresh capital will primarily fund debt reduction and capital expenditure. Out of the proceeds, ₹150 crore is earmarked to pay down borrowings, reducing the current ₹240 crore debt load to under ₹100 crore. The company currently borrows at less than 8% and maintains a debt-to-equity ratio below one.
Another ₹91.5 crore will be allocated for plant and machinery at the 11-acre manufacturing facility in Bhiwadi, Rajasthan, where the land was acquired last year. With a historical fixed asset turnover ratio of over eight, existing facilities operating at more than 70% capacity can generate ₹2,500-2,600 crore. The new machinery is expected to deliver an asset turnover of eight, supporting the FY30 revenue target, said Rahul Sharma, CFO of Orient Cables.
On profitability, the business operates on a pass-through model for volatile copper and polymer prices, allowing blended margins to sustain despite fluctuations. Addressing competitive pressures from the Birla Group’s entry into the market with Ultravolt, Chairman and Managing Director Vipul Nagpal clarified that Orient Cables does not directly compete in the residential building wire segment.
Instead, the firm focuses on broadband IT connectivity and specialised applications, having recently commenced commercial production of electron beam irradiated cables for solar, railways, automotive, Navy, and defense sectors.
“We have held our own, we are operationally very efficient, and we are constantly innovating,” Nagpal noted, highlighting the company’s 20-year bootstrapped history against multinational incumbents. “We are top four in our segment, we hold about 22.9% market share, and we certainly plan to further hold and consolidate our market shares.”
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The public issue garnered strong anchor book demand from institutional investors including Nippon Life India, ICICI Pru AMC, Goldman Sachs Asset Management (GSAM), White Oak, Birla MF. Orient Cables is currently growing at a 33.4% compound annual growth rate, positioning itself as the fastest-growing networking cable company with the highest return on equity among peers for 2025-26 (FY26).
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