Orient Cables shares list at 65% premium, GMP had signalled 45% lift

Orient Cables makes a 65% premium debut

Shares of Orient Cables (India) Ltd opened at Rs 450 on the NSE and Rs 448 on the BSE on Oct 5, 2026, translating to a 65% premium over the issue price of Rs 272 per share. The market‑watching GMP that traders used to gauge the debut had only hinted at a 45% premium, making the actual listing gain notably higher.

IPO structure and subscription frenzy

The company raised Rs 552 crore through a book‑built issue comprising a fresh equity issue of 1.18 crore shares (Rs 320 crore) and an offer‑for‑sale of 85.29 lakh shares (Rs 232 crore). The price band was set at Rs 258‑272 per share, with a lot size of 55 shares. Investor appetite was massive: the issue was 97.28 times subscribed overall, with the retail tranche at 32.21 times, QIBs at 192.68 times, and NII investors at 121.90 times. IIFL Capital Services Ltd and JM Financial Ltd acted as book‑running lead managers, while KFin Technologies Ltd served as registrar.

Financial backdrop

For FY 26 the company reported total income of Rs 1,182 crore, up 42% from the previous year, and profit after tax of Rs 54 crore, essentially flat on the year. Revenue from operations grew 33.5% to Rs 1,171.7 crore, but the EBITDA margin slipped to 8.2% from 8.9% a year earlier, reflecting higher raw‑material costs. Net profit rose to Rs 53.8 crore, while borrowings jumped to Rs 234.2 crore, pushing the net debt‑to‑equity ratio to 0.9.

Use of proceeds and strategic intent

Orient Cables intends to channel Rs 91.5 crore of the proceeds into capital expenditure – mainly new machinery, equipment and civil works at its plants in Bhiwadi (Rajasthan) and Bengaluru. An additional Rs 155.5 crore will go towards repayment or pre‑payment of existing borrowings, with the balance earmarked for general corporate purposes.

Ongoing brand‑name dispute

The company is still entangled in a legal tussle with the CK Birla‑promoted Orient Electric over the right to use the “ORIENT” brand for wires and cables. Analysts note that the litigation could act as an overhang on the stock until a resolution is reached.

What investors should watch

• Margin pressure: raw‑material cost hikes have already eroded operating margins.
• Customer concentration: the top ten customers generate roughly three‑quarters of revenue.
• Legal risk: the brand‑name case could affect brand perception and future contracts.
• Debt profile: borrowings have risen sharply, and the debt‑to‑equity ratio is now higher than peers.

The strong debut suggests robust demand for the shares, but the post‑listing performance will likely hinge on how the company navigates cost pressures, customer concentration and the brand dispute.