Orient Cables (India) Ltd on Thursday filed preliminary papers with capital markets regulator Sebi seeking its approval to raise Rs 700 crore through an initial public offering (IPO).
The public offer comprises both a fresh issue and an Offer for Sale (OFS) by promoters.
The fresh issue consists of equity shares worth Rs 320 crore, while the OFS comprises equity shares aggregating to Rs 380 crore, taking the total offer size to Rs 700 crore, according to the draft red herring prospectus (DRHP).
Proceeds from the fresh issue worth Rs 91.50 crore will be used to fund capital expenditure for the purchase of machinery, equipment, and civil works at the company's manufacturing facilities.
In addition, Rs 155.50 crore will be used for repayment or partial prepayment of certain outstanding borrowings and a portion will also be allocated for general corporate purposes.
The company may consider a pre-IPO placement of up to Rs 64 crore. If undertaken, the amount raised through the pre-IPO placement will be reduced from the fresh issue size.
Orient Cables is a manufacturing company with a primary focus on networking cables and passive networking equipment, catering to high-growth industries, including broadband, telecom, data centres, renewable energy and smart building automation.
The company manufactures a diverse range of products under the broad segments -- networking cables and solutions, speciality power, optical fibre cable and solutions; and other allied products.
IIFL Capital Services and JM Financial have been appointed by the company to manage its public offering.
The public offer comprises both a fresh issue and an Offer for Sale (OFS) by promoters.
The fresh issue consists of equity shares worth Rs 320 crore, while the OFS comprises equity shares aggregating to Rs 380 crore, taking the total offer size to Rs 700 crore, according to the draft red herring prospectus (DRHP).
Proceeds from the fresh issue worth Rs 91.50 crore will be used to fund capital expenditure for the purchase of machinery, equipment, and civil works at the company's manufacturing facilities.
In addition, Rs 155.50 crore will be used for repayment or partial prepayment of certain outstanding borrowings and a portion will also be allocated for general corporate purposes.
The company may consider a pre-IPO placement of up to Rs 64 crore. If undertaken, the amount raised through the pre-IPO placement will be reduced from the fresh issue size.
Orient Cables is a manufacturing company with a primary focus on networking cables and passive networking equipment, catering to high-growth industries, including broadband, telecom, data centres, renewable energy and smart building automation.
The company manufactures a diverse range of products under the broad segments -- networking cables and solutions, speciality power, optical fibre cable and solutions; and other allied products.
IIFL Capital Services and JM Financial have been appointed by the company to manage its public offering.