Orient Cables Shares Hit Lower Circuit, Extend Post-Listing Slide

Although the stock remains well above its IPO issue price, it has lost nearly one-fifth of its value from Monday's listing price as investors booked profits following the sharp gains recorded on debut.

Orient Cables listed at Rs 450 on the National Stock Exchange on Monday, a premium of around 65 per cent over its IPO issue price of Rs 272 per share. After a strong open, the stock ended its first trading session at Rs 405.

Selling pressure intensified on Tuesday, pushing the shares to Rs 364.50. At that level, the stock was down 10 per cent from its previous close and nearly 19 per cent below its NSE listing price.

Despite the correction, the shares remained around 34 per cent above the IPO issue price.

Orient Cables is a business-to-business manufacturer specialising in networking cables and passive networking equipment. The company caters to sectors including telecommunications, broadband infrastructure, data centres, renewable energy, smart building automation, fast-moving electrical goods, automotive and electric mobility.

The company also exports its products to several overseas markets, including the UAE, Qatar, the US, Australia, New Zealand, Nepal, Singapore and the Netherlands.

Orient Cables had launched its Rs 552-crore initial public offering between September 25 and September 29. The issue comprised a fresh issue of Rs 320 crore and an offer for sale worth Rs 232 crore, with the price band fixed at Rs 258-272 per share.

Investor demand for the IPO was exceptionally strong, with the issue receiving an overall subscription of 97.28 times.

The qualified institutional buyer category was subscribed 192.68 times, while the non-institutional investor portion received bids equivalent to 121.90 times the shares on offer. The retail category was subscribed 32.21 times.

Shares were allotted on September 30 and listed on both the NSE and BSE on October 5.

On its listing day, Orient Cables opened at Rs 450 on the NSE and Rs 448 on the BSE, delivering substantial gains to investors who received shares in the IPO before profit booking led to the subsequent decline.