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Orient Cables Falls to Lower Circuit After Strong IPO Listing
Orient Cables is a company that makes cables and networking equipment.
Its shares began trading on the stock market on 5 October for much more than the price investors paid in its IPO.
The next day, the share price fell sharply and reached the day’s lowest permitted level.
Experts think some investors may have sold shares to secure their quick gains.
The company’s business serves several industries that use digital connections and infrastructure.
Experts say investors should look at how well the company grows its sales and profits.
They also say it is important to track orders, expansion plans and cash flow.
The article gives market growth forecasts for networking and fibre-optic cables through FY31.
Orient Cables listed on the BSE on 5 October at ₹448, a 65% premium to its ₹272 IPO price.
On 6 October, shares opened at ₹380 and fell 10% to their lower circuit of ₹363.
The article attributes the drop largely to investors booking profits after the listing gains.
Experts say investors should watch revenue growth, profitability, order execution, expansion, working capital and cash flow.
Orient Cables makes networking cables and passive networking equipment for sectors including telecom, broadband and data centres.
- Who
- Orient Cables (India), its investors, and market experts including Ravi Singh of Master Capital Services.
- What
- The share price fell 10% to its lower circuit one day after listing at a 65% premium.
- Where
- On the BSE.
- When
- The shares listed on 5 October and fell on 6 October; the article does not state the year.
- Why
- Experts attributed the fall largely to profit booking after the listing gains.
Short-term selling
Long-term business outlook
Interpreting the price fall
Short-term selling
The article says the sharp decline was largely due to investors booking profits after the stock’s strong listing.
Long-term business outlook
Experts advise looking beyond the immediate listing performance and monitoring the company’s business performance over time.
What investors should watch
Short-term selling
The lower circuit and quick reversal from the listing price highlight the stock’s sharp short-term movement.
Long-term business outlook
Experts point to market growth prospects but say investors should track revenue growth, profitability, order execution, margins, capacity use and operating cash flow.
Key facts
- IPO price
- ₹272 per share
- Listing date and price
- 5 October; listed on the BSE at ₹448, a 65% premium
- Next-day lower circuit
- ₹363, after the share opened at ₹380 on 6 October
- Gain versus IPO price at lower circuit
- 33%
- Business
- B2B manufacturer of networking cables and passive networking equipment
- Networking cables market forecast
- Projected to grow at an 18.7% CAGR from FY26 to FY31, reaching ₹8,450 crore
- Fibre-optic cables market forecast
- Projected to grow at a 17.3% CAGR, from ₹10,500 crore in FY26 to ₹23,310 crore by FY31
Quotes
Ravi Singh
Chief Research Officer at Master Capital Services
“Long-term investors may continue to track the company’s networking cable and passive networking equipment business, supported by rising demand for digital connectivity and infrastructure. Rather than focusing only on today’s listing performance, investors may monitor quarterly revenue growth, order execution, EBITDA margins, capacity utilisation and operating cash flow.”
livemint.com
Sources
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