Prime Cable Industries IPO: GMP, price band among key things to know before subscribing

Prime Cable Industries will open its IPO on September 22, aiming to raise Rs 40 crore through a mix of fresh equity and an offer-for-sale. The book-built issue will close on September 24, with listing scheduled on the NSE SME platform on September 29. According to market observers, the shares are quoting at a modest GMP of about 3% over the upper price band. While GMPs are unofficial and subject to change, they suggest expectations of limited listing gains.

The IPO consists of a fresh issue of 42 lakh shares aggregating to Rs 35.02 crore and an offer-for-sale of 6 lakh shares worth Rs 4.99 crore.

The price band is set at Rs 78–83 per share. Investors can bid for a minimum of 3,200 shares. Prime Cable raised Rs 11.39 crore from anchor investors ahead of the issue, allotting 13.7 lakh shares.

Business profile

Prime Cable Industries manufactures a wide range of ISI-marked wires and cables under the brands Primacab and Renufo.

Its portfolio includes LT PVC and XLPE power cables, control and communication cables, and aerial bunched cables. The company serves industries such as power generation and distribution, oil & gas, mining, steel, and real estate.

The company has secured multiple vendor approvals across Indian states and is qualified to bid for government tenders.

Financials

The company has demonstrated rapid growth in recent years. Revenue rose 71% in FY25 to Rs 141.1 crore from Rs 82.7 crore in FY24, while profit after tax surged more than four times to Rs 7.5 crore compared with Rs 1.8 crore a year earlier.

Use of proceeds

Net proceeds from the fresh issue will be used to fund capital expenditure of Rs 14.5 crore for civil construction and plant machinery, repay Rs 4.5 crore of term loans, and meet working capital needs of nearly Rs 8 crore. The balance will go toward general corporate purposes.

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