JD Cables Makes Strong Debut on BSE SME Platform After Oversubscribed IPO
JD Cables, a Howrah-based cable manufacturer, listed on the BSE SME platform after a highly successful IPO. The offering was oversubscribed 127.8 times, raising Rs 95.99 crore at Rs 152 per share. The company's market cap stands at Rs 342.8 crore. Non-institutional investors led the demand with 179.3x oversubscription. JD Cables, specializing in power cables and conductors, reported strong financial growth with revenue of Rs 251 crore and net profit of Rs 22.1 crore. IPO proceeds will be used for working capital and debt repayment.
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JD Cables, a Howrah-based manufacturer of cables and conductors, has made a notable entry into the public market by listing on the BSE SME platform. The company's Initial Public Offering (IPO) garnered significant attention, resulting in an impressive oversubscription of 127.8 times.
IPO Details and Subscription
The IPO, which raised Rs 95.99 crore, was priced at Rs 152 per share at the upper end of the price band of Rs 144-152. At this issue price, JD Cables commands a market capitalization of Rs 342.8 crore. The grey market activity suggests a potential 18% premium, indicating possible listing gains of Rs 27 per share.
The strong demand for JD Cables' shares was evident across all investor categories:
- Non-institutional investors: 179.3x oversubscribed
- Qualified institutional buyers: 125.4x oversubscribed
- Retail investors: 106.9x oversubscribed
Company Profile and Financial Performance
JD Cables specializes in manufacturing power cables, control cables, and conductors used in electricity infrastructure. The company has demonstrated robust financial growth:
| Financial Metric | Latest Figures | Growth |
|---|---|---|
| Revenue | Rs 251 crore | 149% |
| Net Profit | Rs 22.1 crore | 400% |
Utilization of IPO Proceeds
The funds raised through the IPO will be allocated towards:
- Working capital requirements
- Debt repayment
This strategic use of funds is expected to strengthen the company's financial position and support its growth initiatives.
The successful listing of JD Cables on the BSE SME platform highlights the strong investor interest in the power infrastructure sector and the company's growth potential. As the company begins its journey as a publicly traded entity, market participants will be keenly watching its performance and future expansion plans.
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