Prime Cable Industries IPO: A Detailed Analysis of a Wires and Cables Maker
Prime Cable Industries Limited, a manufacturer of a wide range of cables and wires, is set to launch its SME IPO. This analysis provides a detailed breakdown of the company, its financials, and the IPO’s key aspects to help potential investors make an informed decision. Prime Cable Industries IPO opens from Sept 22-24, 2025. Get a detailed review of the IPO, including the price band (₹78-83), financials, pros & cons, and listing gain expectations.
Company Background
Established in 2008, Prime Cable Industries Limited is a manufacturer of a diverse range of cables and wires. The company produces Low Tension (LT) PVC/XLPE power, control, aerial bunched, and communication cables, among others. It sells its products under the brand names “Primecab” and “Renufo”. The company primarily serves the power generation, transmission, and distribution industries, with a significant portion of its revenue coming from government-appointed tenders and Public Sector Undertakings (PSUs). With a strong presence in the North Indian market, its manufacturing units are located in Delhi and Rajasthan. The company’s business model is heavily reliant on B2B sales and securing large-scale government contracts.
IPO Details & Financials
IPO Details
- IPO Dates: The IPO is scheduled to open for subscription from September 22, 2025, to September 24, 2025.
- Listing Date: The shares are tentatively set to be listed on the NSE Emerge platform on September 29, 2025.
- Price Band: The price band has been fixed at ₹78 to ₹83 per equity share.
- Lot Size: A retail investor can apply for a minimum of 1,600 shares, which amounts to an investment of ₹1,32,800 at the upper price band.
- Issue Size: The total IPO size is ₹40.01 crore, which includes a fresh issue of ₹35.02 crore and an offer for sale (OFS) of ₹4.99 crore.
- Objects of the Issue: The fresh issue proceeds will be used for:
- Funding capital expenditure for a new manufacturing facility in Alwar, Rajasthan.
- Repaying a portion of the company’s outstanding borrowings.
- Meeting working capital requirements.
Financial Performance
Prime Cable Industries has shown a significant turnaround in profitability in the most recent fiscal year.
| Particulars (in ₹ crore) | FY25 | FY24 | FY23 |
| Total Income | 141.10 | 82.74 | 73.73 |
| Profit After Tax (PAT) | 7.50 | 1.79 | 0.12 |
| EBITDA | 14.71 | 4.59 | 2.75 |
| Net Worth | 14.60 | 7.10 | 5.31 |
| ROE | 69.16% | 28.87% | 2.33% |
| Debt/Equity | 2.63 | 4.61 | 4.28 |
| EPS (in ₹) | 5.52 | 1.30 | 0.09 |
| P/E (at upper price band) | 15.04x | – | – |
Comparison with Peers
The Indian cables and wires market is highly competitive. While Prime Cable operates in the SME segment, its valuation can be compared with other listed players. Based on its FY25 numbers, the IPO is priced at a P/E ratio of 15.04x, which is considerably lower than larger, established players like Polycab India Ltd. (80x+) and KEI Industries Ltd. (60x+). However, it is more comparable to smaller listed companies like V-Marc India Ltd. and Dynamic Cables Ltd. This suggests a reasonable, if not attractive, valuation given its recent growth.
Pros & Cons Summary
Pros
- Strong Growth in FY25: The company has reported a remarkable surge in revenue and a significant increase in profitability in the last fiscal year, which is a key positive indicator.
- Established Brand and Client Base: It has a long-standing presence and strong relationships with clients, including government bodies, which provide a steady stream of business.
- Favorable Industry Trends: The Indian cables and wires market is expected to grow significantly, driven by infrastructure development and government initiatives.
- Clear IPO Objectives: The funds raised are being used for capacity expansion and debt reduction, which will strengthen the company’s financial and operational health.
Cons
- High Revenue Concentration: A substantial portion of the company’s revenue (over 92%) is derived from government-appointed tenders, creating high dependency and potential risk.
- High Debt-to-Equity Ratio: The company’s D/E ratio, while improving, remains high at 2.63, indicating a significant reliance on debt.
- SME IPO Risks: As an SME IPO, it is subject to lower liquidity and a potential lack of research coverage compared to a mainboard listing.
- Raw Material Price Fluctuations: The profitability is highly sensitive to the volatile prices of key raw materials like copper and aluminum.
Listing Gain Expectation
The grey market premium (GMP) for Prime Cable Industries is reported to be around ₹3 per share, which suggests a minor listing gain of approximately 3.61% over the upper price band. While the GMP is not a definitive indicator, the company’s strong recent financial performance and the reasonable valuation could lead to a positive, albeit moderate, listing gain.
Conclusion
Prime Cable Industries Limited’s IPO presents a compelling opportunity for investors looking to enter the high-growth cables and wires sector at a reasonable valuation. The company has demonstrated a sharp improvement in its financial performance, and the IPO proceeds are strategically earmarked for growth. While the high dependency on government contracts and the elevated debt levels are risks to be mindful of, the company’s brand strength and positioning in a growing market make it a worthwhile consideration. Investors with a moderate to high-risk appetite may consider subscribing to this issue for both potential listing gains and long-term capital appreciation.
(Disclaimer: Recommendations, suggestions, views and opinions expressed by experts are their own. Investors are advised to consult certified financial advisors before making any investment decisions.)
