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Prime Cable Industries

• Prime Cable Industries is coming out with an initial public offering (IPO) of 48,20,800 equity shares in a price band of Rs 78-83 per equity share.
• The issue will open on September 22, 2025 and will close on September 24, 2025.
• The shares will be listed on SME Platform of NSE.
• The face value of the share is Rs 5 and is priced 15.60 times of its face value on the lower side and 16.60 times on the higher side.
• Book running lead manager to the issue is Indorient Financial Services.
• Compliance Officer for the issue is Vandana.

Profile of the company

Prime Cable Industries has been engaged in the manufacturing and sale of cables and wires for the past 17 years. It manufactures low voltage (up to 1.1 KV) control cables, power cables, aerial bunch cables, instrumentation cables, housing/building wires and conductors catering to several institutions which includes EPC players, electricity boards, public sector undertakings responsible for generation, transmission and distribution of power (transmission, distribution and generation), oil & gas, mining, steel, real estate, electric panel builders, etc. It generally procures orders directly from non-government clients, government entities directly through the vendor approval process and also on open or limited tender basis.

The company is an ISO and BIS certified company which manufacture and sell cables primarily under its brand i.e. “PRIMECAB” and “RENUFO”. It derived revenue of Rs 14,094.42 lakh, Rs 8,249.98 lakh, and Rs 7,325.76 lakh from its operations for Fiscal 2025, Fiscal 2024 and Fiscal 2023 respectively. As of Fiscal 2025, it derived a revenue of Rs 5,255.10 lakh from power transmission, Rs 3,628.50 lakh from power distribution and Rs 3,867.62 lakh from power generation constituting 37.28%, 25.74% and 27.44% respectively out of the total revenue from operations. As of August 31, 2025, it has an order book for an amount aggregating to Rs 8,427.14 lakh.

The company manufactures control cables, power cables, aerial bunch cables, instrumentation cable, housing/building wires and conductors at its manufacturing units located at Narela, Delhi and Alwar, Rajasthan. It has an internal approved vendor list of suppliers which its quality team approves. The demand for low, medium, and high voltage cables in India is witnessing strong momentum, driven by rapid industrialization, infrastructure expansion, and a surge in power and grid-related investments by the government. Low voltage cables (up to 1.1 kV) continue to dominate the market, accounting for 68.9% of total demand in CY'24.

Proceed is being used for:

• Setting up a new factory to manufacture Medium Voltage (Up to 33 KV) Cables & Covered Conductors (Project)
• Repayment/prepayment, in full or in part, of certain outstanding borrowings availed by the company
• Funding working capital requirements of the company
• General corporate purposes

Industry Overview

In the India Cable Industry, Housing/Building Wires & Power Cables hold the largest market share, driven by the growing demand for residential, commercial, and smart city developments. Control Cables follow, with strong demand in sectors such as power generation, distribution, and industrial applications. By voltage, Low Voltage (LV) cables dominate the market due to their extensive use in residential, commercial, and small-scale industries. Medium Voltage (MV) and High Voltage (HV) cables are experiencing increased demand, particularly in power plants, refineries, and large industrial plants. The cable types include AB Cables, Power Cables, Control Cables, and housing/building wires, etc., contributing notably to market dynamics.

The demand for cables in India is primarily driven by a combination of factors including rapid urbanization, which fuels residential and commercial construction requiring extensive cabling; and the development of smart cities that depend on robust wiring for utilities, surveillance, and digital infrastructure. A significant push comes from government-led initiatives focused on expanding and modernizing the country’s power transmission and distribution networks, with an emphasis on substation-based generation and grid reliability. Additionally, rising investments in renewable energy sources such as solar and wind are creating a strong demand for specialized, weather-resistant cables. The ongoing expansion in industries such as manufacturing, mining, and automotive is also contributing to increased demand for Low Voltage (LV) and Medium Voltage (MV) cables across various applications.

The overall cable market in India is on a strong growth trajectory, underpinned by rapid industrialization, infrastructure development, and large-scale government investments in power and renewable energy projects. While low voltage cables (up to 1.1 kV) continue to dominate the market in volume terms - holding a 68.9% share in CY’24 - their growth is increasingly fueled by public sector initiatives such as substation electrification, feeder line upgrades, and last-mile connectivity under schemes like RDSS. At the same time, medium and high voltage cables are experiencing faster growth, driven by the need for robust transmission systems to support smart grids, utility scale solar and wind installations, and inter-substation connectivity. With rising demand for grid modernization and clean energy integration, the share of medium and high voltage segments is expected to expand steadily by CY’30, making them pivotal contributors to India’s energy transformation and transmission infrastructure landscape.

Pros and strengths

Long standing relationships with distinguished clientele leading to recurring business: The company’s long-standing relationship with its major customers has been one of the factors contributing to its growth. The company’s commitments to quality and customer service practices have been the contributing factor to its long customer relations. Over the years, the company has steadily developed a vast base of customers. Its clientele base is a testament to its commitment to quality, innovation, and reliability in the manufacturing of cables and wires. The company has built partnerships with major electricity boards, EPC players, and PSUs engaged in the power sector who rely on its products for critical applications. This network not only reflects its technical expertise but also underscores its competitive strength, as it continues to meet the evolving needs of a demanding and dynamic market.

Vendor approvals across multiple states and established BQR for Government Tenders: The company is approved by State Transmission & Distribution Utilities/Public Sector Undertakings/DISCOMs across India to tender for projects (directly or through EPC contractors) for supply of its cables and wires. Tenders floated by major vendors which includes government and EPC partners have bid qualification requirements (BQR) which covers norms such as past track record, performance and experience. Considering its multi-year track record and experience of working with the aforesaid government and EPC contractors, it is well placed to comply with these requirements for all future contracts.

Stringent quality measures and adherence to quality standards: The company’s competitive edge lies in product innovation, quality and availability. It manufactures its products within its manufacturing units, which were set up to address the specific needs of innovation, quality and availability. It has developed systems throughout its production process to ensure the quality and reliability of its products. It focuses on delivering quality products. To ensure that quality standards are consistently fulfilled, it allocates resources for quality assurance.

Risks and concerns

Dependent on limited suppliers for raw materials supply: The company is dependent on few suppliers for supply of raw material. The company has procured 78.16%, 79.14% and 80.05% of its raw material supply from top 10 suppliers in FY25, FY24 and FY23 respectively. Any shortages, delay or disruption in the supply of the raw materials it uses in its manufacturing process may have a material adverse effect on its business, financial condition, results of operations and cash flows.

Dependent on production from two manufacturing units: The company have two manufacturing units which are located at Narela, Delhi and Alwar, Rajasthan. It is dependent on its manufacturing units for the production of its products. Its manufacturing units are located in North India and events impacting those geographical areas may disrupt its production and operations. Further, its manufacturing units are subject to operating risks, such as the breakdown or failure of equipment, disruption in power supply or processes, severe weather conditions, performance below expected levels of efficiency, obsolescence, labor disputes, natural disasters, industrial accidents, infectious diseases, epidemic, pandemic, political instability, and it will be required to comply with the directives of relevant government authorities and the requirement to obtain certain material approvals to operate its manufacturing units.

High debt-to-equity ratio: The company is into capital intensive business and its debt to equity ratio is at 2.63, as on March 31, 2025 which is higher than some of its peers. As on August 31, 2025, the company has an outstanding borrowing amounted to Rs 5,283.91 lakh (includes a bill discounting of Rs 745.78 lakh). Any inability to service this debt or adhere to the covenants stipulated in its financing agreements could materially and adversely impact its business operations, financial condition, and overall performance.

Outlook

Prime Cable Industries is an Indian cable manufacturing company known for producing a wide range of wires and cables, including LT PVC/XLPE Power, Control, and AB Cables, under the brand names “PRIMECAB” and “RENUFO”. The company has vendor approvals across multiple states and established BQR for Government Tenders. On the concern side, the company relies substantially on its top 10 suppliers of raw materials used in its manufacturing processes. Any shortages, delay or disruption in the supply of the raw materials it uses in its manufacturing process may have a material adverse effect on its business, financial condition, results of operations and cash flows. Moreover, any increase or fluctuations in the raw material prices may adversely impact the pricing and supply of its products and have an adverse effect on its business, financial condition, results of operations and cash flows. 

The company is coming out with a maiden IPO of 48,20,800 equity shares of Rs 5 each. The issue has been offered in a price band of Rs 78-83 per equity share. The aggregate size of the offer is around Rs 37.60 crore to Rs 40.01 crore based on lower and upper price band respectively. On performance front, revenue from operations increased by 70.82% from Rs 8,253.14 lakh in Fiscal 2024 to Rs 14,097.72 lakh in Fiscal 2025. Moreover, the company’s Profit After Tax increased by 319.01% from Rs 179.10 lakh in Fiscal 2024 to Rs 750.45 lakh in Fiscal 2025.

The company, since its inception, consistently sought to diversify its portfolio of products which could cater to customers across diversified segments, sectors, and geographies. It got its first approval in the year 2000 to manufacture PVC Control and Power Cables and since then have expanded into multiple products like PVC cables and XLPE Cables, Aerial Bunch Cables, Flexible Wires and conductors. In accordance with this, while it seeks to continue to strengthen its existing product portfolio, it intends to further diversify into products with prospects for increased growth and profitability.