Prime Cable Industries Makes Weak Debut with 7.23% Discount, Lists at ₹76.95 Against Moderate Subscription

Prime Cable Industries Limited, the wires and cables manufacturer, made a disappointing debut on NSE SME on September 29, 2025. After closing its IPO bidding between September 22-24, 2025, the company commenced trading with a 2.41% discount, opening at ₹81 and declining to ₹76.95 with losses of 7.23%.

Prime Cable Industries Listing Details

Prime Cable Industries Limited launched its IPO at ₹83 per share with a minimum investment of 3,200 shares costing ₹2,65,600. The IPO received a moderate response with a subscription of 8.28 times - retail investors at a solid 6.89 times, NII at moderate 9.38 times, and QIB at modest 9.91 times.

First-Day Trading Performance Outlook

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• Listing Price: Prime Cable Industries share price opened at ₹81, representing a discount of 2.41% from the issue price of ₹83, and declined to ₹76.95, delivering losses of 7.23% for investors, reflecting negative market sentiment towards the cables manufacturing sector.

Growth Drivers and Challenges

Growth Drivers:

• Diversified Product Portfolio: Comprehensive range of LT PVC/XLPE Power, Control, and AB Cables under "PRIMECAB" and "RENUFO" brands serving power, oil & gas, mining, steel, and real estate industries with ISI-marked quality products.
• Established Market Position: Long-standing relationships with distinguished clientele, vendor approvals across multiple states, and established bid-qualification requirements for government tenders, providing business stability.
• Capacity Expansion Focus: IPO proceeds of ₹14.46 crore allocated for civil construction and purchase of plant and machinery supporting production capacity enhancement and business scaling.

Challenges:

• Earnings Sustainability Concerns: Dramatic PAT surge of 319% in pre-IPO year raises questions about earnings sustainability and potential window dressing to achieve a favourable IPO valuation.
• Very High Financial Leverage: Alarming debt-to-equity ratio of 2.6,3 indicating severe financial leverage requiring careful debt management and potential strain on cash flows affecting business expansion.
• Competitive Market Pressures: Operating in a highly competitive and fragmented cables sector with numerous players affecting pricing power, market share retention, and margin sustainability.
• Small Scale Operations: Limited issue size of ₹40.01 crore and small paid-up capital, indicating restricted operational scale requiring a longer gestation period for mainboard migration.

Utilisation of IPO Proceeds

• Capacity Enhancement: ₹14.46 crore for capital expenditure towards civil construction and purchase of plant and machinery,y boosting manufacturing capabilities and production efficiency.
• Debt Reduction: ₹4.48 crore for repayment of term loan and debt facilities, improving financial leverage from the current high debt-to-equity ratio.
• Working Capital: ₹7.89 crore for working capital requirements supporting inventory management, order fulfilment, and operational scaling in cables manufacturing.

Financial Performance of Prime Cable Industries

• Revenue: ₹141.10 crore for FY25, showing exceptional growth of 71% from ₹82.74 crore in FY24, reflecting strong market demand and successful business execution in the cables sector.
• Net Profit: ₹7.50 crore in FY25, representing a remarkable growth of 319% from ₹1.79 crore in FY24, raising concerns about the sustainability of such a dramatic profit surge.
• Financial Metrics: Impressive RoNW of 69.16%, solid ROCE of 25.96%, alarming debt-to-equity ratio of 2.63, modest PAT margin of 5.32%, healthy EBITDA margin of 10.43%, and estimated market capitalisation of ₹152.06 crore.