JD Cables IPO Anchor Book Secures ₹27 Crore, including HDFC Bank, Venture X Fund I

A West Bengal-based company that has a well-established name in the wires and cables industry, JD Cables Limited, has moved a step closer to its stock market debut with the launch of its Initial Public Offering (IPO). Ahead of the issue opening for everyone, investment players like HDFC Bank and Venture X Fund I have acquired Shares of ₹27 crore along with 18 other anchor investors, underscoring the trust in the smaller-scale SME IPO. 

This early backing from institutions not only provides credibility but also votes for strong investor confidence as the IPO opens up. Not only this, the IPO, valued at about ₹96 crore, will include both a fresh issue and an offer for sale. Roughly ₹84 crore will come through the fresh issue from 55.53 lakh shares. Priced in the band of ₹144–₹152 per share, the issue is already generating buzz, backed by positive movement in the grey market. The fundraising will primarily be used to expand operations, reduce debt, and sharpen JD Cables’ position in the fast-growing power and infrastructure segment. 

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Based in West Bengal, JD Cables has built a reputation as a wire supplier, cables, and conductors critical to power transmission and distribution. Its product range includes aluminium conductors, aerial bunched cables, and LT/HT power cables. The company serves state electricity boards, government projects and initiatives, & private players. Backed by utilities and infrastructure projects, JD Cables has maintained a consistent order book and reliable revenue flow.

The company has an edge in the market due to a wide product range, integrated manufacturing capabilities, and the ability to serve large as well as mid-sized enterprises across India. With support from the government emphasising electrification programs, renewable energy integration, & smart infrastructure projects, the demand for high-quality transmission and distribution products is only expected to rise, creating strong opportunities for JD Cables. 

Shareholding Structure

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Over the past few years, JD Cables has consistently posted revenue and profit growth while gradually reducing its dependence on debt. As per the red herring prospectus, about ₹45 crore of IPO proceeds will be allocated towards working capital, a crucial need in such a capital-heavy sector. Another ₹26 crore will go towards debt repayment, cutting down interest costs and bolstering the balance sheet. The remaining funds will support general corporate requirements, giving the company financial agility for future expansion.

Strategically deploying funds, JD Cables aims to improve liquidity, strengthen its debt–equity ratio, and build the foundation to handle larger-scale projects effectively.

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As per Fortune Business, the Indian wires and cables market was valued at ₹75,000 crore in 2024 and is expected to grow to around ₹135,000 crore by 2032, at a CAGR of 8% across 2025–32.

The strong growth rate in the last 5 years (FY19-FY24) has been largely aided by the government initiatives like 24x7 Power for All and Smart Cities, as well as private sector investments in energy, real estate, and telecom. Established relations with state utilities put JD Cables in a favourable position to secure orders for such large-scale initiatives. Rising urbanisation and faster electrification are also expected to lift demand for low- and medium-voltage cables. 

Investor Sentiment

The company has received a strong response in its anchor round, highlighting institutional interest. The entry of credible anchors like HDFC Bank and VentureX Fund I further boosts investor confidence, especially valuable in the SME IPO category, where liquidity and volatility concerns can be higher.

Risks to Consider

Despite its strengths, the company does have several risk factors too. The cables and conductors industry is marked by heavy competition and fluctuations due to metal prices like aluminium and copper, whose impact weighs on profit margins. Being an SME issue, the stock may also see lower trading volumes compared to mainboard IPOs, leading to liquidity challenges. However, the company has already said that use of IPO proceeds, particularly planned towards debt reduction and working capital, should ease some of these concerns and place it on firmer financial ground. 

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Launching its IPO at a time when India’s infrastructure and power sectors are expanding rapidly, JD Cables is well-placed to capture growth opportunities. x`The ₹27 crore anchor investment from marquee investors such as HDFC Bank and VentureX Fund I highlights the strong confidence in the company’s fundamentals and growth trajectory. Backed by defined financial priorities, a healthy order book, and robust sectoral demand, the public issue is well-positioned for a promising market debut.

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