Oswal Cables Limited IPO

01At a glance

What the company does: makes conductors and cables up to 765 kV for transmission and distribution, renewable energy, railways and industry, with cables of up to four cores and sizes from 1.5 to 1,000 sq mm (DRHP p.30). It has two plants, at Jaipur and Medak, and a windmill (DRHP p.43).

Who pays it: power utilities and infrastructure buyers, mostly on purchase orders; only a few customers have long-term agreements (DRHP p.42). It exported to 14 countries in FY25 (DRHP p.134).

Why it is raising money: ₹1,861.57 million for a new project, ₹400.00 million to repay borrowings, and the rest for general purposes (DRHP p.31).

How fast it has grown: revenue from ₹3,374 million in FY23 to ₹4,930 million in FY24 and ₹6,355 million in FY25 (DRHP p.32).

The one thing to understand: fast growth on thin margins from one site. The Jaipur unit produced 83.39% of FY25 revenue, EBITDA margin was 9.23%, and borrowings exceeded net worth (DRHP p.43, DRHP p.133).

02The business, in plain words

A conductor and cable maker makes conductors and cables to customer specifications, wins orders from utilities and contractors, and supplies them against purchase orders, often backed by bank guarantees.

A state transmission utility tenders for conductors for a new line → Oswal quotes and wins the order → it makes the conductors in Jaipur to the utility's specification → it delivers to site and is paid against the order.

Contracts can carry liquidated damages and invocation of bank guarantees for late delivery (DRHP p.42).

Earnings equation: Profit ≈ tonnes supplied × (price − metal and conversion cost) − interest. EBITDA margin was 9.23% in FY25 (DRHP p.133).

03Where the money comes from

Source: DRHP p.43.

04The growth record

Source: DRHP p.32, DRHP p.133, DRHP p.368.

05What the growth is made of

Volume at both plants. Revenue grew 37.24% a year from FY23 to FY25, and Medak's revenue doubled in FY25 (DRHP p.43, DRHP p.133). EBITDA grew faster than revenue as margin rose by about 1.5 percentage points (DRHP p.133). The F&S report the company cites says its EBITDA and profit growth over those years was the fastest among its listed peers (DRHP p.30).

06Earnings quality

Operating cash flow improved from negative ₹3.88 million in FY23 to ₹501.37 million in FY25 (DRHP p.368). The statutory auditors included emphasis-of-matter paragraphs in FY23, FY24 and FY25: in FY24 the company wrote off ₹46.03 million (USD 559,915) of export receivables outstanding since 2017-18, and ₹7.01 million of old advances; it is seeking RBI approval to remove the unrealised export bills from the banks' monitoring system; and some balances await confirmation from counterparties (DRHP p.46).

07The balance sheet

Source: DRHP p.32, DRHP p.33, DRHP p.133.

08What the money is for

Source: DRHP p.31.

The fresh issue is up to ₹3,000.00 million and the offer for sale up to 22,200,000 shares (DRHP p.3).

09Who is selling

Source: DRHP p.31. Manak Chand Talera and Surendra Talera each offer 55% of their holdings (our arithmetic).

10Promoters

The promoters are Puneet Talera and Gaurav Talera, who hold 33.87% each (DRHP p.30, DRHP p.31). Each was paid a salary of ₹5.75 million in FY23, ₹10.50 million in FY24 and ₹12.00 million in FY25, so ₹11.50 million and ₹24.00 million for the two together in FY23 and FY25, our arithmetic (DRHP p.34).

11Who already owns it

Source: DRHP p.31, DRHP p.32. The company has eight shareholders, all promoters or promoter group (DRHP p.32).

12What changed just before the IPO

• Share structure: a share split and bonus issue, reflected in the current 189,000,000 shares (DRHP p.32).
• Medak: revenue doubled in FY25 (DRHP p.43).
• Cash flow: operating cash flow reached ₹501 million in FY25 (DRHP p.368).
• Bonus and split: on September 19, 2025 the company issued 4.25 bonus shares for every share held, 76,500,000 shares in all, and each share of ₹10 was then split into two shares of ₹5 (DRHP p.37, DRHP p.92).
• No pre-IPO placement: the document states the company is not contemplating one (DRHP p.37).
• New auditor: Vikas Jain & Associates was appointed statutory auditor on September 30, 2024, when the tenure of Kalani & Company ended (DRHP p.84).
• Public company: the company converted from a private to a public limited company, with a fresh certificate of incorporation dated July 3, 2025 (DRHP p.3).

13Capacity and expansion

Two manufacturing units, with Jaipur the main one (DRHP p.43). The proceeds fund ₹1,861.57 million of capital expenditure for a new project (DRHP p.31).

14Market size and industry structure

The F&S report cited in the offer document values India's transmission and distribution conductor market at ₹159.38 billion in FY2025 and projects ₹211.16 billion by FY2030, and the wires and cables market at about ₹800 billion rising to about ₹1,500 billion (DRHP p.30). Those projections are F&S's, and newboard has not tested them. The report places the company among the top ten cable and conductor companies in India by turnover (DRHP p.30).

15Competitive position

What the document claims, and what it rests on:

• A range up to 765 kV across conductors and cables (DRHP p.30).
• Return on equity of 27.42% in FY25, the highest among listed peers per F&S (DRHP p.30).

Against that: dependence on the Jaipur unit, few long-term customer agreements, penalty clauses in contracts, and borrowings above net worth (DRHP p.42, DRHP p.43).

16Peers the company named

The document gives the listed peers' P/E range as 14.58 (Dynamic Cables) to 53.53 (KEI Industries), average 34.05 (DRHP p.131). The full peer table was not read for this study.

No P/E is possible for the company until a price band is set.

17Risks, in plain words

• Customers. Mostly purchase orders; few long-term agreements (DRHP p.42).
• One plant. Jaipur produces 83% of revenue (DRHP p.43).
• Penalties. Liquidated damages and bank-guarantee invocation for delays (DRHP p.42).
• Audit remarks. Emphasis of matter in three successive years (DRHP p.46).

18Litigation and regulatory matters

Source: DRHP p.33.

19Related-party transactions

Not read in detail for this study.

20What the offer document does not say

In the sections read for this study, the document does not give:

• What the new project will make, and where, in the pages read.
• Who the export customer was whose ₹46 million dues from 2017-18 were written off.
• Who the largest customers are, and their share of revenue, in the pages read.
• Any results after March 2025, as the filing contains no interim period.
• The price band, lot size or issue dates, which is normal at DRHP stage.

21Five questions for management

1. What will the ₹1,862 million project produce, and where will it be built?
2. Who owed the export receivable written off in FY24, and is recovery still being pursued?
3. What share of revenue comes from the largest utility customers?
4. How have results moved since March 2025?
5. Why are four promoter-group members, rather than the two promoters, the sellers in the offer?

1Sources and cited facts

This study was read from 1 document the company filed. The 50 figures it cites are listed under the document each came from, with the page and the sentence as printed.