Veteran Cable Manufacturer Secures Major Growth Capital
In a significant move within India's industrial sector, Prem Cables Pvt. Ltd. (PCPL) has successfully raised ₹66 crore in a late-stage Pre-IPO funding round. The investment was spearheaded by Caprize Investment Managers, marking a strong vote of confidence in the company's growth trajectory and its alignment with national infrastructure goals.
Investor Consortium and Strategic Expansion Plans
The funding round witnessed participation from a diverse group of investors, creating a powerful consortium. Alongside Caprize Ventures, participants included the Elegant Marbles Family Office, GeeCee Ventures, Morde Foods Family Office, Ativir Financial Services, and the India Emerging Infrastructure Fund.
This substantial capital infusion will fuel Prem Cables' ongoing capacity expansion project worth approximately ₹175 crore. The company is strategically focusing on manufacturing higher-margin products to enhance profitability. This expansion specifically targets the production of HT and solar cables, AL59 and HTLS conductors, MVCC, and copper cables.
Positioning for India's Infrastructure and Renewable Energy Boom
With a legacy spanning over 60 years, Prem Cables is a established manufacturer of aluminium and copper power cables, conductors, and wire rods. The company is exceptionally well-positioned to capitalize on India's massive capital expenditure in transmission infrastructure and renewable energy.
Bolstering its technical capabilities are international technology collaborations with partners in France, Korea, and Egypt. Furthermore, the company's robust financial health is evidenced by an active order book of ₹650 crore. Under the leadership of Abhay P. Shah (CMD), Aniket A. Shah, and Ayush A. Shah, and a team with experience from major industrial groups like Sterlite Technologies, Jindal, and Essar, Prem Cables has demonstrated steady growth in revenue and profitability, alongside improving Return on Equity (ROE) and Return on Capital Employed (ROCE) metrics.
The lead investor, Caprize Investment Managers, is known for providing late-stage growth capital to high-potential companies. Their investment focus areas, which include Power, Renewable Energy, Battery Energy Storage Systems (BESS), and Cloud Computing, align perfectly with Prem Cables' core business and future vision, signaling a partnership aimed at long-term value creation.
