Orient Technologies IPO
Orient Technologies Limited is launching its initial public offering (IPO) from August 21-23, 2024. The company is a fast-growing IT solutions provider offering services in IT infrastructure, IT enabled services, and cloud/data management. The IPO aims to raise Rs 214.76 crores through a combination of fresh issue and offer for sale of shares.
RI
by RA ALOK DAIYA SEBI Reg. INH000011468
IPO Overview and Timeline
1
IPO Opens
August 21, 2024 - The Orient Technologies IPO opens for subscription
2
IPO Closes
August 23, 2024 - Last day to apply for the IPO
3
Basis of Allotment
August 26, 2024 - Finalization of basis of allotment
4
Refund Initiation
August 27, 2024 - Initiation of refunds for unsuccessful applicants
5
Credit of Shares
August 27, 2024 - Credit of shares to successful applicants' demat accounts
6
Listing Date
August 28, 2024 - Tentative listing date on BSE and NSE
IPO Details and Lot Size
Issue Size
Rs 214.76 crores total, comprising fresh issue of Rs 120 crores and offer for sale of Rs 94.76 crores
Price Band
Rs 195 to Rs 206 per equity share
Lot Size
Minimum lot size of 72 shares. Retail investors can apply for up to 13 lots (936 shares)
Listing
Proposed listing on BSE and NSE
The minimum investment required for retail investors is Rs 14,832. Small HNIs can invest between Rs 207,648 to Rs 993,744, while large HNIs need to invest a minimum of Rs 1,008,576.
About Orient Technologies Limited
Orient Technologies Limited, incorporated in July 1997, is a fast-growing IT solutions provider headquartered in Mumbai, Maharashtra. The company specializes in three main areas:
- IT Infrastructure: Data Centre Solutions and End-User Computing
- IT Enabled Services (ITeS): Managed Services, Multi-Vendor Support, IT Facility Management, Network Operations Centre, Security Services, and Renewals
- Cloud and Data Management Services: Migration of workload from data centres to cloud
The company serves prominent clients across various industries, including banking, financial services, insurance (BFSI), IT, ITeS, and healthcare/pharmaceutical sectors. Some of their notable clients include Bluechip Corporate Investment Centre, Tradebulls Securities, Vasai Janata Sahakari Bank, Coal India Limited, and Mazagon Dock Shipbuilders Limited.
Company Financials and Performance
Orient Technologies Limited's revenue increased by 12% and profit after tax (PAT) rose by 8% between the financial year ending with March 31, 2024 and March 31, 2023. The company's market capitalization is Rs 857.82 Cr. Key performance indicators as of March 31, 2024 include ROE of 27.26, ROCE of 28.42, and PAT Margin of 6.87%.
IPO Objectives and Lead Manager
The company proposes to utilize the Net Proceeds towards the following objects:
- Acquisition of office premise at Navi Mumbai
- Funding capital expenditure requirements for:
- Purchase of equipment for setting up Network Operating Centre (NOC) and Security Operation Centre (SOC)
- Purchase of equipment and devices to offer Device-as-a-Service (DaaS) offering
- General corporate purposes
The lead manager for the Orient Technologies IPO is Elara Capital (India) Private Limited.
IPO Application Process
1
Choose a Broker
Select a broker like Zerodha, Upstox, or ICICI Direct to apply for the IPO
2
Login and Navigate
Log in to your trading account and navigate to the IPO section
3
Fill Application
Enter your UPI ID, desired quantity of shares, and bid price
4
Submit and Approve
Submit the IPO application form and approve the UPI mandate in your UPI app
Investors can apply online using UPI as a payment gateway. The cut-off time for UPI mandate confirmation is 5 PM on August 23, 2024.
IPO Subscription and Reviews
As of August 21, 2024 11:29:11 AM (Day 1), the Orient Technologies IPO is subscribed 2.03 times overall. The retail category is subscribed 3.53 times, while the NII category is subscribed 1.22 times.
The company is operating in a highly competitive and fragmented segment of IT solutions and related services providing. It marked steady growth in its top and bottom lines for the reported periods. As of June 30, 2024, it has orders on hand worth Rs. 101+ cr. Based on FY24 earnings, the issue appears fully priced discounting all near term positives.
Well-informed investors may park moderate fund for medium to long term.