August 21, 2024
New Delhi, India
Orient Technologies IPO Day 1
The initial public offering (IPO) of Orient Technologies got off to an impressive start on Wednesday, August 21. The IPO saw overwhelming interest, particularly from retail investors, leading to full subscription in less than an hour.
Subscription Status: As of 10:57 AM IST, Orient Technologies IPO was subscribed 1.30 times overall, according to data from the Bombay Stock Exchange (BSE). The retail portion was particularly sought after, being oversubscribed by 2.22 times within the first hour. Meanwhile, the non-institutional investors (NII) portion saw 83% subscription, while the quota for qualified institutional buyers (QIBs) is yet to be fully booked.
IPO Details: Orient Technologies is offering its shares in a fixed price band of ₹195 to ₹206 per equity share, with a face value of ₹10 each. Investors can apply for a minimum of 72 shares and multiples thereof. The IPO, which began on August 21, will close on Friday, August 23.
Ahead of the IPO, Orient Technologies raised ₹64.43 crore from five anchor investors by allocating 31,27,572 shares at ₹206 apiece. The anchor investors include Pine Oak Global Fund, Saint Capital Fund, SB Opportunities Fund, Elara Capital (Mauritius), and Rajasthan Global Services.
Company Background: Incorporated in 1997, Mumbai-based Orient Technologies is a fast-growing IT solutions provider with a strong presence in IT infrastructure, IT-enabled services (IteS), and cloud and data management services. The company serves prominent clients across various sectors, including banking, financial services, insurance (BFSI), IT, ITeS, and healthcare/pharmaceutical.
Financial Performance: For the financial year ending March 31, 2024, Orient Technologies reported a net profit of ₹41.45 crore, with a revenue of ₹606.86 crore. This is an increase from the previous fiscal year (2022-23), where the company recorded a net profit of ₹38.3 crore on a revenue of ₹542.01 crore.
IPO Utilization: The ₹214.76 crore IPO includes a fresh issue of ₹120 crore and an offer-for-sale (OFS) of up to 46 lakh equity shares by the promoters, amounting to ₹94.76 crore. The net proceeds from the IPO will be used for several purposes, including:
- Acquisition of office premises in Navi Mumbai
- Funding capital expenditure for setting up a network operating centre (NOC) and security operation centre (SOC)
- Purchase of equipment and devices for device-as-a-service (DaaS) offerings
- General corporate purposes
Investors have until Friday, August 23, to place their bids for this IT solutions provider.
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