Shares of Orient Technologies will be listed at the bourses today after blockbuster IPO. The company has fixed the IPO price at ₹206, at the upper end of the price band ₹195–206. The initial public offering of Orient Technologies witnessed a tremendous response from all category of investors, as the issue was subscribed 151.71 times.
The Mumbai-based IT solutions provider Orient Technologies’ initial public offering comprised a fresh issue of ₹120 crore and an offer-for-sale (OFS) of ₹94.76 crore.
Also read: IPO screener: Orient Tech issue closes today
The quota for retail investors was subscribed by a whopping 66.87 times, while that of HNIs by 300.60 times. QIBs too turned aggressive on the last day of the IPO and the portion reserved for them was subscribed 189.90 times.
Shivani Nyati, Head of Wealth, Swastika Investmart Ltd, said the shares are poised for a strong stock market debut. The stock commands a healthy grey market premium (GMP) of ₹87 (42 per cent), she said adding that “the company’s long track record, diverse clientele, and consistent financial growth underscore its strong market position.”
While Orient Technologies benefits from a strong market presence and a comprehensive IT solutions portfolio, it faces challenges such as reliance on key clients, technology partnerships, and government tenders. Intense competition within the IT industry could also impact the company’s growth trajectory, she cautioned Despite these potential risks, the IPO’s valuation at a P/E multiple of 17.45x appears reasonable. Given the company’s strong fundamentals, investor enthusiasm, and the positive outlook for the IT sector, Orient Technologies is well-positioned for a successful listing, she further said.
As part of the IPO exercise, Orient Technologies had garnered ₹64.43 crore from anchor investors ahead of the issue. The company allocated 31.27 lakh shares at ₹206 a share to anchor investors, including foreign and domestic institutions. Among them were Pine Oak Global, Saint Capital Fund, SB Opportunity Fund I, Elara Capital (Mauritius) Fund, and Rajasthan Global Securities
The proceeds from its fresh issuance to the extent of ₹10.35 crore will be used to acquire office premises at Navi Mumbai, ₹79.65 crore for funding its capital expenditure requirements and general corporate purposes.
Incorporated in 1997, Orient Technologies has built deep expertise to develop products and solutions for specialised disciplines across its business verticals, such as IT Infrastructure products and solutions, IT-enabled services (IteS), and Cloud and Data Management Services. The company’s business operations involve technologically advanced solutions, for which it has to collaborate with a range of technology partners, including Dell International Services India Pvt Limited (Dell), Fortinet, Inc. (Fortinet), and Nutanix Netherlands B.V. (Nutanix).
The company has established strong relationships with high profile customers such as Coal India, Mazagon Dock, D’Décor, Jyothy Labs, ACG, Integreon, Bluechip, Tradebulls, VJS Bank, VKS Bank, and the Joint Commissioner of Sales Tax (GST Mahavikas), Mumbai.
As of June 30, 2024, Orient Technologies’ order book stood at ₹101.20 crore.
Elara Capital (India) Pvt Ltd is the sole book-running lead manager, and Link Intime India Pvt Ltd is the registrar of the offer. The equity shares are proposed to be listed on the BSE and NSE.
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Published on August 28, 2024
https://www.thehindubusinessline.com/markets/orient-technologies-ipo-healthy-premium-seen-at-listing/article68575398.ece
