Exclusive: Orient Technologies IPO Details, GMP Analysis & Investment Outlook for 2024

Ayush

IPO
Orient Technologies ipo

The book-built IPO of Orient Technologies is valued at Rs 214.76 crores. The issue consists of an offer to sell 0.46 crore shares, valued at Rs 94.76 crores, and a fresh issue of 0.58 crore shares, totalling Rs 120.00 crores.

The Orient Technologies initial public offering (IPO) will go live on August 21, 2024, and end on August 23, 2024. On Monday, August 26, 2024, the allotment for the Orient Technologies IPO is anticipated to be completed. The tentative listing date for the Orient Technologies initial public offering (IPO) is Wednesday, August 28, 2024, on the BSE and NSE.

The pricing range for Orient Technologies’ IPO is ₹195 to ₹206 per share. Applications must have a minimum lot size of 72 shares. The bare minimum that retail investors must invest is ₹14,832. The minimum lot size investment for sNII is 14 lots (1,008 shares), amounting to ₹207,648, and for bNII, it is 68 lots (4,896 shares), amounting to ₹1,008,576.

Orient Technologies IPO Details

IPO DateAugust 21, 2024 to August 23, 2024
Listing Date[.]
Face Value₹10 per share
Price Band₹195 to ₹206 per share
Lot Size72 Shares
Total Issue Size10,425,243 shares(aggregating up to ₹214.76 Cr)
Fresh Issue5,825,243 shares(aggregating up to ₹120.00 Cr)
Offer for Sale4,600,000 shares of ₹10(aggregating up to ₹94.76 Cr)
Issue TypeBook Built Issue IPO
Listing AtBSE, NSE
Share holding pre issue35,816,500
Share holding post issue41,641,743

Orient Technologies IPO Reservation

Investor CategoryShares OfferedMaximum Allottees 
QIB Shares OfferedNot more than 50.00% of the Net offer
Retail Shares OfferedNot less than 35.00% of the Offer
NII (HNI) Shares OfferedNot less than 15.00% of the Offer

Orient Technologies IPO Timeline (Tentative Schedule)

Orient Technologies IPO opens on August 21, 2024, and closes on August 23, 2024.

IPO Open DateWednesday, August 21, 2024
IPO Close DateFriday, August 23, 2024
Basis of AllotmentMonday, August 26, 2024
Initiation of RefundsTuesday, August 27, 2024
Credit of Shares to DematTuesday, August 27, 2024
Listing DateWednesday, August 28, 2024
Cut-off time for UPI mandate confirmation5 PM on August 23, 2024
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Orient Technologies IPO Lot Size

Investors can bid for a minimum of 72 shares and in multiples thereof. The below table depicts the minimum and maximum investment by retail investors and HNI in terms of shares and amount.

ApplicationLotsSharesAmount
Retail (Min)172₹14,832
Retail (Max)13936₹192,816
S-HNI (Min)141,008₹207,648
S-HNI (Max)674,824₹993,744
B-HNI (Min)684,896₹1,008,576
Lot Size Calculator

Orient Technologies IPO Promoter Holding

Ajay Baliram Sawant, Jayesh Manharlal Shah, Umesh Navnitlal Shah and Ujwal Arvind Mhatre are the promoters of the company.

Share Holding Pre Issue97.96%
Share Holding Post Issue

About Orient Technologies Limited

Orient Technologies Limited, a rapidly expanding provider of information technology (IT) solutions with its headquarters located in Mumbai, Maharashtra, was incorporated in July 1997. The organisation has amassed a wealth of information to produce goods and services tailored to particular industries within its vertical business markets.

Below is a summary of these areas:

IT Infrastructure: End-user computing and data centre solutions are among the goods and services offered;

Managed services, multi-vendor support services, IT facility management services, network operations centre services, security services, and renewals are among the services provided by IT Enabled Services (IteS).

Services related to cloud computing and data management include workload migration from data centres to the cloud.

Company Financials

Orient Technologies Limited Financial Information (Restated)

The profit after tax (PAT) of Orient Technologies Limited climbed by 8% and its sales by 12% during the fiscal year that ended on March 31, 2024, and March 31, 2023.

Period Ended31 Mar 202431 Mar 202331 Mar 202231 Mar 2021
Assets311.14215.25176.32112.45
Revenue606.86542.01469.12248.96
Profit After Tax41.4538.333.490.13
Net Worth175.31128.8294.1161.29
Reserves and Surplus138.79111.3276.6144.79
Total Borrowing4.8212.862.289.22

Key Performance Indicator

The market capitalization of Orient Technologies IPO is Rs 857.82 Cr.

KPI as of March 31, 2024.

KPIValues
ROE27.26
ROCE28.42
RoNW23.64
P/BV4.21
PAT Margin (%)6.87

Objects of the Issue (Orient Technologies IPO Objectives)

The following goals are how the company plans to use the net proceeds:

Acquiring office space at Plutonium Business Park, Trans-Thana Creek Industrial Area, Turbhe MIDC, District Thane, Navi Mumbai (collectively, Navi Mumbai Property); Financing the necessary capital expenditures for: 

i. Purchasing equipment to establish a Network Operating Centre (NOC) and Security Operation Centre (SOC) at the Navi Mumbai Property;

 ii. Purchasing equipment and devices to provide Devise-as-a-Service (DaaS) offering. (collectively, Capital Expenditure).

general objectives of the company.

Orient Technologies IPO Review (May apply)

[Dipip Davda] The business provides IT solutions and related services in a highly competitive and fragmented market. For the reporting periods, it showed consistent development in both its top and bottom lines. Orders totalling more than Rs. 101 crore were pending as of June 30, 2024. The issue looks fully priced, discounting all near-term positives, based on FY24 earnings. Sensible investors may park modest sums of money for a medium- to long-term period. 

Orient Technologies’ current IPO GMP

According to market watchers, the Orient Technologies IPO’s GMP (grey market premium) is currently ₹52, or roughly 26% more than the IPO’s upper price range. If investors receive shares through the allotment process, the grey market indicates they can anticipate a return on their investment of about 26%. They claimed that the general market atmosphere is favourable and encouraging for the main market. There may be additional positive emotion in the grey market surrounding the Orient Technologies IPO once it starts on Wednesday.

However, because GMP is completely unregulated, stock market analysts stated that it is not the best gauge of the strength of an initial offer. They said there is nothing to do with a company’s financials. They advised investors to scan the company’s balance sheet and only make any decision regarding Orient Technologies IPO.

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