The Orient Technologies IPO is generating considerable buzz among investors, given its combination of fresh issues and offers for sale that aggregate to a substantial ₹214.76 crores. Set to be listed on the BSE and NSE on August 28, 2024, this IPO provides an exciting investment opportunity in the rapidly expanding IT sector. Below, we delve into the specifics of this IPO, the company’s business model, financials, and reasons why it has garnered significant investor interest.
Overview of Orient Technologies IPO
- IPO Size: ₹214.76 crores
- Fresh Issue: ₹120 crores
- Offer for Sale: ₹94.76 crores
- IPO Price Band: ₹195 to ₹206 per share
- Minimum Lot Size: 72 shares
- Listing Date: August 28, 2024
- Exchange: BSE, NSE
The Orient Technologies IPO began its bidding process on August 21, 2024, and concluded on August 23, 2024. The allotment was finalized on August 26, 2024, with shares credited to successful applicants’ demat accounts on August 27, 2024. Elara Capital (India) Private Limited is the book-running lead manager, and Link Intime India Private Ltd serves as the IPO’s registrar.
About Orient Technologies IPO Limited
Founded in July 1997 and headquartered in Mumbai, Orient Technologies IPO Limited has established itself as a robust player in the IT solutions space. The company offers a wide range of IT infrastructure products and services, focusing on data center solutions, end-user computing, managed services, IT facility management, and cloud and data management services. Over the years, it has built an impressive clientele that includes major entities across banking, financial services, insurance (BFSI), IT, and healthcare industries.
Financial Performance Orient Technologies IPO
Orient Technologies IPO has demonstrated steady financial growth, which is a significant driver of investor interest. Here are some key financial figures:
- Assets (as of March 31, 2024): ₹311.14 crores
- Revenue (FY24): ₹606.86 crores
- Profit After Tax (FY24): ₹41.45 crores
- Net Worth (FY24): ₹175.31 crores
- Total Borrowing: ₹4.82 crores
Notably, the company has shown a 12% increase in revenue and an 8% rise in profit after tax from FY23 to FY24, highlighting its strong growth trajectory. The company’s Return on Equity (ROE) stands at 27.26%, while its Return on Capital Employed (ROCE) is 28.42%, indicating efficient use of capital to generate returns.
Objectives of the Orient Technologies IPO
The primary objectives for raising funds through the Orient Technologies IPO include:
- Acquisition of Office Premises: A portion of the proceeds will be used to purchase office premises in Navi Mumbai. This acquisition aligns with the company’s plans for expansion and better serves its growing client base.
- Capital Expenditure: Funds will be allocated for setting up a Network Operating Centre (NOC) and Security Operation Centre (SOC) at the newly acquired premises. Additionally, investments will be made to enhance the company’s Device-as-a-Service (DaaS) offerings, catering to the growing demand for cloud-based solutions.
- General Corporate Purposes: The remaining funds will be utilized for general corporate purposes, which will support the company’s ongoing operational requirements and business growth initiatives.
Orient Technologies IPO Subscription Details
The Orient Technologies IPO has seen robust subscription numbers, underscoring strong investor confidence. As of August 23, 2024, the IPO was subscribed 154.84 times. Here’s a breakdown of the subscription:
- Qualified Institutional Buyers (QIB): 188.79 times
- Non-Institutional Investors (NII): 310.03 times
- bNII (bids above ₹10L): 343.45 times
- sNII (bids below ₹10L): 243.20 times
- Retail Investors: 68.93 times
These figures highlight the overwhelming response from institutional and high-net-worth investors, further validating the company’s strong market position and growth potential.
Promoter Holding and Shareholding Pattern
The promoters of Orient Technologies include Ajay Baliram Sawant, Jayesh Manharlal Shah, Umesh Navnitlal Shah, and Ujwal Arvind Mhatre. Pre-IPO, the promoter shareholding stood at 97.96%, which will reduce to 73.21% post-IPO. This strategic dilution of shares allows the company to bring in more retail and institutional investors, thereby diversifying its investor base.
Certifications and Accreditations
Orient Technologies holds several key certifications that bolster its credibility in the IT solutions domain. These include:
- ISO 27001:2013 for Information Security Management
- ISO 20000-1:2018 for Information Technology Services Management
- ISO 9001:2015 for Quality Management
- CMMI Maturity Level 3 Certificate
These certifications attest to the company’s commitment to quality, security, and service management, making it a trusted partner for major corporations and government entities.
Market Outlook and Competitive Position
Orient Technologies operates in a highly competitive and fragmented IT solutions market. However, its comprehensive service offerings, strategic investments in new technologies, and a strong client base position it well to capture a larger market share. The IT industry’s shift towards cloud computing, data security, and managed services aligns with Orient Technologies’ service offerings, providing ample growth opportunities.
Conclusion
The Orient Technologies IPO presents a compelling investment opportunity for those looking to capitalize on the growth of the IT services sector in India. With its diverse service portfolio, robust financials, and strategic expansion plans, Orient Technologies is poised to benefit from the increasing demand for IT infrastructure and managed services. As the IPO is fully subscribed and set to be listed on August 28, 2024, investors who secured allotments can look forward to potentially rewarding returns in the medium to long term.
Keep an eye on the market debut of Orient Technologies Limited and consider this IPO for a diversified investment portfolio.