Orient Technologies has submitted a Draft Red Herring Prospectus (DRHP) to the Securities and Exchange Board of India (Sebi) to raise funds through an initial public offering (IPO).
According to the details outlined in the draft prospectus, the IPO comprises a fresh issue valued at Rs 120 crore and an offer for sale of up to 46 lakh equity shares by the Promoter Selling Shareholders. The face value of each share stands at Rs 10.
The offer for sale includes the sale of equity shares by each promoter, namely Ajay Baliram Sawant, Umesh Navnitlal Shah, Ujwal Arvind Mhatre, and Jayesh Manharlal Shah.
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Key details of Orient IPO submission
The IPO follows a book-building process, where not more than 50 per cent of the offer will be allocated to qualified institutional buyers, at least 15 per cent to non-institutional investors, and a minimum of 35 per cent to retail individual investors.
Elara Capital (India) Private Limited has been appointed as the sole book-running lead manager for the IPO, while Link Intime India Private Limited will serve as the registrar of the offer.
The equity shares are proposed to be listed on both the BSE and NSE.
Proceeds from the fresh issue will be utilised for various purposes, including funding capital expenditure requirements, acquiring office premises at Navi Mumbai, and meeting general corporate purposes, as stated in the prospectus.
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Company overview
Orient Technologies was established in 1997Â and is a growing information technology (IT) solutions provider, offering products and services across IT Infrastructure, IT-enabled services (IteS), and Cloud and Data Management Services.
The company collaborates with leading technology firms such as Dell, Fortinet, and Nutanix to provide tailored solutions to its diverse clientele.
As of December 31, 2023, Orient Technologies boasts a diverse clientele spanning various sectors, including Banking, Financial Services, Insurance (BFSI), IT, IteS, and Healthcare/Pharmaceuticals. Notable clients include Coal India, Mazagon Dock, D’Décor, and Jyothy Labs, among others. The company’s order book stood at Rs 92.75 crore as of December 31, 2023.
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Operating primarily in India, Orient Technologies has sales and services offices in several cities across the country and a branch office in Singapore.
The company’s revenue from operations increased to Rs 535.10 crore in fiscal 2022â23 from Rs 467.44 crore in fiscal 2021â22. Profit after tax also saw a rise of 14.35 per cent during the same period, reaching Rs 38.30 crore.
