Mumbai-based IT solutions provider Orient Technologies has decided to open its initial public offering for subscription on August 21. The price band for the offer will be announced on August 16.
The issue will close on August 23, while the anchor book of the offer will be opened for a day on August 20.
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The maiden public issue is a combination of equity shares worth Rs 120 crore, and an offer-for-sale of 46 lakh equity shares by promoters.
Promoters Ajay Baliram Sawant, Umesh Navnitlal Shah, Ujwal Arvind Mhatre, and Jayesh Manharlal Shah will be selling 11.55 lakh equity shares each in the offer-for-sale.
Half of the issue will be reserved for qualified institutional buyers, while the non-institutional investors will get up to 15 percent shares and the remaining 35 percent shares will be reserved for retail investors.
Orient, which provides IT infrastructure, IT-enabled services, and cloud and data management services, will spend Rs 10.35 crore equity shares out of the net fresh issue proceeds for acquisition of office premise at Navi Mumbai. Another Rs 79.65 crore will be spent on capital expenditure requirements, and the remaining fresh issue money will be used for general corporate purposes.
The company that competes with Dynacons Systems & Solutions, HCL Technologies, LTIMindtree, Wipro, Allied Digital Services, Dev Information Technology, and Tech Mahindra is 97.72 percent owned by the above-mentioned promoters; 2.04 percent of its stake is held by public shareholders.
Orient had an orderbook of Rs 101.2 crore as of June 2024, including Rs 20.5 crore from the BFSI segment and Rs 30.6 crore from the government & PSUs.
The IT services company has recorded decent financial performance in the past years, with profit growing 8.2 percent on-year to Rs 41.4 crore in the fiscal year ended March 2024 and revenue increasing 12.7 percent to Rs 602.9 crore during the same period.
EBITDA (earnings before interest, tax, depreciation and amortisation) for the fiscal 2024 grew by 16.4 percent to Rs 56.6 crore with margin expanding 31 bps to 9.4 percent compared to the previous year.
The IT infrastructure products and services business contributed 52.2 percent to the revenue in the fiscal 2024, 22.2 percent business came from IT-enabled services, and the remaining 25.6 percent from cloud and data management services.
Elara Capital India is the sole book running lead manager to the issue.
