Unlisted shares of Orient Technologies Ltd are trading Rs 70 higher in the grey market, signalling a 33.98 per cent listing gain from the public issue.
Orient Technologies IPO: The initial public offering (IPO) of information technology solutions provider Orient Technologies Ltd, which is going to be closed on Friday, has received a decent response from investors. The price band of the IPO has been fixed at Rs 195-206 per share. Till 10:37 am on the final day of bidding on Friday, the 215-crore IPO has received a 24.56 times subscription, garnering bids for 17,92,46,520 shares as against 72,97,670 shares on offer.
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According to the latest data, the retail quota received a 31.82 times subscription, while the non-institutional investors category also got a 40.13 times subscription. The QIB category received a 0.18 times subscription.
The Orient Technologies IPO was opened for public subscription on Wednesday, August 21. Its price band has been fixed at Rs 195-Rs 206 apiece. The share allotment will likely be finalised on August 26, while its listing will take place on the NSE and BSE on August 28.
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Orient Technologies IPO GMP Today
According to market observers, unlisted shares of Orient Technologies Ltd are trading Rs 70 higher in the grey market than its issue price. The Rs 70 grey market premium or GMP means the grey market is expecting a 33.98 per cent listing gain from the public issue.
The GMP is based on market sentiments and keeps changing. ‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.
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Orient Technologies IPO: Analysts’ Recommendations
Brokerage firm Master Capital Service Ltd in its IPO note said, “Orient Technologies Limited expertise in developing IT products and solutions. The company offers wide range and diversified bouquet of products and services ranging from Data Centre Solutions to Cloud and Data Management Services. The company have recently ventured into ‘Device as a service (DaaS)’. Under DaaS the company will provide desktops, laptops, tablets, printers, scanners, smartphones, and servers, bundled with software, along with managed services on a ‘pay-per-use’ model i.e. on a subscription basis.”
The company plans to expand geographic footprint and cater to a broader customer base globally. The company has already set up a branch in Singapore which is primarily engaged in the business of trading of computer equipment such as servers, storage and network devices. “Investors looking to invest can invest in the IPO for medium to long term,” it added.
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Another brokerage firm Anand Rathi in its IPO note said, “Orient Technologies is engaged in IT solutions and related services providing across the business verticals. OTL’s business operations involves technologically advanced solutions for which the company collaborates with a wide range of technology partners including Dell International Services India Private Limited (Dell) and Fortinet, Inc. (Fortinet) and Nutanix Netherlands B.V. (Nutanix).”
At the upper price band, the company is valuing at P/E of 20.7x with a market cap of Rs 8,580 million post issue of equity shares and a return on net worth of 27.2 per cent. On the valuation front, we believe that the company is fairly priced. “Thus, we recommend a ‘subscribe’ rating to the IPO,” Anand Rathi stated.
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Orient Technologies IPO: More Details
The initial public offering (IPO) is a combination of a fresh issue of Rs 120 crore and an offer for sale of up to 46 lakh equity shares valued at Rs 95 crore, at the upper end of the price band, by promoters. This aggregates the transaction size to Rs 215 crore.
Orient Technologies Ltd has fixed a price band of Rs 195-206 a share for its Rs 215-crore initial public offering.
Those offloading shares in the OFS are Ajay Baliram Sawant, Umesh Navnitlal Shah, Ujwal Arvind Mhatre, and Jayesh Manharlal Shah.
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Proceeds from the fresh issue to the tune of Rs 79.65 crore will be used for funding capital expenditure requirements, Rs 10.35 crore for the acquisition of office premises at Navi Mumbai, and a portion will also be used for general corporate purposes.
Investors can bid for a minimum of 72 equity shares and in multiples thereof.
Over the years, the company has developed deep expertise in creating products and solutions for specialised disciplines across IT Infrastructure, IT Enabled Services (IteS), and Cloud and Data Management Services.
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Orient Technologies has a diverse clientele spanning both public and private sectors, including industries like Banking, Financial Services, Insurance (BFSI), Information Technology (IT) & ITeS, healthcare, and pharmaceuticals.
It has clients such as Coal India, Mazagon Dock, D’Dcor, Jyothy Labs, ACG, Integreon, Bluechip, Tradebulls. The company primarily operates in India and has sales and services offices in cities across the country, including Navi Mumbai, Pune, Ahmedabad, New Delhi, Bengaluru, and Chennai.
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Additionally, it has a branch office in Singapore.
As of June 30, 2024, Orient Technologies’ order book stood at Rs 101.20 crore.
Orient Technologies’ revenue from operations during the fiscal year 2024 increased to Rs 602.89 crore from Rs 535.10 crore in the previous year and profit after tax rose to Rs 41.45 crore in fiscal 2024 from Rs 38.30 crore in fiscal 2023.
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Elara Capital (India) Pvt Ltd is the sole book-running lead manager for the IPO. The equity shares are proposed to be listed on the BSE and NSE.
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