Orient Technologies Ipo is gearing up for its initial public offering (IPO), with a price band set between ₹195 and ₹206 per equity share, each with a face value of ₹10. The IPO will be open for subscription from Wednesday, August 21, to Friday, August 23, 2024. Anchor investors will have the opportunity to bid on Tuesday, August 20.
The pricing reflects a floor price and cap price that are 19.50 times and 20.60 times the face value, respectively. Investors can place bids in multiples of 72 shares, with the minimum bid set at 72 shares.
According to an advertisement in Business Standard, the price-to-earnings (P/E) ratio based on the diluted earnings per share (EPS) for 2024, at the upper end of the price band, is 17.46 times. This compares favorably to the industry peer group’s average P/E ratio of 29.87 times. The IPO has allocated 50% of its shares for Qualified Institutional Buyers (QIBs), 15% for Non-Institutional Investors (NIIs), and 35% for retail investors.
The share allocation is expected to be finalized by Monday, August 26, 2024. Refunds will be processed starting Tuesday, August 27, with shares credited to allottees’ demat accounts the same day. Orient Technologies is likely to list its shares on the BSE and NSE on Monday, January 29, 2024.
Founded in 1997 and headquartered in Mumbai, Maharashtra, Orient Technologies is a leading supplier of information technology (IT) solutions. The company specializes in IT Infrastructure, IT Enabled Services (ITeS), and Cloud and Data Management Services. Over the years, it has built significant expertise in these areas, developing products and solutions in partnership with major technology companies like Dell, Fortinet, and Nutanix.
Orient Technologies’ publicly traded peers include companies like Dynacons Systems & Solutions Ltd (P/E of 29.47), HCL Technologies Ltd (P/E of 26.93), Wipro Ltd (P/E of 23.39), and Tech Mahindra Ltd (P/E of 55.17), among others.
For the fiscal year ending March 31, 2024, Orient Technologies reported an 8% increase in profit after tax (PAT) and a 12% growth in sales compared to the previous year.
The IPO aims to raise ₹214.76 crore, which includes a fresh issue of ₹120 crore and an offer-for-sale (OFS) of 46 lakh equity shares by the promoters. Prominent shareholders, including Ajay Baliram Sawant, Umesh Navnitlal Shah, Ujwal Arvind Mhatre, and Jayesh Manharlal Shah, will be offloading their shares in the OFS.
The company plans to use the net proceeds for general corporate purposes, including capital expenditure and the purchase of an office building in Navi Mumbai. Elara Capital (India) Private Limited is the book running lead manager for the IPO, with Link Intime India Private Ltd acting as the registrar.
Orient Technologies Ipo (FAQs)
What is the price band for the Orient Technologies IPO?
The price band for the Orient Technologies IPO is set between ₹195 and ₹206 per equity share.
When will the Orient Technologies IPO open and close for subscription?
The IPO will open for public subscription on Wednesday, August 21, and will close on Friday, August 23, 2024.
What is the minimum bid size for the Orient Technologies IPO?
The minimum bid size is 72 shares, which corresponds to a minimum investment amount.
When will the shares of Orient Technologies be listed on the BSE and NSE?
The shares are expected to be listed on the BSE and NSE on Monday, January 29, 2024.
What are the key uses of the proceeds from the Orient Technologies IPO?
The proceeds will be used for general corporate purposes, including capital expenditure and purchasing an office building in Navi Mumbai.
Who is the book running lead manager for the Orient Technologies IPO?
Elara Capital (India) Private Limited is the book running lead manager for the IPO.
What is the current grey market premium (GMP) for Orient Technologies shares?
The grey market premium (GMP) is ₹70 per share, indicating a premium of 87.5% over the issue price.
What is the share allocation for different investor categories in the IPO?
The IPO allocates 50% of shares to Qualified Institutional Buyers (QIBs), 15% to Non-Institutional Investors (NIIs), and 35% to retail investors.
How is Orient Technologies priced compared to its industry peers?
At the upper end of the price band, Orient Technologies has a P/E ratio of 17.46 times, compared to the industry average of 29.87 times.
What are the financial highlights of Orient Technologies for the fiscal year ending March 31, 2024?
The company reported an 8% increase in profit after tax (PAT) and a 12% growth in sales compared to the previous fiscal year.