Orient Technologies IPO Set to Open on August 21: Price Band Locked at ₹195-206 Per Share – Here’s What You Need to Know

Orient Technologies Limited is launching its Initial Public Offering (IPO) on August 21, 2024. The company has set the price range for its shares between ₹195 and ₹206 per share, with each share having a face value of ₹10. Investors can start subscribing to the IPO on August 21, and the offer will close on August 23. Anchor investors will be allotted shares a day earlier, on August 20.

Key Details of the IPO

• The price range, or price band, has a floor price of 19.50 times and a cap price of 20.60 times the face value of the shares.
• Investors can place bids in multiples of 72 shares, with a minimum bid of 72 shares.

According to the company’s advertisement in Business Standard, the price-to-earnings (P/E) ratio at the upper end of the price band is 17.46 times, which is lower than the average P/E ratio of 29.87 times for other companies in the same industry.

Share Allocation:

• 50% of the shares in this IPO are reserved for Qualified Institutional Buyers (QIBs).
• 15% are reserved for Non-Institutional Investors (NIIs).
• 35% are reserved for retail investors.

Important Dates

• The basis for share allocation will be finalized on August 26.
• Refunds will start being processed on August 27.
• Shares will be credited to the demat accounts of allottees on the same day.
• The shares are expected to be listed on the BSE and NSE on August 29.

About Orient Technologies

Founded in 1997 and based in Mumbai, Maharashtra, Orient Technologies is an IT solutions provider. The company specializes in IT infrastructure, IT-enabled services (IteS), and cloud and data management services. Orient Technologies works with major tech partners like Dell, Fortinet, and Nutanix to deliver sophisticated IT solutions.

Comparing to Industry Peers

Orient Technologies’ listed peers include:

• Dynacons Systems & Solutions Ltd (P/E of 29.47)
• HCL Technologies Ltd (P/E of 26.93)
• Wipro Ltd (P/E of 23.39)
• LTIMindtree Ltd (P/E of 34.56)
• Allied Digital Services Ltd (P/E of 26.05)
• Dev Information Technology Ltd (P/E of 29.01)
• Tech Mahindra Ltd (P/E of 55.17)
• Silicon Rental Solutions Ltd (P/E of 14.41)

Financial Performance

For the fiscal year ending March 31, 2024, Orient Technologies saw an 8% increase in profit after tax (PAT) and a 12% increase in sales compared to the previous year.

IPO Structure

• The total IPO is valued at ₹214.76 crore.
• It includes a fresh issue of ₹120 crore and an offer-for-sale (OFS) of 46 lakh equity shares by the company’s promoters, including Ajay Baliram Sawant, Umesh Navnitlal Shah, Ujwal Arvind Mhatre, and Jayesh Manharlal Shah.

Use of Proceeds

The funds raised will be used for general corporate purposes, including capital expenditures and purchasing an office building in Navi Mumbai.

Management of the IPO

• Elara Capital (India) Private Limited is the lead manager for the IPO.
• Link Intime India Private Ltd is the registrar for the issue.