The Orient Technologies IPO is getting a lot of attention from both retail and non-institutional investors as it nears the end of its subscription period today, Friday, August 23.
On the second day of bidding, the IPO was oversubscribed by 16.96 times, according to data from the BSE. The retail investors’ portion was particularly popular, being oversubscribed by 24.49 times, while the non-institutional investors (NII) segment was oversubscribed by 20.97 times. Qualified Institutional Buyers (QIBs) showed a more moderate interest, with their portion being subscribed 16%.
On the first day, the overall subscription was 6.65 times, with the retail portion oversubscribed by 10.50 times, the NII portion by 6.17 times, and the QIB portion by 2%.
Orient Technologies, based in Mumbai, is an IT solutions provider that secured ₹64.43 crores from anchor investors before the IPO. The IPO price range is set at ₹195 to ₹206 per share, each with a face value of ₹10.
The IPO allocates 50% of the shares for QIBs, 15% for NIIs, and 35% for retail investors.
Founded in 1997, Orient Technologies specializes in IT solutions, including IT Infrastructure, IT Enabled Services (IteS), Cloud, and Data Management Services.
Brokerage Opinions:
- SBICAP Securities Ltd: They recommend long-term investors subscribe to the issue, citing the company’s solid fundamentals and steady growth prospects. However, they note the company faces tough competition in a fragmented market.
- Arihant Capital Markets Ltd: They also advise a “Subscribe for Long Term,” highlighting the company’s strong customer base and strategic partnerships, which position it well to capitalize on growing demand for advanced IT services.
IPO Details:
The IPO, worth ₹214.76 crore, includes a fresh issue of ₹120 crore and an offer-for-sale (OFS) of 46 lakh shares by the promoters.
The company plans to use the funds for general business purposes, capital expenditures, and purchasing an office building in Navi Mumbai. Elara Capital (India) Private Limited is managing the IPO, and Link Intime India Private Ltd is the registrar.
Grey Market Premium:
The grey market premium (GMP) for Orient Technologies is currently ₹70, indicating that the shares are expected to list at around ₹276, which is 33.98% higher than the IPO price of ₹206. The GMP has been rising, showing strong demand for the shares.
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