Orient Technologies IPO: Issue To Open On August 21 To Raise Rs 214.76 Cr

The rapidly expanding information technology (IT) solutions provider Orient Technologies Limited, headquartered in Mumbai, is going to conduct its initial public offering (IPO). The public issue will have a subscription window that will open on Wednesday, August 21, 2024, and close on Friday, August 23, 2024.

On February 20, 2024, the company submitted its IPO papers to Sebi. The IPO, which has a face value of Rs. 10, consists of an offer for sale (OFS) by the Promoter Selling Shareholders to sell up to 0.46 crore shares valued at Rs 94.76 crores and a fresh issuance of Rs. 120 crores consisting of 0.58 crore shares.

The IPO price band of Rs 195 to Rs 206 per share has been fixed by Orient Technologies with a minimum lot size of 72 shares which suggests that retail investors need to make a minimum investment of Rs 14,832.

The sale of equity shares by Ajay Baliram Sawant, Umesh Navnitlal Shah, Ujwal Arvind Mhatre, and Jayesh Manharlal Shah, up to 1,150,000 equity shares, represents the whole of the offer for sale.

A minimum of 15% of the offer is available for allocation to non-institutional investors, a maximum of 50% of the offer is available for allocation to qualified institutional buyers, and a minimum of 35% of the offer is available for allocation to retail individual investors. The offer is being made through the book-building process.

The proceeds from the fresh issue, to the extent of Rs 79.65 crore for funding its capital expenditure requirements; Rs 10.35 crore for the acquisition of office premises at Navi Mumbai; and General Corporate purposes, as per the DRHP of Orient Technologies.

The registrant of the offer is Link Intime India Private Limited, while Elara Capital (India) Private Limited is the sole book-running lead manager for the initial public offering. It is proposed that the equity shares be listed on the NSE and BSE on Wednesday, August 28, 2024. On Monday, August 26, 2024, the allotment for the Orient Technologies IPO is anticipated to be completed.

Ujwal Arvind Mhatre, Umesh Navnitlal Shah, Jayesh Manharlal Shah, and Ajay Baliram Sawant co-founded Orient Technologies, which started operations in 1997. The company has accumulated considerable expertise in developing products and solutions for specialised fields in IT Infrastructure, IT Enabled Services (IteS), Cloud, and Data Management Services throughout the years. It works with leading tech firms like Dell, Fortinet, and Nutanix to provide cutting-edge solutions customised to each client's unique requirements.

Orient Technologies has Rs 101.20 crore in its order book as of June 30, 2024. In fiscal year 2024, Orient Technologies' revenue from operations climbed to Rs 602.89 crore from Rs 535.10 crore, while its profit after tax jumped to Rs 41.45 crore from Rs 38.30 crore in fiscal year 2023.

In the public and private sectors, Orient Technologies' clientele includes companies in the banking, financial services, insurance (BFSI), information technology (IT), healthcare, and pharmaceutical industries, among others.