Orient Technologies IPO: Public Issue Subscribed 62x On Final Day; GMP Soars High; Check Allotment Date

Mumbai-based IT solutions provider Orient Technologies' Initial Public Offering (IPO) has been met with overwhelming enthusiasm from investors. As the bidding window closes today, Friday, August 23, the IPO has garnered 62.20 times subscription, indicating robust investor confidence and interest in the company.

As of 1:30 pm today, the IPO received bids for a staggering 46,33,81,344 shares against the 74,49,846 shares on offer, according to data from the Bombay Stock Exchange (BSE). This substantial over-subscription reflects the high demand for Orient Technologies' shares.

The IPO has seen a tremendous response across all investor categories. The portion reserved for retail investors was subscribed 48.32 times, showcasing the strong retail interest in Orient Technologies. Non-institutional investors (NIIs) demonstrated even greater enthusiasm, with their segment being subscribed 157 times. Meanwhile, the Qualified Institutional Buyers (QIBs) portion of the offering saw a healthy 13.65 times subscription.

This surge in demand on the final day is a continuation of the momentum that the IPO has built over the past two days. On Thursday, August 22, the second day of the subscription, the IPO was oversubscribed 16.96 times, with the retail investors' portion seeing a subscription of 24.49 times and the NII segment being subscribed 20.97 times. The QIB quota, while lower in comparison, was still noteworthy, being subscribed at 16%.

The IPO's opening day also set the tone for this demand. On the first day of bidding, the IPO witnessed a 6.65 times subscription overall. The retail segment led the charge with a 10.50 times over-subscription, while the NII portion saw a 6.17 times subscription. The QIB segment, in its initial response, was subscribed at 2%.

Orient Technologies, founded in 1997, has established itself as a key player in the IT solutions sector, specializing in IT infrastructure, IT-enabled services (ITeS), cloud computing, and data management services. The company's IPO is valued at Rs 214.76 crores, comprising a fresh issue of Rs 120 crore and an offer-for-sale (OFS) of 46 lakh equity shares by the company's promoters.

The promoters selling their shares in the OFS include Ajay Baliram Sawant, Umesh Navnitlal Shah, Ujwal Arvind Mhatre, and Jayesh Manharlal Shah. The funds raised through the fresh issue will be allocated towards general corporate purposes, including capital expenditure requirements and the acquisition of an office building in Navi Mumbai. This strategic investment is expected to boost Orient Technologies' operational capabilities and support its growth ambitions in the IT sector.

The IPO's price band has been set between Rs 195 to Rs 206 per equity share, with each share carrying a face value of Rs 10. The allocation of shares has been carefully structured, with 50% reserved for QIBs, 15% for NIIs, and the remaining 35% for retail investors.

Orient Technologies secured Rs 64.43 crores from anchor investors prior to the IPO. This pre-IPO funding helped build confidence among potential investors and set the stage for the strong subscription figures witnessed during the bidding process.

Elara Capital (India) Private Limited is the book-running lead manager for the IPO, while Link Intime India Private Ltd. has been appointed as the issue's registrar.

As of today, the grey market premium (GMP) for the Orient Technologies IPO stands at Rs 70, indicating that shares are trading at a premium over the upper end of the IPO price band. This suggests a potential listing price of Rs 276 per share, representing a 33.98% increase over the issue price of Rs 206.

The rising GMP over the last 15 sessions, with fluctuations between Rs 0 to Rs 70, highlights strong investor sentiment and bodes well for a positive debut on the stock market. A grey market premium is often considered a barometer of investor confidence, reflecting their willingness to pay more than the issue price ahead of the listing.