The Orient Technologies Limited’s Initial Public Offering (IPO) has attracted much attention from investors in the business world. This IPO is a major accomplishment for Orient Technologies Limited, which has gained global recognition through its remarkable technological innovations.
This article aims to provide you with important information about this IPO, such as dates, prices, and investment considerations to help you determine if it goes well with your investment plan.
Orient Technologies in brief
Orient Technologies is an IT solutions firm situated in Mumbai, Maharashtra, that started operations way back in 1997. In addition, over time – the company honed its skills in developing niche products and solutions across different industry verticals, such as:
- IT infrastructure: Offers inclusive services like Data Centre Solutions, End-User Computing, etc.
- IT enabled services (IteS): Providing a range of services including:
- Security services,
- Multi-vendor support,
- Network operations centre services,
- Managed services, etc.
- Cloud and data management: Assisting in the seamless migration of workloads from data centres to the cloud.
They partner with diverse technology partners such as:
- Fortinet, Inc.(Fortinet),
- Dell International Services India Private Limited (Dell), and
- Nutanix Netherlands B.V.(Nutanix)
Orient Technologies Limited IPO
Orient Technologies Limited IPO consists of 46 lakh equity shares offered for sale or OFS by its promoters and a fresh issue of ₹120 crores. The total size of the issue is ₹214.76 crores.
The price band for Orient Technologies Limited IPO is ₹195 – ₹206 per equity share; each having a face value of ₹10. Investors can make their bids to this IPO from August 21st to August 23rd.
Anchor investors will have their allocation done on Tuesday, August 20th. Bids can be in multiples of 72 shares; therefore, there is a minimum bid price of 72.
| IPO opening date | August 21, 2024 |
| Date of closure | August 23, 2024 |
| Face value | ₹10 per share |
| IPO price band | ₹195 to ₹206 per share |
| Lot size | 72 shares |
| Issue size | ₹214.76 crores |
| Fresh issue | ₹120 crores |
| Offer-for-sale | ₹94.76 crores |
Source: Orient Technologies Limited RHP
Orient Technologies IPO GMP (Grey Market Premium) currently stands at ₹0 as of August 17, 2024.
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Fund utilisation plan
The company has outlined the following uses for the net proceeds from the new share issuance:
Capital expenditure – ₹79.6 crores will be allocated for the purpose of capital expenditure needs.
Purchase of an office building in Navi Mumbai – Up to a sum of ₹10.3 crores will be used to buy an office building in Navi Mumbai.
General corporate purposes – All remaining funds shall be utilised for management determined strategic initiatives.
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Orient Information Technology financials
Get details of key financial indicators here:
| Financials | FY24 | FY23 | FY22 |
| Revenue from operations (₹ millions) | 6,028.93 | 5,351.02 | 4,674.43 |
| EBITDA (₹ millions) | 566.18 | 486.44 | 458.25 |
| Profit/loss (₹ millions) | 414.48 | 382.98 | 334.93 |
| Net debt (₹ millions) | (156.99) | (68.67) | (229.05) |
| ROCE | 28.42 | 31.45 | 45.25 |
| RONW | 23.64% | 29.73% | 35.59% |
Source: Orient Technologies Limited RHP
Orient Technologies – Investment considerations
Strengths
1. A prestigious client base spanning various industries:
The strong reputation of the company has been established since 1997, possessing a diverse clientele across verticals such as BFSI, IT, and healthcare, with hyper-converged infrastructure, end-user computing and robotic process automation being our forte in addition to partnerships with leading tech firms like Dell Fortinet or Nutanix.
As a result, the company provides solutions tailor-made, high-quality for each customer’s request.
2. A broad and diverse range of IT solutions and services:
The company provides an extensive and varied array of products and services across three main sectors:
- IT Infrastructure,
- ITeS, and
- Cloud and Data Management Services.
While this segment has the longest operational history and has been their largest revenue generator in Fiscal 2024, 2023, and 2022, they have consistently expanded their offerings within this segment by introducing new products.
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Weaknesses
1. Reliance on top customers:
The business strongly relies on its most leading clients, and losing any of them or a decrease in their orders from those clients can have an adverse effect on this company’s growth. Hence, close ties with clients are crucial for the company’s survival.
2. Reliance on a few industries:
The company depends on a few key customer industries for most of its revenue. Losing customers in these sectors could significantly impact their business, revenue, and financial stability.
However, their ability to customise and tailor solutions has helped them secure prominent clients across various industries, including leading public and private sector entities in banking, financial services, insurance (BFSI), IT, ITeS, and healthcare/pharmaceuticals.
Bottomline
The IPO of Orient Technologies Limited serves as an alluring opportunity for investors who want to be part of an organisation with an impressive past record regarding IT solutions that vary widely across essential market sectors. With a plethora of services it offers and partnerships that are strategic and financially stable throughout the years, Orient Technologies has become well known in the technological arena. Nevertheless, prospective shareholders must take time before deciding since any obstacle from some selected clientele or sectors might affect their economic status.
