Orient Technologies IPO subscribed 13.4x on Day 2 so far; HNI portion booked 20 times
Mumbai-based Orient Technologies is selling its shares in the price band of Rs 195-206 apiece. Investors can apply for a minimum of 72 shares and its multiples thereafter.
- Aug 22, 2024,
- Updated Aug 22, 2024 2:43 PM IST
The initial public offering (IPO) of Orient Technologies continued to attract a strong response from the investors during the second day of the bidding process thanks to strong buying interest from retail and HNI investors of the issue. The issue was booked about 6.65 times on the first day of the bidding.
The Mumbai-based Orient Technologies is selling its shares in the price band of Rs 195-206 apiece. Investors can apply for a minimum of 72 shares and its multiples thereafter. It is looking to raise Rs 214.76 crore via IPO, which includes a fresh share sale of Rs 120 crore and an offer-for-sale (OFS) of 46 lakh equity shares.
According to the data, the investors made bids for 9,98,70,120 equity shares, or 13.41 times, compared to the 74,49,846 equity shares offered for the subscription by 2.15 pm on Thursday, August 22. The three-day bidding for the issue will conclude on Friday, August 23.
The allocation for non-institutional investors (NIIs) was subscribed 14.22 times, while the portion reserved for retail investors saw a subscription of 20.41 times. However, the quota set aside for qualified institutional bidders (QIBs) quota was merely five per cent as of the same time.
Incorporated in 1997, Mumbai-based Orient Technologies is a fast-growing information technology (IT) solutions provider. Orient Technologies offers a wide range of customized offerings and its ability to tailor solutions to meet customers' specific needs have enabled it to attract prominent clients across various industries.
The grey market premium of Orient Technologies has seen a mild correction amid the rising volatility in the broader markets. Last heard, the company was commanding a premium of Rs 50 per share in the unofficial market, suggesting a listing pop of about 25 per cent for the investors. However, the premium in the grey market stood around Rs 70 a day ago.
Brokerages are mostly positive on the issue suggesting investors to subscribe to it for a long term. They are positive on its experience management, strong financials, long term relationship with existing clients, asset light model and expansion plans in DaaS model. However, business in only India, rising competition and reliance on select names are the key concerns for the company.
Orient is looking to benefit from this growth through its strategic partnerships with companies like Dell which provides more than $ 10 million business to the company and other partnerships like Fortinet, and Nutanix. It is strategically looking to expand its Ebitda margins to 12 per cent in FY25, increasing its revenue share in IT enabled services, said SMIFS.
"We recommend to subscribe to the issue for good long term as the company client list is impressive, the fund raise would enable growth, both organic and inorganic, as well as geographically, for the company and the issue is also attractively priced, the flip side being the company would be new to inorganic opportunities and the pangs of M&A and external funds as well," it said.
Ahead of its IPO, Orient Technologies raised Rs 64.43 crore from anchor investors by allocating them 31,27,572 shares for Rs 206 apiece. 50 per cent for the net offer has been reserved for qualified institutional bidders, while non-institutional investors will get 15 per cent of the net offer. Retail investors will have 35 per cent of the net offer allocated for them.
Orient Technologies reported a net profit of Rs 41.45 crore, with a revenue of Rs 606.86 crore for the financial year ended on March 31, 2024. The company had clocked a net profit of Rs 38.3 crore with a revenue of Rs 542.01 crore for the fiscal year 2022-23.
"Orient Tech is available at a P/E of 20.7 times, which appears to be attractively priced compared to its peers. Considering its expansion to other related areas including IT facility management, network operations center, cybersecurity, data management, Daas services and positive industry tailwinds, we assign a 'subscribe' rating," said Geojit Financial Services in its IPO note.
Elara Capital (India) is the book running lead manager of the Orient Technologies IPO, while Link Intime India is the registrar for the issue. Shares of the company shall be listed on both BSE and NSE, with Wednesday, August 28 as the tentative date of listing at the bourses.
The initial public offering (IPO) of Orient Technologies continued to attract a strong response from the investors during the second day of the bidding process thanks to strong buying interest from retail and HNI investors of the issue. The issue was booked about 6.65 times on the first day of the bidding.
The Mumbai-based Orient Technologies is selling its shares in the price band of Rs 195-206 apiece. Investors can apply for a minimum of 72 shares and its multiples thereafter. It is looking to raise Rs 214.76 crore via IPO, which includes a fresh share sale of Rs 120 crore and an offer-for-sale (OFS) of 46 lakh equity shares.
According to the data, the investors made bids for 9,98,70,120 equity shares, or 13.41 times, compared to the 74,49,846 equity shares offered for the subscription by 2.15 pm on Thursday, August 22. The three-day bidding for the issue will conclude on Friday, August 23.
The allocation for non-institutional investors (NIIs) was subscribed 14.22 times, while the portion reserved for retail investors saw a subscription of 20.41 times. However, the quota set aside for qualified institutional bidders (QIBs) quota was merely five per cent as of the same time.
Incorporated in 1997, Mumbai-based Orient Technologies is a fast-growing information technology (IT) solutions provider. Orient Technologies offers a wide range of customized offerings and its ability to tailor solutions to meet customers' specific needs have enabled it to attract prominent clients across various industries.
The grey market premium of Orient Technologies has seen a mild correction amid the rising volatility in the broader markets. Last heard, the company was commanding a premium of Rs 50 per share in the unofficial market, suggesting a listing pop of about 25 per cent for the investors. However, the premium in the grey market stood around Rs 70 a day ago.
Brokerages are mostly positive on the issue suggesting investors to subscribe to it for a long term. They are positive on its experience management, strong financials, long term relationship with existing clients, asset light model and expansion plans in DaaS model. However, business in only India, rising competition and reliance on select names are the key concerns for the company.
Orient is looking to benefit from this growth through its strategic partnerships with companies like Dell which provides more than $ 10 million business to the company and other partnerships like Fortinet, and Nutanix. It is strategically looking to expand its Ebitda margins to 12 per cent in FY25, increasing its revenue share in IT enabled services, said SMIFS.
"We recommend to subscribe to the issue for good long term as the company client list is impressive, the fund raise would enable growth, both organic and inorganic, as well as geographically, for the company and the issue is also attractively priced, the flip side being the company would be new to inorganic opportunities and the pangs of M&A and external funds as well," it said.
Ahead of its IPO, Orient Technologies raised Rs 64.43 crore from anchor investors by allocating them 31,27,572 shares for Rs 206 apiece. 50 per cent for the net offer has been reserved for qualified institutional bidders, while non-institutional investors will get 15 per cent of the net offer. Retail investors will have 35 per cent of the net offer allocated for them.
Orient Technologies reported a net profit of Rs 41.45 crore, with a revenue of Rs 606.86 crore for the financial year ended on March 31, 2024. The company had clocked a net profit of Rs 38.3 crore with a revenue of Rs 542.01 crore for the fiscal year 2022-23.
"Orient Tech is available at a P/E of 20.7 times, which appears to be attractively priced compared to its peers. Considering its expansion to other related areas including IT facility management, network operations center, cybersecurity, data management, Daas services and positive industry tailwinds, we assign a 'subscribe' rating," said Geojit Financial Services in its IPO note.
Elara Capital (India) is the book running lead manager of the Orient Technologies IPO, while Link Intime India is the registrar for the issue. Shares of the company shall be listed on both BSE and NSE, with Wednesday, August 28 as the tentative date of listing at the bourses.