Orient Technologies IPO: IT solutions provider Orient Technologies is going to launch its initial public offering (IPO) on Wednesday, August 21. Investors can place their bids till August 23. The company aims to raise Rs 214.76 crore by offering a total of 10,425,243 shares. This includes 5,825,243 newly issued shares worth Rs 120 crore and 4,600,000 shares worth Rs 94.76 crore from existing investors through an offer for sale (OFS). Shares of Orient Technologies are set to be listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) on August 28.
When was Orient Technologies established
Founded in 1997, Orient Technologies Limited specializes in providing information technology (IT) solutions. Headquartered in Mumbai, the company focuses on developing targeted product solutions tailored to specific areas within its business verticals.
What is an IPO
When a company offers its shares to the public for the first time, it is called an initial public offering (IPO). To raise funds for business expansion, a company may choose to raise capital by selling shares rather than taking out a loan. Through an IPO, a company issues new shares to the public, providing a way to raise the necessary funds.
What the company does
Orient Technologies serves a wide range of clients across public and private sectors, including banking, financial services, insurance, IT & ITES, healthcare and pharmaceuticals. For its public issue, Orient Technologies has allotted 50% of its shares to qualified institutional buyers (QIBs), 15% to non-institutional investors (NIIs) and 35% to retail investors.
Who will have how much share?
Elara Capital (India) is the book-running lead manager for Orient Technologies’ IPO, which will be listed on the NSE and BSE. The IPO allotment reserves 50% of shares for qualified institutional investors, 35% for retail investors and 15% for non-institutional investors.
when will the IPO close
The company has announced that its initial share sale will begin on August 21 and end on August 23. Through the IPO, Orient Technologies will offer fresh shares worth Rs 120 crore and 46 lakh equity shares worth Rs 95 crore from the promoters, taking the total issue size to Rs 215 crore. The funds raised from the sale of new shares will be used for capital expenditure, acquiring office space in Navi Mumbai and general operational requirements.
Orient Technologies IPO Price Band
Orient Technologies has fixed the price band for its IPO between Rs 195 and Rs 206 per share. Retail investors can bid for a minimum of one lot, consisting of 72 shares. At the upper price band of Rs 206, investing in one lot will cost ₹14,832. Retail investors can apply for 13 lots or 936 shares, with a total investment of ₹1,92,816 at the upper price band.
How the Funds from the IPO Will Be Used
The company plans to allocate Rs 79.65 crore from the IPO proceeds to cover capital expenditure (capex). Around Rs 10.35 crore will be invested in the acquisition of office premises in Navi Mumbai. Additionally, a portion of the net proceeds will be used for general corporate purposes.
When will the share be listed
Share allotment for Orient Technologies IPO is expected to be finalised on August 26. The refund process will begin on August 27, with shares being credited to the demat accounts of allottees on the same day. Shares of Orient Technologies are expected to be listed on BSE and NSE on January 29. The company reported an 8% growth in profit after tax (PAT) and a 12% growth in sales for the financial years ending March 31, 2024 and March 31, 2023.
How is the financial situation of Company?
Orient Technologies’ financial performance has witnessed a positive growth, with operating revenue increasing from Rs 467.44 crore in FY 2021-22 to Rs 535.10 crore in FY 2022-23. Additionally, the company’s profit increased from Rs 33.49 crore to Rs 38.30 crore during the same period.