IPO Alert: Things to know before investing in Orient Technologies Limited IPO

IPO Alert: Orient Technologies Limited has set its Initial Public Offering (IPO) price between Rs. 195 and Rs. 206 per share. The IPO will be open for subscription from Wednesday, August 21, to Friday, August 23. Anchor investors will be allocated shares on Tuesday, August 20.

Price Information

The IPO shares are priced 19.50 to 20.60 times their face value of ₹10. Investors can place bids in multiples of 72 shares, with the minimum bid being for 72 shares.

Valuation Comparison

According to an advertisement in Business Standard, the IPO's price-to-earnings (P/E) ratio at the top end of the price range is 17.46 times the earnings per share (EPS) for 2024. This is lower compared to the average industry P/E ratio of 29.87 times.

Share Allocation

For the IPO, 50% of the shares are reserved for qualified institutional buyers (QIBs), 15% for non-institutional investors (NIIs), and 35% for retail investors.

Important Dates

• Share Allocation: Expected to be finalized on Monday, August 26.
• Refund Processing: Starts on Tuesday, August 27.
• Shares Deposited: Same day as the refund.
• Listing Date: Expected to be on the BSE and NSE on Monday, January 29.

Company Background

Orient Technologies Limited was established in 1997 and is based in Mumbai, Maharashtra. The company provides IT solutions, including IT infrastructure, IT-enabled services (IteS), cloud, and data management services. They partner with major technology firms like Dell, Fortinet, and Nutanix.

Competitors' P/E Ratios

• Dynacons Systems & Solutions Ltd: 29.47
• HCL Technologies Ltd: 26.93
• Wipro Ltd: 23.39
• LTIMindtree Ltd: 34.56
• Allied Digital Services Ltd: 26.05
• Dev Information Technology Ltd: 29.01
• Tech Mahindra Ltd: 55.17
• Silicon Rental Solutions Ltd: 14.41

Recent Financial Performance

Orient Technologies reported an 8% increase in profit after tax (PAT) and a 12% rise in sales for the fiscal year ending March 31, 2024, compared to the previous year.

IPO Details

The IPO is valued at Rs. 214.76 crore, including a fresh issue of Rs. 120 crore and an offer-for-sale (OFS) of 46 lakh shares by the promoters. The promoters selling shares are Ajay Baliram Sawant, Umesh Navnitlal Shah, Ujwal Arvind Mhatre, and Jayesh Manharlal Shah.

Use of Funds

The proceeds from the IPO will be used for general corporate purposes, capital expenditures, and purchasing an office building in Navi Mumbai.

Also read: Mutual Funds: 5 Common SIP Mistakes to Avoid for Better Investment Results

Lead Manager and Registrar

Elara Capital (India) Private Limited is managing the IPO process, while Link Intime India Private Ltd will handle the registration.