Orient Technologies IPO Subscripton Details on Day 2

22 Aug 2024 , 01:13 PM

Orient Technologies Ltd opened its initial public offering (IPO) for public subscription on Wednesday. The IPO will close tomorrow on August 23.

The IPO saw a 6.99 times subscription on the first day of bidding. The price band for the IPO is set at ₹195-206 per share.

At the time of writing at 12:08 pm on Thursday, the second day of bidding, the IPO had received a 11.29 times subscription. The retail investor quota was subscribed 17.42 times. The non-institutional investors (NII) category was subscribed 11.41 times. The Qualified Institutional Buyers (QIBs) category saw a 0.05 times subscription.

The share allotment is expected to be finalized by August 26. The shares are scheduled to be listed on the NSE and BSE on August 28.

The IPO comprises a fresh issue of ₹120 Crore and an offer for sale (OFS) of up to 46 lakh equity shares valued at ₹95 Crore. The total size of the IPO is ₹215 Crore.

The promoters offloading shares through the OFS include Ajay Baliram Sawant, Umesh Navnitlal Shah, Ujwal Arvind Mhatre, and Jayesh Manharlal Shah.

The proceeds from the fresh issue will be utilized as follows:

• ₹79.65 Crore will be allocated for capital expenditure requirements.
• ₹10.35 Crore will be used for acquiring office premises in Navi Mumbai.
• A portion of the funds will be allocated for general corporate purposes.

Investors can bid for a minimum of 72 equity shares and in multiples thereafter.

Orient Technologies Ltd has developed expertise in IT Infrastructure, IT Enabled Services (ITeS), and Cloud and Data Management Services.

The company’s client base includes both public and private sector organizations across industries such as Banking, Financial Services, Insurance (BFSI), IT & ITeS, Healthcare, and Pharmaceuticals.

Some of the company’s notable clients are Coal India, Mazagon Dock, D’Dcor, Jyothy Labs, ACG, Integreon, Bluechip, and Tradebulls.

The company operates primarily within India, with offices in cities including Navi Mumbai, Pune, Ahmedabad, New Delhi, Bengaluru, and Chennai. Additionally, the company has a branch office in Singapore.

As of June 30, 2024, the company’s order book stood at ₹101.20 Crore. The company’s revenue from operations for fiscal year 2024 increased to ₹602.89 Crore, up from ₹535.10 Crore in the previous year.

The profit after tax for fiscal 2024 rose to ₹41.45 Crore, compared to ₹38.30 Crore in fiscal 2023. Elara Capital (India) Pvt Ltd is serving as the sole book-running lead manager for the IPO. The equity shares will be listed on both the BSE and NSE.