Orient Technologies IPO: The initial Public offering opens for subscription on 21 August 21, 2024 and closes on 23 August, 2024. From Financials to Key risks, here are 10 things to know from the Red Herring Prospectus (RHP) before you subscribe
The initial Public offering opens for subscription on 21 August, 2024 and closes on 23 August, 2024. The pricing range or the lot size for Orient Technologies' IPO is ₹195 to ₹206 per share. Applications must be made for a minimum lot size of 72 shares. Retail thereby are required to invest a minimum of ₹14,832.
The book-built IPO of Orient Technologies is valued at ₹214.76 crores. The issue consists of an offer for sales for 0.46 crore shares, valued at ₹94.76 crores, and a fresh issue of 0.58 crore shares, totaling ₹120.00 crores.
The company plans to use the net proceed for purchase of office space at Plutonium Business Park, Trans-Thana Creek Industrial Area, Turbhe MIDC, District Thane, Navi Mumbai, at units nos. 1201, 1202, 1203, and 1204, respectively (together, Navi Mumbai Property);
The other funding requirements for capital expenditures are as follows: i. Equipment purchases for the Network Operating Center (NOC) and Security Operation Center (SOC) setup at the Navi Mumbai property; and ii. Equipment and device purchases for Devise-as-a-Service (DaaS) offering.
General Corporate purposes
The company was established in 1997 and is based in Mumbai, Maharashtra. It provides information technology (IT) solutions. It has accumulated substantial experience over the years in producing products and solutions for a number of business areas, including IT Infrastructure, Cloud, IT Enabled Services (IteS), and Data Management Services.
a. Orient Technologies is heavily reliant on top 10 customers, and the loss of such customers or a significant reduction in purchases by such customers will have a material adverse impact on its business.
b. Orient Technologies depend on few Customer Industries for majority of its revenue from operations. Loss of customers in these Customer Industries may result in an adverse effect on its business, revenue from operations and financial conditions.
Orient Technologies Limited's profit after tax (PAT) increased by 8% and its sales by 12% in the fiscal year that concluded on March 31, 2024, compared to the net profit and sales for the year that ended on March 31, 2023.
Orient Technologies promoters include Ajay Baliram Sawant, Jayesh Manharlal Shah, Umesh Navnitlal Shah and Ujwal Arvind Mhatre .
The Orient Technologies IPO's book running lead manager is Elara Capital (India) Private Limited, and the issue's registrar is Link Intime India Private Ltd.
On Monday, 26 August, 2024, the allocation for the Orient Technologies IPO is anticipated to be completed. The tentative listing date for the Orient Technologies initial public offering (IPO) is Wednesday, August 28, 2024, on the BSE and NSE.
Peers include Dynacons Systems & Solutions, LTIMindtree Limited, HCL Technologies Ltd, Wipro Ltd, Allied Digital Services, Dev Information Technology Limited, Tech Mahindra which have a Price to earninsg ratio of 16.46 times to 37.51 times FY23 earnings, as per the RHP
The Earnings per share stood at ₹10.94 for Orient Technologies.
The Grey Market Premium or GMP for Orient Technologies IPO currently stands at 0. It means not premium is currently being assigned to Orient Technologies shares.
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