IPO screener: Orient Tech is a big hit among retail, HNIs on Day 1

Orient Technologies’ IPO received a grand response from HNI and retail of investors on Day 1 of the issue opening on Wednesday. The IPO was subscribed at 6.65 times at the end of the opening day.

Mumbai-based IT solutions provider Orient Technologies’ initial public offering (IPO) will close on Friday, August 23. The IPO consists of a fresh issue of up to ₹120 crore and an offe-for-sale (OFS) of up to 46 lakh shares by the promoter selling shareholders. The price band has been determined at ₹195–206 a share. Investors can bid for a minimum of 72 equity shares and in multiples of 72 equity shares thereafter.

At the upper end of the price band, the IPO size would be ₹214.76 crore.

Up to 50 per cent of the offer has been reserved for qualified institutional buyers, 15 per cent for non-institutional bidders (HNIs) and 35 per cent for retail investors. The quota for retail investors was subscribed by 10.50 times, while that of HNIs by 6.17 times. QIBs, however, are yet to make bid.

As part of the IPO exercise, Orient Technologies on Tuesday garnered ₹64.43 crore from anchor investors. The company allocated 31,27,572 shares at ₹206 a share to anchor investors, who included foreign and domestic institutions. Among them were Pine Oak Global, Saint Capital Fund, SB Opportunity Fund I, Elara Capital (Mauritius) Fund, and Rajasthan Global Securities

The proceeds from its fresh issuance to the extent of ₹10.35 crore will be used for the acquisition of office premises at Navi Mumbai, ₹79.65 crore for funding its capital expenditure requirements and general corporate purposes.

Incorporated in 1997, Orient Technologies has built deep expertise to develop products and solutions for specialised disciplines across its business verticals such as IT Infrastructure products and solutions, IT-enabled services (IteS), and Cloud and Data Management Services. The company’s business operations involve technologically advanced solutions, for which it has to collaborate with a range of technology partners, including Dell International Services India Pvt Limited (Dell), Fortinet, Inc. (Fortinet), and Nutanix Netherlands B.V. (Nutanix).

The Mumbai-based company has established strong relationships with marquee customers such as Coal India, Mazagon Dock, D’Décor, Jyothy Labs, ACG, Integreon, Bluechip, Tradebulls, VJS Bank, VKS Bank, and the Joint Commissioner of Sales Tax (GST Mahavikas), Mumbai.

As of June 30, 2024, Orient Technologies’ order book stood at ₹ 101.20 crore.

Elara Capital (India) Pvt Ltd is the sole book-running lead manager, and Link Intime India Pvt Ltd is the registrar of the offer. The equity shares are proposed to be listed on the BSE and NSE.