- Orient Technologies Limited is an information technology (IT) solutions provider with headquarters in Mumbai. Orient Technologies IPO plans to raise Rs 214.76 crores. The issue is a combination of fresh issue and offer for sale.
| IPO opens | August 21, 2024 |
| IPO Closes | August 23, 2024 |
| IPO Size (Rs.) | ₹214.76 Cr |
| Breakup | Fresh issue ₹120.00 Cr + OFS ₹94.76 Cr |
| Face Value: | ₹ 10 |
| IPO Price in Rs : | ₹195 to ₹206 per share |
| Minimum Lot | 72 Shares |
| Listing At | NSE , BSE (mainboard) |
| QIB | ~50 % |
| NII Quota | ~15% |
| Retail Quota | ~35% |
| Lead Manager | Elara Capital (India) Private Limited |
| Registrar | Link Intime |
About Orient Technologies IPO:
- Orient Technologies Limited is an information technology (IT) solutions provider.
- It was incorporated in the year 1997 at Mumbai
- Business verticals:
- IT Infrastructure: Products and solutions. These include Data Centre Solutions and End-User
- Computing.
- IT Enabled Services include Managed Services, Multi-Vendor Support Services, IT Facility Management Services, Network Operations Centre Services, Security Services.
- Cloud and Data Management Services: Services include migration of workload from data centre to cloud.
- Ajay Baliram Sawant, Jayesh Manharlal Shah, Umesh Navnitlal Shah and Ujwal Arvind Mhatre are the promoters of the company.
Financials : Orient Technologies IPO
| Particulars / Rs. Cr | 2024(12) | 2023(12) | 2022(12) |
| Total Borrowings | 4.82 | 12.86 | 2.28 |
| Revenue from Operations | 602.89 | 535.1 | 467.44 |
| Revenue Growth (%) | 12.67% | 14.47% | – |
| EBITDA | 56.62 | 48.64 | 45.83 |
| EBITDA Margin (%) | 9.39% | 9.09% | 9.80% |
| Net Profit for the year | 41.45 | 38.3 | 33.49 |
| Net Profit (%) | 6.87% | 7.16% | 7.17% |
| Equity Share Capital | 35.82 | 17.5 | 17.5 |
| Net Worth | 175.31 | 128.82 | 94.11 |
| Post issue Share Capital | 41.64 | ||
| FV | 10.0 | ||
| IPO price | 206.0 | ||
| EPS Fy23 | 9.2 | ||
| PE Fy23 | 22.4 | ||
| EPS Fy24 (annualized) | 10.0 | ||
| PE Fy24 (annualized) | 20.7 | ||
| Market cap in Lacs | 858 | ||
| Market cap / Sales | 1.42 |
Anchor: Orient Technologies IPO
Salient Points: Orient Technologies IPO
- OFS is by 4 promoters and their stake will drop from 98% to 73% post IPO.
- Proceeds from the fresh issue :
- Acquisition of office premise at Navi Mumbai 10.35 cr
- Funding the Capital Expenditure requirements: 79.65 cr
- Purchase of equipment for setting up of Network Operating Centre and Security Operation Centre 10.08 cr
- Purchase of equipment and devices to offer Devise-as-a-Service (DaaS) offering. 69.57 cr.
- In Feb 2024, company had raised Rs. 11 cr at Rs. 133 per share from several individuals,
- Company have collaborated with a wide range of technology partners including Dell International Services India Private Limited (Dell) and Fortinet, Inc. (Fortinet) and Nutanix Netherlands B.V. (Nutanix).
- This has helped them to offer service models such as infrastructure as a service (IaaS), platform as a service (PaaS) and software as a service (SaaS).
- Peers: Though company has shown many Listed industry peers. Some relevant one like Sonata Software trades at 42.5 P/E, Allied Digital Services 28.3 times ,and Dev Information Technology 25.6 times its Price /E (TTM) .
- Products accounts for about 75% revenue and rest from services.
- Company serves diverse customer industries which include banking, financial services, insurance (BFSI), IT, ITES, and healthcare/pharmaceuticals. Some major clients include Coal India, Mazagon Dock, Joint Commissioner of Sales Tax (GST Mahavikas), and D’Décor Exports.
- Most of the revenues are from within the country though they serve many MNCs.
- Orient Technologies registered PAT CAGR of 70.5% between fiscal 2020-2024.
- P/E ratio stands at 20.7x
- I intend to apply in Orient Technologies IPO . The company has strategically expanded its portfolio into cloud computing and data management services, which are experiencing rapid growth and have better margins. Pricing looks fair compared to its peer and financial performance has been steady.
- GMP as reported on social media has been Rs. 70 (34%)
- This post is exploratory and educational purposes only. Please do your own diligence before investing in SME IPOs like this.
- Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . I have in the past cleared some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.