Orient Technologies IPO Details: What Investors Need to Know Before August 21
Orient Technologies, an India-based information technology company that specializes in offering IT infrastructure solutions, IT enabled services (IteS), Cloud and data management services, has published that its IPO is going to be floated on the 21 of August 2024 and the period will end on 23 of August 2024. It aims to gather INR [.] with [.] equity shares that consist of INR 120 crore with [.] equity shares and offer sales for INR [.] with 46,00,000 equity shares, with a face value of INR 10 and a minimum market lot of [.] shares.
Company Overview
Orient Technologies is an IT solutions company with expertise in systems integration, infrastructure management, application development, cloud solutions and security solutions. Orient Technologies was founded as a cutting-edge technology solution provider that caters to many types of business entities. The company is a customer-focused organization that offers exceptional services by incorporating advanced technologies and providing professional advice to clients to improve business operations and profitability.
Company Strategy
The company operates under a product-service business model that aims to offer superior information technology solutions as value propositions to clients’ business value chains. Orient Technologies is focused on achieving goals set by clients for their business requirements. The organization’s key strategic approach is to foster long-term customer loyalty by achieving high customer satisfaction and providing solutions that address their needs. It has strategic alliances and associations with renowned technology vendors that help to bolster its services and continues to train its employees to produce quality service delivery, hence continuing to sustain its position in the market wedge.
Details on IPO Date and Price Band
| IPO Open: | August 21, 2024 |
| IPO Close: | August 23, 2024 |
| IPO Size: | Approx INR [.] Crores, [.] Equity Shares |
| Fresh Issue: | Approx INR 120 Crores, [.] Equity Shares |
| Offer for Sale: | Approx INR [.] Crores (46,00,000 Equity Shares) |
| Face Value: | INR 10 Per Equity Share |
| IPO Price Band: | INR [.] to INR [.] Per Share |
| IPO Listing on: | BSE & NSE |
| Retail Quota: | 35% |
| QIB Quota: | 50% |
| NII Quota: | 15% |
| Discount: | N/A |
IPO Objective:
The amount to be raised through the IPO will be used to purchase office premises, which are units 1201, 1202, 1203 and 1204 at Plutonium Business Park at Turbhe MIDC, Navi Mumbai. They will also be used to meet capital expenses, for instance, acquiring equipment for the establishment of a network operating center (NOC) and a security operation center (SOC). Also, the IPO will be used to acquire equipment and devices to start a Device-as-a-Service (DaaS) business. The balance of the money will be directed for various corporate uses, hence the continuous growth and operational performance.
Market Lot Information on Orient Technologies IPO
The lot size and corresponding amounts are as follows:
- Retail Minimum: 1 lot (N/A shares) for INR[.]
- Retail Maximum: 13 lots (N/A shares) for INR[.]
- S-HNI Minimum: 14 lots (N/A shares) for INR[.]
- B-HNI Minimum: 68 lots (N/A shares) for INR[.]
Allotment Dates for Orient Technologies IPO
Orient Technologies IPO open date is August 21 and the IPO close date is August 23. The IPO allotment date is August 26 and the IPO might list on August 28.
| IPO Open Date: | August 21, 2024 |
| IPO Close Date: | August 23, 2024 |
| Basis of Allotment: | August 26, 2024 |
| Refunds: | August 27, 2024 |
| Credit to Demat Account: | August 27, 2024 |
| IPO Listing Date: | August 28, 2024 |
Application Process of IPO
The IPO can be accessed by submitting an application through the online ASBA (Application Supported by Blocked Amount) facility from the bank through ‘Internet banking’, going to ‘Invest’, and applying for Orient Technologies. On the other hand, the IPO forms are also available for download on the NSE and BSE websites, which the candidates can fill out and submit.
Financial Analysis of Company
| Year | Revenue | Expense | PAT |
| 2021 | INR 248.96 | INR 248.48 | INR 0.13 |
| 2022 | INR 469.12 | INR 424.57 | INR 33.49 |
| 2023 | INR 542.01 | INR 490.06 | INR 38.30 |
For the last three years, Orient Technologies’ financial performance has been on an upward trajectory. For the year 2021, the total revenue was INR 248.96 crore with a marginal PAT of INR 0.13 crore. By 2022, the revenue almost doubled or reached a hypergrowth stage of INR 469.12 crore and PAT rose to INR 33.49 crore, showing a large operational efficiency. For the year 2023, the trend was again upward with the company recording a revenue of INR 542.01 crore, while the PAT was raised to INR 38.30 crore. The costs of operations have been well controlled by observing a proportionate increase in income. This steady revenue generation coupled with an enhancement in profitability is a clear pointer towards Orient Technologies, which has good financial health and a well-implemented business model.
IPO Valuation (FY 2023)
The company’s EPS stands at a value of INR 10.94 with Return on Net Worth (RoNW) of 29.73% and a NAV per share of INR 73.61 in the financial year 2023. The IPO price band of INR [.] per share to raise INR [.] with [.] equity shares, a face value of INR 10 and lot of [.] shares to support capital expenditure requirements, including the purchase of equipment, to launch a Device-as-a-Service (DaaS) offering and general corporate purposes to ensure sustained growth and operational efficiency.
| Earnings Per Share (EPS): | INR 10.94 per Equity Share |
| Price/Earning P/E Ratio: | N/A |
| Return on Net Worth (RoNW): | 29.73% |
| Net Asset Value (NAV): | INR 73.61 per Equity Share |
Competitor Analysis
- Dynacons Systems & Solutions Limited
Dynacons Systems & Solutions Ltd. is one of the largest IT companies in India and offers systems integration services, IT infrastructure management, and IT consulting. It was founded in India and currently operates primarily in the areas of business computing, networking, software services, and IT management. Dynacons works with numerous industries including banking and finance, healthcare and other governmental organizations with an emphasis on the provision of full-service solutions. The company is well known for its values and strategic priorities that include excellence, innovation, and customer-centricity, as well as its focus on the use of technology to boost performance and transform the enterprise and its clients’ businesses.
- HCL Technologies Limited
HCL Technologies Limited is an IT service firm from India that specialises in digital technology and software services. HCL was established in 1976 and is providing a wide range of IT solutions and services such as IT consulting, enterprise transformation, remote infrastructure management, engineering and R & D, BPO. HCL caters to sectors including healthcare, finance, manufacturing, and telecom; it stresses research and value delivery. It uses its extensive network across the globe and its highly developed technology tools to offer innovative solutions that create positive changes in the operations and performance of businesses across the world.
- Wipro Limited
Wipro Limited is a global IT services and products company based in India, which provides IT consulting, digital, cloud, cybersecurity, and business process outsourcing services. Wipro was founded in 1945 and has grown to be a significant actor in the technology sector, with customers spanning across industries including healthcare, finance, retail, manufacturing, among others. It is a company that focuses on being green, being innovative and providing the best-integrated solutions. By utilizing innovative technologies and a worldwide service approach, Wipro fosters the change and optimization of enterprise operations in the contemporary digital environment.
- LTIMindtree Limited
LTIMindtree is an IT consulting and software solutions company situated in India, offering a full range of services that include consulting, cloud, artificial intelligence, analytics and ERP. Other industries it caters to include banking and other financial services, insurance, manufacturing, production and retail business and it is geared towards progressive results. The firm leverages its worldwide network and solutions to improve the client’s operations and growth while fulfilling their digital strategies.
- Allied Digital Services Limited
Allied Digital Services Limited is an information technology solution service provider and managed service company that provides a broad portfolio of solutions, including IT infrastructure management, cloud computing, cybersecurity, and digital workplaces. Allied Digital offers a broad services range for companies of different industries including banking, healthcare, retail, and government sectors to develop and implement efficient and progressive solutions adapted to the current tendencies and assist the clients in gaining operational advantage.
- Dev Information Technology Limited
Dev Information Technology Limited is an IT company based in India that provides services such as software services, consulting, and technology services. It was founded in 1997. It caters to industries including banking, finance, healthcare, and education while striving to ensure that clients attain unique and innovative IT solutions. A commitment to value deliverance and client satisfaction makes the company apply professionalism and embrace technology to satisfy clients’ goals and objectives for business development and optimized operations.
- Tech Mahindra Limited
Tech Mahindra Limited is an IT services company that specializes in business transformation services to enable enterprises to develop new growth strategies in the connected world. Founded in 1986, Tech Mahindra provides a broad spectrum of services such as information technology consulting services, digital transformation, cloud computing and cybersecurity, and business process outsourcing. It is involved in business sectors such as telecommunication, finance, health care, manufacturing, and retail. Also, it offers a customer-oriented approach that offers and implements business solutions based on advanced technologies and a delivery model that is aimed at facilitating global organizations in achieving operational excellence, delivering superior customer experiences, and fostering digital transformation.
- Silicon Rental Solutions Limited
Silicon Rental Solutions Limited is an information technology (IT) infrastructure management and rental company based in Jodhpur, Rajasthan, India. The services offered by the company include computer and other hardware leasing like servers, desktops, and networking equipment, as well as IT support and maintenance. Silicon Rental Solutions helps various industries by providing both affordable and temporary IT solutions for short-term rental as well as recurring rental. Their purpose is to provide efficient, cost-effective, flexible, and robust IT solutions that are more aligned with business objectives to enhance its operational capacity while minimizing investments.
Orient Technologies is poised to make a significant impact with its upcoming IPO set for August 21 to August 23, 2024. With a strategic focus on expanding its cutting-edge IT infrastructure solutions and the launch of new services like Device-as-a-Service (DaaS), the company is well-positioned for future growth. The funds raised will be instrumental in enhancing their technological capabilities and ensuring robust growth in the highly competitive IT sector. Investors looking for opportunities in a technologically adept company would find Orient Technologies an appealing option, given its strong past performance and clear strategic direction. This IPO not only marks a pivotal moment for the company but also for potential investors aiming to align with a forward-thinking IT leader.
