The initial public offering (IPO) of Orient Technologies Ltd, an IT solutions provider based in Mumbai, opens for public subscription today, Wednesday, August 21, and will close on Friday, August 23. Before the IPO, the company raised ₹64.43 crores from anchor investors. The IPO price band is set between ₹195 and ₹206 per equity share with a face value of ₹10.
The IPO has allocated 50% of the shares for qualified institutional buyers (QIBs), 15% for non-institutional investors (NIIs), and 35% for retail investors.
The share allocation for the IPO is expected to be finalized by Monday, August 26. Refunds will begin on Tuesday, August 27, with shares being credited to the allottees’ demat accounts on the same day. Orient Technologies is expected to list its shares on the BSE and NSE on Monday, January 29.
Founded in 1997, Orient Technologies specializes in IT infrastructure, IT-enabled services (IteS), cloud, and data management services. The company’s price-to-earnings (P/E) ratio, based on its diluted EPS for 2024, stands at 17.46 times at the upper end of the price band, compared to an average industry peer group P/E ratio of 29.87 times, as reported by Business Standard.
For comparison, the P/E ratios of the company’s listed peers are as follows: Dynacons Systems & Solutions Ltd at 29.47, HCL Technologies Ltd at 26.93, Wipro Ltd at 23.39, LTIMindtree Ltd at 34.56, Allied Digital Services Ltd at 26.05, Dev Information Technology Ltd at 29.01, Tech Mahindra Ltd at 55.17, and Silicon Rental Solutions Ltd at 14.41.
IPO Details
The Orient Technologies IPO, valued at ₹214.76 crore, includes a fresh issue of ₹120 crore and an offer-for-sale (OFS) of 46 lakh equity shares by the promoters Ajay Baliram Sawant, Umesh Navnitlal Shah, Ujwal Arvind Mhatre, and Jayesh Manharlal Shah. The net proceeds will be used for general corporate purposes, including capital expenditure and purchasing an office building in Navi Mumbai.
Elara Capital (India) Private Limited is the book-running lead manager for the issue, and Link Intime India Private Ltd is the registrar.
Grey Market Premium
The grey market premium (GMP) for Orient Technologies IPO is currently at +₹30, indicating that shares are trading at a ₹30 premium over the issue price in the grey market. Considering the upper end of the price band, the estimated listing price of Orient Technologies shares is expected to be around ₹236 apiece, 14.56% higher than the IPO price of ₹206. The upward trend in GMP over the last 13 sessions suggests a strong listing.
