Orient Technologies Limited is coming up with an IPO worth INR 214.76 crores, consisting of a fresh issue of shares worth INR 120 crores and an offer to sell 0.46 crore shares. The company aims to acquire office premises, fund capital expenditures, and support general corporate purposes.
Orient Technologies IPO – Important Dates
| Orient Technologies Limited IPO Date | August 21, 2024 to August 23, 2024 |
| Orient Technologies Limited IPO Listing Date | August 28, 2024 |
| Orient Technologies Limited IPO Price | INR 195 – 206 per share |
| Orient Technologies Limited IPO Lot Size | 72 Shares |
| Orient Technologies Limited IPO Total Issue Size | INR 214.76 crores |
| Orient Technologies Limited IPO Basis of Allotment | August 26, 2024 |
| Orient Technologies Limited IPO Initiation of Refunds | August 27, 2024 |
| Orient Technologies Limited IPO Credit of Shares to Demat | August 27, 2024 |
| Orient Technologies Limited IPO Issue Type | Book Built Issue IPO |
| Orient Technologies Limited IPO Listing At | BSE, NSE |
Orient Technologies Limited IPO – Company Profile
Orient Technologies Limited, a fast-growing IT solutions provider headquartered in Mumbai since 1997, specializes in IT infrastructure, IT-enabled services, and cloud/data management services. It offers data centre solutions, managed services, and cloud migration expertise.
Collaborating with technology partners like Dell, Fortinet, and Nutanix, the business offers technologically advanced solutions, tailoring products and services to meet specific customer needs through innovative design and customization.
Customizing solutions to specific customer needs has attracted prominent clients in the BFSI, IT, and healthcare industries. These clients focus on nurturing long-term relationships, continuously engaging to enhance services, and exploring new opportunities.
Orient Technologies Ltd IPO Fundamental Analysis
Orient Technologies Limited’s financial analysis reveals a mixed performance. Revenue increased year-over-year, but profits, EPS, and RoNW declined, raising investor concerns despite asset growth and improved liquidity. Inventory turnover also slowed significantly.
- Revenue Trend: The revenue increased from ₹4,674.43 million in March 2022 to ₹5,351.02 million in March 2023. The revenue for the current year’s 6-month period ending September 2023 is INR 2,663.11 million.
- Equity and Liabilities: Both equity and liabilities have shown a consistent increase over the periods, reflecting potential growth and expansion.
- Profitability: The profit after tax (PAT) has decreased from ₹334.93 million in March 2022 to ₹163.95 million by September 2023.
- Earnings per Share (EPS): The diluted EPS has also decreased from ₹9.57 in March 2022 to ₹4.68 by September 2023, reflecting lower earnings per share for investors.
- Return on Net Worth (RoNW): The RoNW has reduced from 35.59% to 11.30%, indicating a decrease in the company’s ability to generate returns on shareholder equity.
- Financial Position: Total assets have increased, suggesting potential business growth. However, the current ratio has increased, indicating strengthening liquidity and potential challenges in meeting short-term obligations.
- Inventory Turnover Ratio: There’s a significant decrease in the Inventory Turnover Ratio, which might suggest slower sales or inefficient inventory management.
Orient Technologies IPO Financial Analysis
| Particular | As of 31 March 2022 | As of 31 March 2023 | As of 30 September 2023 |
| Revenue (₹ in Million) | 4,674.43 | 5,351.02 | 2,663.11 |
| Equity (₹ in Million) | 941.05 | 1,288.24 | 1,450.44 |
| Expenses (₹ in Million) | 4,245.69 | 4,900.55 | 2,464.00 |
| Profit and Loss After Tax (₹ in Million) | 334.93 | 382.98 | 163.95 |
| RoNW (%) | 35.59 | 29.73 | 11.30 |
| NAV per Equity Share (₹) | 53.77 | 73.61 | 41.44 |
| Diluted EPS only (₹) | 9.57 | 10.94 | 4.68 |
| Total Assets (in millions) | 1,930.34 | 2,399.40 | 2,617.00 |
| Total Liabilities (in millions) | 989.29 | 1,111.16 | 1,166.56 |
| Current Ratio (in time) | 1.90 | 2.21 | 2.28 |
| Inventory Turnover Ratio | 42.27 | 39.77 | 18.30 |
Orient Technologies Limited IPO Peer Comparison
Orient Technologies Limited operates as a standalone entity among industry peers, including more prominent players like HCL Technologies and Wipro. Competitors range widely in market size, earnings, and profitability across consolidated and standalone structures.
| Company | Type of Financial | Total Income (₹ in million) | Face Value per Equity Share (₹) | P/E | EPS (Basic) (₹) | EPS (Diluted) (₹) | RoNW (%) | NAV per Equity Share (Basic) (₹) |
| Orient Technologies Limited | Standalone | 5,420.09 | 10 | NA | 10.94 | 10.94 | 29.73 | 73.61 |
| Dynacons Systems & Solutions Limited | Consolidated | 8,067.65 | 10 | 27.17 | 27.78 | 27.70 | 31.93 | 82.53 |
| HCL Technologies Limited | Consolidated | 1,028,140 | 2 | 30.44 | 54.85 | 54.79 | 22.70 | 241.00 |
| Wipro Limited | Consolidated | 927,533 | 2 | 26.26 | 20.73 | 20.68 | 14.62 | 141.63 |
| LTIMindtree Limited | Consolidated | 337,399 | 1 | 37.51 | 149.07 | 148.83 | 26.57 | 561.15 |
| Allied Digital Services Limited | Consolidated | 6,657.30 | 5 | 16.67 | 9.87 | 9.57 | 1.21 | 104.18 |
| Dev Information Technology Limited | Consolidated | 1,311.23 | 5 | 36.34 | 4.08 | 4.06 | 21.57 | 18.81 |
| Tech Mahindra Limited | Consolidated | 542,552 | 5 | 23.90 | 54.76 | 54.54 | 17.11 | 291.48 |
| Silicon Rental Solutions Limited | Standalone | 363.49 | 10 | 16.46 | 12.06 | 12.06 | 20.95 | 49.59 |
Orient Technologies Ltd IPO Objective
The main objective of Orient Technologies Limited is to acquire office premises in Navi Mumbai, fund capital expenditures for establishing a Network Operating Centre and Security Operation Centre, and launch Device-as-a-Service offerings.
- Funding towards the acquisition of office premises: The company intends to utilize INR 10.35 crores from the Net Proceeds to purchase the Navi Mumbai Property, part of a larger transaction worth INR 16.96 crores, with payments due by June 2024.
- Funding their Capital Expenditure requirements:
- Purchase of equipment for setting up of NOC and SOC at Navi Mumbai Property: The company plans to allocate INR 7.28 crores from the Net Proceeds for purchasing equipment and INR 2.80 crores for setting up the Network Operating Centre and Security Operation Centre.
- Purchase of equipment and devices to offer DaaS, renting/operating lease offering as a service by their company: Based on detailed quotations from Ingram Micro India Private Limited, the company aims to utilize INR 69.57 crores for purchasing equipment and devices to offer Device-as-a-Service, including printers, servers, notebooks, storage solutions, and switches.
- General Corporate Purposes: The company plans to use the net proceeds for general corporate purposes, including acquiring office spaces, strategic initiatives, funding growth opportunities, strengthening marketing, brand building, ongoing contingencies, further capital expenditure, and other purposes.
Orient Technologies IPO Risks And Challenges
Orient Technologies Limited’s risk includes significant financial impact from losing top customers due to economic hardship or disruptions, adverse conditions in key industries affecting revenue, and reliance on few vendors without long-term contracts, impacting operations and financial stability.
- Dependence on the top 10 customers means the company’s financial stability could be significantly impacted by losing any of them due to economic hardship, mergers, or operational disruptions, affecting overall business and cash flows.
- The company’s success relies on prominent customers across various industries. Adverse conditions in these industries, such as economic downturns, competition, or shifts to in-house solutions, could significantly impact revenue and business prospects.
- Dependence on a few critical vendors for IT hardware, software, and cloud space poses risks. Without long-term contracts, losing these vendors or facing unfavourable terms could adversely affect revenue, operations, and financial condition.
Orient Technologies Ltd IPO – Industry & Market Potential
The global IT sector, driven by rapid innovation and digital transformation, grew 4.8% CAGR from CY 2019 to CY 2022. Projected to expand at 6.5-8.5% CAGR, it is expected to reach $1,050–1,100 billion by CY2026.
In Fiscal 2023, IT-enabled Services exports showed resilience, with solid performance from the US and EU despite global slowdowns. Increased adoption of analytics and RPA is driving forecasted growth of 6-8% CAGR through Fiscal 2027.
India’s digital payments increased from ₹140 trillion in FY17 to ₹606 trillion in FY23, with UPI transactions rising from ₹6.2 trillion to ₹30.7 trillion. Digital services, including AI and cloud computing, are projected to grow through CY2027.
Orient Technologies Limited IPO – Type of Offer
Orient Technologies Limited plans a fresh issue of shares, seeking INR 120 crores to acquire office premises, fund capital expenditures, and support general corporate needs. Additionally, the company proposes an offer for sale, intending to sell 0.46 crore existing shares.
- Fresh Issue: The company will issue new shares to raise capital, aiming to collect INR 120 crores. The company intends to utilize the proceeds from the fresh issue to acquire office premises, fund capital expenditures, and support general corporate purposes.
- Offer for sale: Orient Technologies Limited is offering to sell 0.46 crore existing shares. The following are the details of the existing shareholders who are also the promoters selling the shares:
| Name of the promoter selling shareholder | Maximum number of offered shares for sale (in millions) |
| Ajay Baliram Sawant | 1,150,000 |
| Umesh Navnitlal Shah | 1,150,000 |
| Ujwal Arvind Mhatre | 1,150,000 |
| Jayesh Manharlal Shah | 1,150,000 |
Orient Technologies IPO Offer Size
The offer size of Orient Technologies Limited is INR 214.76 crores, consisting of a fresh of shares worth INR 120 crores and an offer to sell 0.46 crore shares. The company seeks funds to acquire office premises, fund capital expenditures, and support general corporate needs.
Orient Technologies Limited IPO Allotment Structure
Orient Technologies Limited’s allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for Retail Individual Investors (RII) according to SEBI regulations.
● Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.
● Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.
● Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs.
How to apply for Orient Technologies IPO?
To apply for the Orient Technologies Limited IPO through Alice Blue, follow these steps:
Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.
- Check for IPO Details: Once your account is active, you can check for the Orient Technologies Limited IPO details in the IPO section of the Alice Blue platform.
- Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
- Submit the Application: Confirm all your details and submit your application.
You can apply for the Orient Technologies Limited IPO at Alice Blue in just a few clicks!
Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.
Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.
How do you check Orient Technologies IPO Allotment Status?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
- Log in to your Alice Blue Account: You can do this through the Alice Blue website or the trading app.
- Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
- Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
- Select the Orient Technologies Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Orient Technologies Limited IPO.
- Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.
If you face any issues, we request you to reach out to our customer support team at Alice Blue for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the Orient Technologies Limited IPO:
● Registrar’s Website: Visit the website of Link Intime India Private Limited, the registrar of the Orient Technologies Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
● BSE NSE: You can also check the allotment status on the official websites of the Bombay Stock Exchange (BSE) National Stock Exchange (NSE). You would need your application number and PAN to check the status.
Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.
Orient Technologies Ltd IPO Offer Registrar
The registrar for the Orient Technologies Limited IPO is Link Intime India Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
Link Intime India Private Limited
C- 101, 1st Floor, 247 Park, L.B.S Marg,
Vikhroli (West), Mumbai – 400083,
Maharashtra, India
Telephone: +91 810 811 4949,
Email: [email protected]
Website: www.linkintime.co.in
Orient Technologies IPO – FAQs
1. What is the allotment date of the Orient Technologies IPO?
The allotment date of the Orient Technologies Limited IPO is August 26, 2024.
2. What is the price band of the Orient Technologies IPO?
The price band of the issue is INR 195 – 206 per share.
3. What is the size of the Orient Technologies IPO?
The offer size of Orient Technologies Limited is INR 214.76 crores, consisting of a fresh of shares worth INR 120 crores and an offer to sell 0.46 crore shares. The company seeks funds to acquire office premises, fund capital expenditures, and support general corporate needs.
4. What is the listing date of the Orient Technologies IPO?
The listing date of Orient Technologies Limited’s IPO is August 28, 2024.
