Orient Technologies IPO opens today: GMP jumps 15%; should you subscribe?

Orient Technologies IPO: The initial public offering (IPO) of IT solutions and related services provider Orient Technologies opens for public subscription today. The company seeks to raise Rs 214.76 crores from the public issue. The three-day subscription window of Orient Technologies IPO closes on Friday, August 23, 2024.

The unlisted shares of Orient Technologies are commanding a strong premium on the first day of opening. Orient Technologies shares are trading at a premium of Rs 30 or 14.56 per cent at the upper end of the issue price, indicating positive sentiments for the public issue.

Orient Technologies IPO details

With the initial public offering, Orient Technologies is offering a fresh issue of 5,825,243 shares, aggregating up to Rs 120 crore, and an offer for sale of 4,600,000 equity shares with a face value of Rs 10 apiece. Orient Technologies IPO is available at a price band of Rs 195 - 206 per share and a lot size of 72 shares. Accordingly, investors can bid for a minimum of 72 shares and a maximum of 936 shares or 13 lots for the Orient Technologies IPO. The minimum amount required to bid for the Orient Technologies IPO is Rs 14,832.

The company intends to use the net proceeds from the public issue for the acquisition of office premises at Navi Mumbai, funding capital expenditure requirements, along with the purchase of equipment for setting up a Network Operating Centre (NOC) and Security Operation Centre (SOC) at the Navi Mumbai property. In addition to that, Orient Technologies will also use the remaining proceeds to purchase equipment and devices to offer Device-as-a-Service (DaaS) offerings as well as for general corporate purposes.

Should You Bid for Orient Technologies IPO?

Several noted brokerage firms, including Anand Rathi Research and Geojit, have shared their outlook on the public issue for investors.

Anand Rathi Research - Subscribe

Anand Rathi Research remains positive on Orient Technologies IPO and has recommended a subscribe rating on the public issue. According to the brokerage, “At the upper price band, the company is valued at a P/E of 20.7x with a market cap of Rs 858 crore post-issue of equity shares and a return on net worth of 27.2%. On the valuation front, we believe that the company is fairly priced. Thus, we recommend a ‘Subscribe’ rating to the IPO.”

Geojit - Subscribe

According to a research report from Geojit, Orient Technologies IPO, at the upper price band of Rs 206, is available at a P/E of 20.7x (FY24), which appears to be attractively priced compared to its peers.

“Considering its expansion to other related areas including IT facility management, network operations centre (NOC), cybersecurity, data management, DaaS services, and positive industry tailwinds, we assign a ‘Subscribe’ rating on a short to medium-term basis,” Geojit’s research report noted.

Orient Technologies allotment, listing Date

The basis of allotment of Orient Technologies IPO shares is likely to take place on Monday, August 26, 2024, and the company’s shares are expected to get credited into demat accounts on Tuesday, August 27, 2024.

Orient Technologies shares are scheduled to make their debut on the bourses - BSE and NSE - on Wednesday, August 28, 2024.

About Orient Technologies
 

Orient Technologies (OTL), established in 1997 and headquartered in Mumbai, is an information technology (IT) solutions provider with expertise in developing products and solutions for specialised disciplines across its business verticals