Orient Technologies IPO - An Emerging IT Infrastructure Provider: Geojit

Geojit Research Report

Orient Technologies Ltd. launched its initial public offering today and the offer closes for subscription on Aug. 23. The company has fixed the price band in the range of Rs 195–206 per share. The minimum lot size for bidding will be 72 shares, with further bids to be made in multiples.

The Rs 241.76 crore IPO comprises of a fresh issue of shares worth Rs 120 crore and an offer-for-sale component of Rs 94.8 crore.

Purpose of IPO

The objective of the offer is to utilize the net proceeds for acquisition of office premise at Navi Mumbai ( Rs 10.3 crore), Funding for capital expenditure requirements (Rs 80 crore) and other general corporate purpose.

About the company

Orient Technologies, established in 1997, headquartered in Mumbai, is an information technology solutions provider with expertise in developing products and solutions for specialised disciplines across its business verticals. Orient Technologies provides customised offerings to its clients by collaborating with wide range of technology partners including DELL, Fortinet and Nutanix.

The business verticals include IT infrastructure comprising data center solutions and end-user computing (contributes to ~52% of topline in FY24); ITenabled services (contributes to ~22% of topline in FY24 ), and cloud and data management services (contributes to ~26% of topline in FY24).

Orient Technologies serves leading public and private sector entities across diverse end use industries such as BFSI, IT, IteS, healthcare/ pharmaceutical.

Key Risks

• Orient Technologies operates in highly competitive industry.

• Orient Technologies is heavily reliant on its top 10 customers. (accounts for ~38% of FY24 topline).

• The trade receivables grew significantly at ~33%YoY in FY24, thereby receivables days rose to 83 in FY24 from 75 in FY22.

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