Orient Technologies IPO - Investment Rationale, Issue Details, Peer Comparison, Risks And More: Anand Rathi

Anand Rathi Report

Orient Technologies Ltd. will launch its initial public offering tomorrow 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 94.76 crore.

Objects of fresh Issue

• Acquisition of office premise at Navi Mumbai.

• Funding the Capital Expenditure requirements.

• General corporate purposes.

Valuation & Outlook

Orient Technologies is engaged in IT solutions and related services providing across the business verticals. The company's business operations involves technologically advanced solutions for which the company collaborates with a wide range of technology partners including Dell International Services India Private Ltd. and Fortinet, Inc. and Nutanix Netherlands B.V.

At the upper price band company is valuing at P/E of 20.7 times with a market cap of Rs 8,580 million post issue of equity shares and 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.

Click on the attachment to read the full IPO report:

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