Orient Technologies To Invest Rs 120 Crore From IPO Proceeds In Security Operating Centre

Orient Technologies Ltd. plans to invest Rs 120 crore raised via its initial public offering in setting up a security operating centre, which will enable the company to function at a global scale.

Giving a roadmap of the investments after the successful IPO, the Mumbai-based information technology firm’s Chairman and Managing Director Ajay Baliram Sawant told NDTV Profit that the company will be able to operate in the global space through its SOC.

“The entire proceeds of the issue are in two forms—one is the fresh issue of Rs 120 crore, and OFS of 46 lakh shares. Rs 120 crore we are going to utilise in two ways, we are setting up a Security Operating Centre, so we are going to buy a lot of equipment for the SOC. With the SOC, we will be able to operate in the entire global space,” Sawant said.

He added that the company will also utilise the proceeds generated from the fresh issue of shares for offering the device as a service.

Sawant elaborated that most customers incur capital expenditure for using machines. Through the company’s DaaS service, they will be able to purchase machines on a consumption-based model.

“It will be devices, plus our services on top of it, through which we will be able to get more and more consumption for the customers and more and more customers,” Sawant told NDTV Profit.

Orient Technologies made a strong debut on the stock exchanges on Wednesday, as its shares listed at Rs 290 apiece, at nearly 41% premium on the BSE. The stock listed on the NSE at Rs 288 apiece, almost 40% higher than the offer price of Rs 206 apiece.

Shares of Orient Technologies surged nearly 5% to hit the upper circuit limit of Rs 304.45 apiece on the BSE, after listing at a premium.

The IPO, worth Rs 214.76 crore, was a book-building offer comprising fresh issue of 58 lakh shares, aggregating to Rs 120 crore, along with an offer-for-sale of 46 lakh shares aimed at raising Rs 94.76 crore. The mainboard IPO was open for subscription from Aug. 21 to Aug. 23.

Orient Technologies Ltd., incorporated in July 1997, is a IT solutions provider across verticals such as IT Infrastructure, IT enabled services, and cloud and data management services.