Orient Technologies IPO: Here's All You Need To Know
The price band for the IPO offering is set at Rs 195–206 per share. The IPO issue closes on Aug. 23.
Orient Technologies Ltd. aims to raise Rs 241.76 crore from an initial public offering which will open for subscription on Aug. 21. The IPO will consists of a combination of fresh issue and an offer-for-sale from existing shareholders.
The public issue consists of a fresh issue of shares worth Rs 120 crore and an offer-for-sale component of Rs 94.76 crore, according to the red herring prospectus. The minimum lot size for bidding will be 72 shares, with further bids to be made in multiples. Ajay Baliram Sawant, Umesh Navnitlal Shah, Ujwal Arvind Mhatre, and Jayesh Manharlal Shah will be among the promoters selling shareholders.
The price band for the offering is set at Rs 195–206 per share. The IPO issue closes on Aug. 23.
Issue Details
Opens: Aug. 21
Closes: Aug. 23
Price band: Rs 195–206
Anchor bidding open for a day on Aug. 20
Minimum lot size for bidding: 72 shares
Issue size: Rs 241.76 crore
Use of Proceeds
To fund capital requirements: Rs 79.65 crore
For purchase of office premises: Rs 10.35 crore
Balance to be used for general corporate purposes.
About Orient Technologies
Founded in 1997 and headquartered in Mumbai, Maharashtra, the firm specialises in providing information technology solutions. Orient Technologies has expertise in creating products and solutions for specialised disciplines across IT infrastructure, IT enabled services, and cloud and data management services.
Financials
The company's revenue from operation rose to Rs 535.10 crore in fiscal 2022-23 from Rs 467.44 crore in fiscal 2021–22.
During the same period, profit rose to Rs 38.30 crore from Rs 33.49 crore.
Key Risks
They have heavy reliance on top 10 customers, loss of such customers or a significant reduction in purchases by such customers may have a material adverse impact on the business.
Employee benefit expense is one of the larger components of fixed operating costs. An increase in employee benefit expense could reduce profitability
A significant proportion of orders are from government which are awarded to the lowest bidder. Performance could be adversely affected if the company is not able to successfully bid for these contracts or required to lower the bid value.
Technology is a competitive industry. Any inability to compete effectively may lead to a lower market share or reduced operating margins.
The degree certificates pertaining to the educational qualifications of the Promoter who is also the Whole Time Directors of our Company, Ujwal Arvind Mhatre is not traceable.
