Orient Technologies Limited IPO: Date, Price, GMP, Review, and Details

Orient Technologies Limited, a Mumbai-based IT solutions provider, is set to launch its Initial Public Offering (IPO) from August 21 to August 23, 2024. This IPO marks a significant milestone for Orient as it seeks to raise capital through a fresh issue of shares aggregating up to ₹120.00 crore, along with an offer for sale of 4,600,000 shares.

Orient’s IPO presents an opportunity for investors to participate in India’s growing IT sector. Let’s look at the Orient Technologies IPO and analyse whether you should apply for it or not.

 

About Orient Technologies Pvt. Ltd.

Founded in mid-1997, Orient Technologies Limited has emerged as a dynamic IT solutions provider based in Mumbai. The company has developed specialised expertise in several key areas within the technology sector.

Orient’s core offerings span three main domains:

• IT Infrastructure: Focusing on data centre solutions and end-user computing systems.
• IT-Enabled Services (ITeS): Encompassing managed services, multi-vendor support, IT facility management, network operations centre services, security solutions, and renewal services.
• Cloud and Data Management: Specialising in transitioning workloads from traditional data centres to cloud environments.

A broad range of clients from the financial, healthcare, and governmental sectors have been drawn to the firm because of its capacity to provide custom solutions. Bluechip Corporate Investment Centre, Tradebulls Securities, and other institutions, including Vasai Janata Sahakari Bank and Vasai Vikas Sahakari Bank, are among the notable clients. Major enterprises such as D’Décor Exports, Mazagon Dock Shipbuilders, and Coal India are also catered to by Orient.

Orient Technologies has earned multiple industry certifications, demonstrating its commitment to quality and security. These include ISO certifications for information security management, IT service management, and quality management systems. The company has also achieved CMMI Maturity Level 3 certification.

With its headquarters in Mumbai, Orient has established a presence across India, with offices in key cities such as Navi Mumbai, Pune, Ahmedabad, New Delhi, Bengaluru, and Chennai. This geographical spread enables the company to serve clients efficiently across the country.

The company’s growth trajectory and diverse portfolio of services position it as a significant player in India’s evolving IT landscape, catering to the technological needs of both public and private sector entities.

Also read: Brace Port Logistics IPO: Opportunity or Risk?

Orient Technologies IPO details

Orient Technologies IPO Date	August 21 to August 23, 2024
Listing Date	August 28, 2024
Face Value	₹10 per share
Price	₹195 to ₹206 per share
Lot Size	72 Shares
Total Issue Size	10,425,243 shares (up to ₹0.00 Cr)
Fresh Issue	5,825,243 shares (up to ₹120.00 Cr)
Offer for Sale	4,600,000 shares of ₹10
Issue Type	Book Built Issue IPO

For more information, refer to Orient Technologies IPO RHP.

Orient Technologies Financials

	30 Sep 2023	31 Mar 2023	31 Mar 2022	31 Mar 2021
Assets (₹ cr.)	238.45	215.25	176.32	112.45
Revenue(₹ cr.)	268.17	542.01	469.12	248.96
Profit After Tax (₹ cr.)	16.40	38.30	33.49	0.13
Net Worth (₹ cr.)	145.04	128.82	94.11	61.29
Total Borrowing (₹ cr.)	6.58	12.86	2.28	9.22

Orient Technologies Limited IPO objectives

Orient Technologies Limited has outlined a strategic plan for utilising the net proceeds from its initial public offering (IPO). The objectives of the IPO are:

Property Acquisition in Navi Mumbai: The company intends to purchase office space in Navi Mumbai, specifically four units (1201, 1202, 1203, and 1204) located in the Plutonium Business Park. This business park is situated in the Trans-Thana Creek Industrial Area, within the Turbhe MIDC zone of Thane district. This acquisition aims to expand Orient’s physical presence in a key business area, potentially improving its operational capacity and client accessibility.

Investment in Technological Infrastructure: The company plans to allocate funds for two significant capital expenditure projects: 

• Establishment of Advanced Operational Centers: Orient will set up a Network Operating Centre (NOC) and a Security Operation Centre (SOC) at the newly acquired Navi Mumbai property. These centres are crucial for monitoring and managing network performance, security, and the overall IT infrastructure.
• Device-as-a-Service (DaaS) Initiative: The company will purchase equipment and devices to launch a Device-as-a-Service offering. DaaS is an innovative model where businesses can lease hardware and associated management services on a subscription basis. This move indicates Orient’s intention to diversify its revenue streams and adapt to evolving market demands for flexible IT solutions.

General Corporate Purposes: A portion of the proceeds will be reserved for general corporate use. This flexible allocation allows Orient to address unforeseen business opportunities, meet working capital requirements, or invest in other areas that may arise in the course of their operations. 

Also read: Initial Public Offering (IPO): Types, Benefits, and Upcoming IPOs in 2024

Should you apply for the Orient Technologies Limited IPO?

Strengths

• Comprehensive IT Solutions Portfolio:

Orient Technologies excels in offering a diverse range of IT products and services. Their business is strategically divided into three main verticals: IT Infrastructure, IT-Enabled Services (ITeS), and Cloud and Data Management Services. This broad spectrum allows them to cater to various client needs and adapt to changing market demands.

• Consistent Financial Growth:

Orient’s financial performance from March 2021 to September 2023 shows consistent growth. The company more than doubled its asset base, increasing from ₹112.45 crore to ₹238.45 crore. Revenue surged impressively, jumping from ₹248.96 crore in FY2021 to ₹542.01 crore in FY2023, demonstrating robust market demand for Orient’s services. 

Most strikingly, the company transformed its profitability, with Profit After Tax soaring from a modest ₹0.13 crore in FY2021 to an impressive ₹38.30 crore in FY2023. 

The company’s net worth has grown consistently, more than doubling from ₹61.29 crore in FY2021 to ₹145.04 crore by September 2023. This substantial increase reflects Orient’s ability to reinvest profits and build shareholder value. At the same time, the company has maintained a conservative approach to debt. Orient reduced its total borrowings from ₹12.86 crore in March 2023 to just ₹6.58 crore by September 2023.

Weaknesses

• Customer Concentration:

The company heavily relies on its top ten customers for a substantial portion of its revenue each year. While these specific customers may change annually, Orient’s financial performance remains closely tied to a small group of major clients. This concentration exposes the company to potential volatility if any of these key customers reduce their business or switch to competitors.

• Vendor Dependency:

Orient operates without long-term contracts with its vendors, instead relying on purchase orders for product procurement. This approach, while flexible, introduces uncertainty into the company’s supply chain. 

Interested in the Orient Technologie IPO? Apply here.

Dhanush provides an efficient way to apply and offers expert analysis, which could be beneficial for those looking to invest in this new stock offering. Remember to carefully evaluate the opportunity and consider how it aligns with your financial objectives before committing to any investment.

Disclaimer: As with any investment decision, it’s crucial to conduct thorough research, consider your personal financial goals and risk tolerance, and potentially consult with a financial advisor before participating in this or any IPO.