Orient Technologies IPO: Should You Apply? Check Subscription Status, GMP Today
Orient Technologies IPO: The Orient Technologies IPO opened for public subscription on Wednesday, August 21, offering investors an opportunity to invest in a well-established IT solutions provider. The IPO has a price band of ₹195-206 per share and has already received strong interest from the market.
Subscription Status
As of 1:05 PM on the first day of bidding, the IPO has been subscribed 3.61 times, with bids received for 2,63,52,360 shares against 72,97,670 shares on offer. The retail quota has seen a significant response with a 6.12 times subscription, while the non-institutional investors’ category received 2.56 times subscription.
Grey Market Premium (GMP) Today
According to market observers, Orient Technologies Ltd’s unlisted shares are trading at a ₹30 premium in the grey market, indicating a potential 14.56% listing gain based on current market sentiment. It’s important to note that GMP is subject to change based on market conditions.
Analysts’ Recommendations
- Master Capital Service Ltd: The brokerage highlights Orient Technologies’ expertise in IT solutions, including its recent venture into “Device as a Service (DaaS).” They see the company’s expansion plans, including its new branch in Singapore, as positive signs for growth. The firm recommends investing in the IPO for medium to long-term gains.
- Anand Rathi: This brokerage firm also offers a “subscribe” rating, noting that Orient Technologies is engaged in advanced IT solutions and collaborates with major technology partners. They believe the company is fairly valued at a P/E of 20.7x with a market cap of ₹8,580 million post-issue and a return on net worth of 27.2%.
More Details
The IPO consists of a fresh issue of ₹120 crore and an offer for sale (OFS) of up to 46 lakh equity shares, valued at ₹95 crore at the upper price band. The total transaction size aggregates to ₹215 crore. Prominent stakeholders including Ajay Baliram Sawant and Umesh Navnitlal Shah are offloading shares through the OFS.
Proceeds from the IPO will be used to fund capital expenditure requirements, acquire office premises at Navi Mumbai, and cover general corporate expenses. Investors can bid for a minimum of 72 equity shares and in multiples thereof.
Orient Technologies has a diverse client base across industries such as BFSI, IT & ITeS, healthcare, and pharmaceuticals, with notable clients including Coal India, Mazagon Dock, and Jyothy Labs. The company primarily operates in India, with additional operations in Singapore.
The share allotment is expected to be finalized on August 26, with the listing on NSE and BSE scheduled for August 28. Given the strong demand and positive market sentiment, investors may consider subscribing to this IPO.
