Orient Technologies IPO: From financials to key risks, here are 10 things to know from the RHP before you subscribe | Stock Market News

Orient Technologies IPO: The initial Public offering opens for subscription on 21 August 21, 2024 and closes on 23 August, 2024. From Financials to Key risks, here are 10 things to know from the Red Herring Prospectus (RHP) before you subscribe

Here are 10 key things to know from the RHP

1.Orient Technologies IPO: Subscription details –

The initial Public offering opens for subscription on 21 August, 2024 and closes on 23 August, 2024. The pricing range or the lot size for Orient Technologies’ IPO is ₹195 to ₹206 per share. Applications must be made for a minimum lot size of 72 shares. Retail thereby are required to invest a minimum of ₹14,832.

2,Orient Technologies IPO: Objectives of the issue

The book-built IPO of Orient Technologies is valued at ₹214.76 crores. The issue consists of an offer for sales for 0.46 crore shares, valued at ₹94.76 crores, and a fresh issue of 0.58 crore shares, totaling ₹120.00 crores.

The company plans to use the net proceed for purchase of office space at Plutonium Business Park, Trans-Thana Creek Industrial Area, Turbhe MIDC, District Thane, Navi Mumbai, at units nos. 1201, 1202, 1203, and 1204, respectively (together, Navi Mumbai Property);

The other funding requirements for capital expenditures are as follows: i. Equipment purchases for the Network Operating Center (NOC) and Security Operation Center (SOC) setup at the Navi Mumbai property; and ii. Equipment and device purchases for Devise-as-a-Service (DaaS) offering.

General Corporate purposes

3,Orient Technologies- About the company

The company was established in 1997 and is based in Mumbai, Maharashtra. It provides information technology (IT) solutions. It has accumulated substantial experience over the years in producing products and solutions for a number of business areas, including IT Infrastructure, Cloud, IT Enabled Services (IteS), and Data Management Services.

4.: Key Risks

a. Orient Technologies is heavily reliant on top 10 customers, and the loss of such customers or a significant reduction in purchases by such customers will have a material adverse impact on its business.

b. Orient Technologies depend on few Customer Industries for majority of its revenue from operations. Loss of customers in these Customer Industries may result in an adverse effect on its business, revenue from operations and financial conditions.

5. Orient Technologies IPO: Finacials

Orient Technologies Limited’s profit after tax (PAT) increased by 8% and its sales by 12% in the fiscal year that concluded on March 31, 2024, compared to the net profit and sales for the year that ended on March 31, 2023.

6.Orient Technologies IPO: Promoters

Orient Technologies promoters include Ajay Baliram Sawant, Jayesh Manharlal Shah, Umesh Navnitlal Shah and Ujwal Arvind Mhatre .

7.Orient Technologies IPO: Registrars , Book running managers

The Orient Technologies IPO’s book running lead manager is Elara Capital (India) Private Limited, and the issue’s registrar is Link Intime India Private Ltd.

8.Orient Technologies IPO: Allotment and Listing details

On Monday, 26 August, 2024, the allocation for the Orient Technologies IPO is anticipated to be completed. The tentative listing date for the Orient Technologies initial public offering (IPO) is Wednesday, August 28, 2024, on the BSE and NSE.

9 Orient Technologies IPO: Peers

Peers include Dynacons Systems & Solutions, LTIMindtree Limited, HCL Technologies Ltd, Wipro Ltd, Allied Digital Services, Dev Information Technology Limited, Tech Mahindra which have a Price to earninsg ratio of 16.46 times to 37.51 times FY23 earnings, as per the RHP

The Earnings per share stood at ₹10.94 for Orient Technologies.

10. Orient Technologies IPO: GMP

The Grey Market Premium or GMP for Orient Technologies IPO currently stands at 0. It means not premium is currently being assigned to Orient Technologies shares.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions

In a Business Standard advertisement Orient Technologies IPO claimed that the upper end of the price band’s price to earnings ratio for 2024, based on diluted EPS, is 17.46 times, whereas the average PE ratio for industry peer groups is 29.87 times.