Orient Technologies IPO Launches Today

The much-anticipated initial public offering (IPO) of Orient Technologies, a company specializing in IT services, opens for public subscription today. The company aims to raise ₹214.76 crores through this public issue, which will run until Friday, August 23, 2024.

On its first day, shares of Orient Technologies are already showing strong demand in the grey market, trading at a premium of ₹30, or around 14.56% above the upper issue price. This positive trend indicates favorable market sentiment toward the IPO.

Orient Technologies is releasing 5,825,243 new shares and offering an additional 4,600,000 shares through an offer for sale. Investors can buy shares within a price band of ₹195 to ₹206, with a minimum purchase of 72 shares, requiring an investment of at least ₹14,832.

The funds raised will be used for various purposes, including acquiring office space in Navi Mumbai and investing in key technology setups like a Network Operating Centre (NOC) and Security Operation Centre (SOC). Additionally, Orient Technologies plans to allocate some of the proceeds for general corporate expenses.

Brokerage firms are optimistic about the IPO. Anand Rathi Research recommends subscribing to the IPO, noting that at the upper price band, the company’s valuation looks fair. They comment on its projected P/E ratio of 20.7x and a return on net worth of 27.2%.

Geojit also shares a positive outlook. They highlight the company’s competitive pricing in the industry and its expansion plans into areas such as IT facility management and cybersecurity, suggesting that the IPO is appealing for short to medium-term investment.

Share allotment for the IPO is expected on Monday, August 26, 2024, while shares will likely debut on the stock exchanges, BSE and NSE, on August 28, 2024. This is a significant opportunity for investors looking to tap into the growing IT solutions sector.