Orient Technologies Achieves Strong Stock Market Debut

Orient Technologies made a notable entry into the stock market on August 28, 2024, with its shares listed at ₹290 on the Bombay Stock Exchange (BSE), reflecting a substantial premium of 40.78% above the issue price of ₹206 per share.

The initial public offering (IPO) of Orient Technologies received robust interest, evidenced by an overall subscription rate of 151.71 times. The retail investors’ portion was booked at 66.87 times, while the non-institutional investors subscribed at 300.60 times. Qualified institutional buyers showed significant enthusiasm, with their portion being subscribed at 189.90 times.

As trading commenced, shares of Orient Technologies experienced a surge, hitting the upper circuit limit of 5% at ₹304.45 on the BSE. This reflected strong buyer interest, as data showed an absence of sell orders in the initial stages of trading.

Analysts have noted that the company is poised for sustainable growth, supported by a healthy compound annual growth rate (CAGR) across revenue, EBITDA, and profit after tax (PAT) during the FY22-24 period, estimated at 13.6%, 11.3%, and 9.8%, respectively.

Despite the positive reception, market observers have urged caution, citing the intense competition within the IT solutions sector and the potential risks associated with market corrections. Investors are encouraged to pay attention to the fundamentals as the market evolves.

While the successful listing indicates strong investor confidence in Orient Technologies’ prospects, the company plans to leverage the proceeds from the IPO for various initiatives, including capital expenditure for establishing a Network Operating Centre and a Security Operation Centre, as well as acquiring additional office space.