Orient Technologies Lists With 40% Premium
During its subscription phase, the final subscription stands at 154 times, while retail category pours Rs 5,181 crore with nearly 70 times subscription rate
The initial public offering (IPO) of Orient Technologies debuted with over 40 per cent premium on the bourses in the Wednesday trading session. The IPO listed at Rs 288 with 40 per cent premium on the National Stock Exchange (NSE) against the issue price of Rs 206 per share.
The Rs 214.76 crore IPO consisted of fresh issues of up to Rs 120 crore and an offer-for-sale (OFS) worth Rs 94.76 crore by promoter and investor selling shareholders.
The price band for the issue is fixed at Rs 195 to 206 per equity share.
During its subscription phase, the final subscription stood at 154 times. Retail category poured Rs 5,181 crore with nearly 70 times subscription rate. Qualified Institutions subscribed to the issue 188 times.
Elara Capital was the book running lead manager and Link Intime India was the registrar to the offer.
Expert’s View
“As we advance, Orient Technologies' financial performance is likely to be driven by expanding its product and services portfolio, increasing its global footprint, long-term relationships with customers and collaboration with technology partners, thereby heightening its ability to design and innovate products and provide solutions tailored to specific customer requirements. Hence, we advise the market participants to hold the shares from a medium to long-term perspective,” said Prathamesh P Masdekar, Research Analyst, StoxBox.
IPO Objectives
The net proceeds of Rs 120 crore from the fresh issue will be utilised towards acquisition of office premises.
Additionally the funds will also be used for funding capital expenditure requirements for purchase of equipment and general corporate purposes.
Moreover, the firm will also get benefits on listing in the public market which will enhance the brand’s visibility and provide liquidity to the shareholders.
Firm’s Financials
The firm registered revenue of Rs 606.86 crore in FY24, compared to Rs 542 crore in FY23.
Moreover, the firm’s profit after tax (PAT) increased to Rs 41.45 crore in FY24 compared to Rs 38.3 crore in FY23.
Overall, revenue increased by 12 per cent, whereas PAT rose 8 per cent.
