Orient Technologies IPO booked 151.71 times on last bidding day, NIIs steal the show; check GMP, subscription status

Orient Technologies IPO Subscription Status: Retail and non-institutional investors (NII) have responded to the Orient Technologies IPO with remarkable vigour in the first two days. The issue appears to be maintaining its pace as the bidding closes today, Friday, August 23.

Orient Technologies IPO subscription status was 151.71 times, on the last bidding day, as per BSE data.

The initial share sale got bids for 1,13,02,20,648 shares against 74,49,846 shares on offer, according to BSE data.

The portion for retail investors received 66.87 times subscription while the quota for non-institutional investors got subscribed 300.60 times. The qualified institutional buyers (QIBs) part is booked 189.90 times.

The second day of subscription for Orient Technologies IPO saw a 16.96 times over subscription on Thursday, as per BSE data. Retail individual investors' portion was oversubscribed by 24.49 times, while non-institutional investors' part received a 20.97 times subscription. The quota for Qualified Institutional Buyers (QIBs) received a subscription of 16%.

The public issue saw a subscription of 6.65 times on the first bidding day. The retail portion of the book build issue was oversubscribed at 10.50 times. The NII segment received a subscription of 6.17 times, and the QIB portion was subscribed at 2%, according to BSE data.

The public subscription for the initial share sale of the information technology solutions provider will end on Friday, August 23.

Orient Technologies, an IT solutions provider situated in Mumbai, secured ₹64.43 crores from anchor investors before its initial public offering. Orient Technologies IPO price band is established at ₹195 to ₹206 per equity share, each having a face value of ₹10.

Orient Technologies' public offering has designated 50% of the shares for QIB, assigned 15% for NII, and earmarked 35% of the offer for retail investors.

Established in 1997, the company focuses on offering information technology (IT) solutions. The company has honed its skills in IT Infrastructure, IT Enabled Services (IteS), Cloud, and Data Management Services over time to provide products and solutions.

Orient Technologies IPO Review

SBICAP Securities Ltd

The brokerage states that the firm is priced at an upper price band FY24 P/E multiple of 20.7x. With a respectable CAGR of 13.6%/11.3%/9.8% in Revenue/EBITDA/PAT for the FY22–24 timeframe, the company's fundamentals are solid. The firm will see consistent growth because to its wide range of end-user industries, extensive product and service offerings, and technological partnerships with major competitors. Nonetheless, they think the corporation must contend with fierce competition in the fragmented market. The brokerage advises long-term investors to subscribe to the issue.

Arihant Capital Markets Ltd

The brokerage said that by utilising its broad experience and proven track record, the firm is well-positioned to capitalise on areas where demand for sophisticated IT services is expanding. Its broad customer base, in-depth knowledge of cutting-edge technologies, and strategic partnerships with top technological companies enhance its capacity to satisfy a variety of client needs and seize newly developing international market possibilities. Based on an FY24 EPS of ₹9.95, the issue is valued at a P/E ratio of 20.70x at the upper range of ₹206. For this issue, we advise a “Subscribe for Long Term.”

Orient Technologies IPO details

Orient Technologies IPO, which is worth ₹214.76 crore, comprises a fresh issue of ₹120 crore, and an offer-for-sale (OFS) of 46 lakh equity shares by the promoters.

Ajay Baliram Sawant, Umesh Navnitlal Shah, Ujwal Arvind Mhatre, and Jayesh Manharlal Shah are the ones offloadingshares in the OFS.

The company plans to use the net proceeds for general company purposes, including capital expenditure requirements, and the purchase of an office building in Navi Mumbai.

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.

Orient Technologies IPO GMP today

Orient Technologies IPO grey market price is +70. This indicates Orient Technologies share price were trading at a premium of ₹70 in the grey market, according to investorgain.com.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Orient Technologies share price was indicated at ₹276 apiece, which is 33.98% higher than the IPO price of ₹206.

Today's IPO GMP is showing an upward trend based on the grey market activities of the last 15 sessions, indicating a strong listing. According to analysts at investorgain.com, the GMP has ranged from a low of ₹0 to a high of ₹70.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

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