| Price | Lot Size | Issue Date | Issue Size |
|---|---|---|---|
| ₹ 195 to ₹ 206 | 72 | 21st Aug, 2024 – 23rd Aug, 2024 | ₹214.76 Cr |
About Orient Technologies Ltd IPO
Orient Technologies Ltd., incorporated in 1997, is an IT solutions provider headquartered in Mumbai, with sales and services offices across various cities in India and a branch in Singapore. Over the years, it has built deep expertise to develop products and solutions for specialized disciplines across business verticals, which are IT Infrastructure Products and Solutions including Data Centre Solutions and End-User Computing; IT Enabled Services (ITes) including Managed Services, Multi-Vendor Support Services and IT Facility; and Cloud and Data Management Services include migration of workload from data centres to cloud. The company’s business operations involve technologically advanced solutions for which they collaborate with a wide range of technology partners, including Dell International Services India Private Limited (Dell), Fortinet Inc. (Fortinet) and Nutanix Netherlands BV (Nutanix). An essential facet of product and service offerings is the ability to tailor and customize offerings to customers’ needs. The collaboration with technology partners heightens the ability to design and innovate products and provide solutions tailored to specific customer requirements. The company’s range of customized offerings and ability to tailor solutions to the particular needs of customers specifically have enabled it to garner prominent customers across industries and count leading public and private sector entities across diverse customer industries such as banking, financial services, and insurance (BFSI), IT, ITeS, and Pharmaceutical. Orient Technologies’ constant endeavour is to nurture every client relationship to ensure it translates into a long-term association. The company also continually engages with customers to understand their requirements better, provide more holistic services, and identify new areas where they can engage with them.
Objective of the Orient Technologies Ltd IPO
The net proceeds from the fresh issue will be used towards the following purposes:
- Funding the capital expenditure requirement for setting up of Network Operating Centre (NOC) and Security Operation Centre (SOC) at Navi Mumbai Property and Purchase of equipment and devices to offer Devise-as-a-Service (DaaS) offering;
- Acquisition of office premise at Navi Mumbai;
- General corporate purposes.
Rationale To Invest In Orient Technologies Ltd IPO
Marquee customers across diverse industries enhance the company’s competitive edge
Orient Technologies commenced business in 1997 and has since built a reputation in India based on the quality of its products and services. One of the singular factors that have enabled it to grow its business consistently is the ability to tailor and customize products and services to suit customers’ requirements. Over the years, Orient Technologies has built deep expertise in developing products and solutions for specialized disciplines, including Human Computer Interaction, End-User Computing, and Robotic Process Automation. The company’s business operations involve technologically advanced solutions, for which it collaborates with a wide range of technology partners, including Dell, Fortinet, and Nutanix. The company’s collaboration with technology partners heightens the ability to design and innovate products and provide services tailored to specific customer requirements. The company has demonstrated an ability to cater to entities across various customer industries. As of June 30, 2024, they had a diverse base of customers across public and private sector entities across diverse customer industries such as BFSI, IT, ITeS, and healthcare/pharmaceutical. Orient Technologies has also established a strong relationship with marquee customers such as Coal India, Mazagon Dock, D’Décor, Jyothy Labs, ACG, Integreon, Bluechip, Tradebulls, VJS Bank, VKS Bank, and Joint Commissioner of Sales Tax (GST Mahavikas). Its top 10 customers have consistently contributed a significant part of the revenue from operations. The revenue from its top 10 customers constituted 38.1% of sales for FY24. This highlights the company’s ability to maintain significant and stable revenue streams through strategic customer relationships across diverse industries.
Global presence with high entry barriers to aid business performance
Orient Technologies offers a wide-ranging and diversified bouquet of product and service offerings and classifies business into three verticals: IT Infrastructure, ITeS, and Cloud and Data Management Services. The company’s products and services in IT Infrastructure are comprised of Data Centre Solutions and End-User Computing. While the IT Infrastructure segment has the longest operational track record and the largest revenue-generating segment, it has broad-based offerings that are significant and is continually adding new products. The ITeS segment includes Managed Services, Multi-Vendor Support Services, IT Facility Management Services, Network Operations Centre Services, Security Services, and Renewals. The company’s large pool of skilled and technically competent resources ably supports ITeS operations, and this segment grew at a CAGR of 29.5% between FY22 and FY24. Over the years, cloud services have gained traction due to their ability to transform enterprises by adapting modern technologies. The company’s Cloud and Data Management Services include workload migration from data centres to the cloud. Its products and services in this vertical comprise data analytics, business analytics, RPA, IoT, DevOps, containerization, and microservices on a subscription basis. The company has developed cloud expertise, scalability, domain knowledge, and partnerships with technology partners, which are key to competitive edge.
Valuation of Orient Technologies Ltd IPO
Orient Technologies is engaged in IT solutions and related services across business verticals. Its expertise, enhanced over the years, combined with the strength of its collaborative efforts with technology partners, enables it to provide customized IT solutions to customers. It also tracks developments in its business segments to stay well-informed of emerging trends and capitalize on new business opportunities. The company’s business operations are concentrated in India, and revenues are predominantly generated from India. While they cater to a large number of multinational companies and transnational corporations and have a branch in Singapore, they are yet to expand their international operations significantly. The (Indian) IT Services industry is predominantly export-oriented, with exports accounting for 85% of the total revenue, with North America and Europe being key geographies. The company demonstrated consistent Rev/EBITDA/PAT growth at a compound annual growth rate (CAGR) of 13.7%/12.9%/11.2% during FY2022-24 period, respectively. The company has experienced sustained growth in financial performance commensurate with the broadening of its product range and increased customer base. 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. The issue is valued at a P/E of 20.7x on the upper price band based on FY24 earnings, which is deemed fair compared to its peers. Therefore, we recommend a SUBSCRIBE rating for the issue.
What is the Orient Technologies Ltd IPO?
Orient Technologies IPO is a book built issue of Rs 214.76 crores. The issue is a combination of fresh issue of 0.58 crore shares aggregating to Rs 120.00 crores and offer for sale of 0.46 crore shares aggregating to Rs 94.76 crores.
How to apply for the Orient Technologies Ltd. IPO through Stoxbox?
To apply for the Orient Technologies Ltd IPO through StoxBox one can apply from the website and also from the app. Click here
When will the Orient Technologies Ltd IPO open?
Orient Technologies Ltd IPO is opening on 21st August 2024.
What is the lot size of the Orient Technologies Ltd IPO?
The Lot Size of Orient Technologies Ltd IPO is 72 equity shares
When is the Orient Technologies Ltd. IPO allotment date?
The allotment Date for Orient Technologies Ltd IPO is 26st August 2024
When is the Orient Technologies Ltd IPO listing date?
The listing Date for Orient Technologies Ltd IPO is 28th August 2024
What is the minimum investment required for the Orient Technologies Ltd. IPO?
In the Retail segment the minimum investment required is Rs. 14,832
What is the maximum investment allowed for the Orient Technologies Ltd IPO?
In the Retail segment the maximum investment requirement is Rs. 192,816
What are the risks associated with investing in the Orient Technologies Ltd IPO?
- The company is heavily reliant on its top 10 customers, and the loss of such customers or a significant reduction in their purchases will have a material adverse impact on the business.
- The company’s future success will depend on its ability to effectively implement business and growth strategies. Further, the company is in the process of adopting a new line of business. Any failure to effectively implement business and growth strategies or successfully operate in this new line of business may adversely affect the company’s results of operations.
- The company’s success depends on long-term relationships with customers. They do not generally enter into long-term contracts with customers. The loss of one or more customers or a reduction in their demand for solutions could adversely affect the business, results of operation, and financial conditions.
When will the Orient Technologies Lt IPO shares be credited to my Demat account?
The Orient Technologies Ltd IPO be credited to the account on allotment date which is 27th August 2024
Where can I find the Orient Technologies Ltd IPO prospectus?
The prospectus of Orient Technologies Ltd IPO prospectus can be find on the website of SEBI, NSE and BSE
What are the important dates related to the Saraswati Orient Technologies Ltd IPO?
| IPO Open Date | Tuesday, August 27, 2024 |
|---|---|
| IPO Close Date | Thursday, August 29, 2024 |
| Basis of Allotment | Friday, August 30, 2024 |
| Initiation of Refunds | Monday, September 2, 2024 |
| Credit of Shares to Demat | Monday, September 2, 2024 |
| Listing Date | Tuesday, September 3, 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on August 29, 2024 |
