Robust Response from Retail and Non-Institutional Investors
Closing today, Friday, August 23, the Orient Technologies IPO has attracted a lot of interest with a subscription rate of 151.71 times as per BSE figures. Reflecting the great demand, the first share sale saw bids for an amazing 1,13,02,18,416 shares against the 74,49,846 shares on offer.
While non-institutional investors (NII) showed even more excitement with a 600.59-time subscription, retail investors registered for the IPO 66.87 times. Subscribed 189.90 times, the percentage set aside for qualified institutional buyers (QIBs) shows general faith in the company’s future.
Over the previous several days, the subscription momentum developed gradually. The IPO was oversubscribed 16.96 times on the second day of bidding; retail investors accounted for 24.49 times and the NII sector for 20.97 times. The QIB section registered at 16%. With an aggregate subscription of 6.65 times—led by retail investors at 10.50 times and NIIs at 6.17 times—the first day had already established a good tone.
Established in 1997 and situated in Mumbai, Orient Technologies is a supplier of IT solutions that has effectively collected ₹64.43 crores from anchor investors before the IPO. With a face value of ₹10 per share, the company’s public offer runs from ₹ 195 to ₹ 206 per equity share.
Ensuring a fair distribution across investor groups, the IPO is split 50% for QIBs, 15% for NIIs, and 35% for retail investors.
Broking Reviews
SBICAP Securities Ltd
The firm is priced in the upper price category with an FY24 P/E multiple of 20.7x. With a solid CAGR in revenue, EBITDA, and PAT, the company shows potential for further growth. The wide diversity of products, services, and technological collaborations helps to strengthen its competitive stance. Still, the fragmented market causes issues. Subscribers should be long-term investors, the broker advises.
Arihant Capital Markets Ltd
Strong relationships and deep knowledge of the organisation assist it in fulfilling the growing demand for IT solutions. The broker advocates long-term subscriptions; the P/E ratio of the issue is 20.70x at the highest price level.
IPO Details
Worth ₹214.76 crore, the IPO consists of a fresh issue worth ₹120 crore in addition to an offer-for-sale (OFS) of 46 lakh equity shares by the founders Ajay Baliram Sawant, Umesh Navnitlal Shah, Ujwal Arvind Mhatre, and Jayesh Manharlal Shah. The money is supposed to be used for general corporate usage and capital initiatives, including the purchase of a Navi Mumbai office complex.
Grey Market Premium (GMP)
Orient Technologies’ IPO is selling at ₹276 per share—33.98% above the IPO price of ₹206. Their grey market premium is ₹70. GMP’s continuous rising tendency hints at a strong market launch.
Since the listing is likely to reveal the great interest shown throughout the subscription period, all eyes are now on it as the auction draws to a close.
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