Orient Technologies Ltd IPO: Review, Valuation, Date & GMP

Orient Technologies IPO - Complete Overview

Orient Technologies IPO a Mainboard IPO is a book-built issue of Rs.214.76 crore (10,425,243 Shares) by Orient Technologies Ltd. that was founded in July 1997. It is a rapidly expanding provider of IT solutions and is based and headquartered in Mumbai, Maharashtra. The organization has gathered a wealth of expertise to produce goods and services specifically for particular industries within its vertical business markets.

Below is a summary of these areas:

IT Infrastructure: End-user computing and data center solutions are among the goods and services offered;

IT Enabled Services (IteS): Managed services, multi-vendor support services, IT facility management services, network operations center services, security services, and renewals are among its services.

Cloud and Data Management Services: Services related to it include workload migration from data centers to the cloud.

In a variety of client industries, including banking, financial services, insurance (BFSI), IT, ITeS, and healthcare/pharmaceutical, they provide services to top public and private sector organizations.

As of FY24, Indian IT services accounted for approx. 53% of all IT revenue in India. The IT Sector contributed 7.5% to the Indian GDP in FY2023.

The company's clientele consists of the Mazagon Dock Shipbuilders Ltd. (Mazagon Dock), Joint Commissioner of Sales Tax (GST Mahavikas), Mumbai, Tradebulls Securities Private Ltd. (Tradebulls), Vasai Janata Sahakari Bank Ltd. (VJS Bank) and Vasai Vikas Sahakari Bank Ltd. (VKS Bank), Integreon Managed Solutions India Private Ltd. (Integreon), and D'Décor Exports Private Ltd. (D'Décor).

The company is certified to operate an Information Security Management System by ISO/IEC 27001:2013, ISO 9001:2015 for Quality Management Systems, ISO 20000-1:2018 for Information Technology Services Management, and ISO 27001:2013 for Information Security Management Systems.

Furthermore, the company has been awarded the ISO 22301:2012 and CMMI Maturity Level 3 certificates for its business continuity management systems. The company's sales and service offices are spread throughout Indian cities, including Ahmedabad, Gujarat, New Delhi, Bengaluru, Karnataka, Chennai, Tamil Nadu, and Navi Mumbai and Pune in Maharashtra.

The company plans to launch its IPO on 21 August 2024.

Orient Technologies IPO Overview

Orient Technologies IPO of Rs.214.76 crore comprises a fresh issue of 0.58 crore Shares worth Rs.120 crore and an offer for sale (OFS) of 0.46 crore Shares amounting to Rs.94.76 crore out of which 35% is allocated to retail investors, 50% to institutional investors and 15% to non-institutional investors. The IPO date is from August 21 to August 23, 2024. The IPO listing is on Wednesday, August 28, 2024, and it will be held on the BSE and NSE. Orient Technologies IPO price band is between Rs.195 to Rs.206 for each Share.

If You want to apply for the IPO, Click Here to Open a Demat Account.

 

Company Financial

Orient Technologies Ltd.'s revenue rose by 12%, while profit after tax (PAT) increased by 8% during the FYs ending March 31, 2024, and March 31, 2023. 

Below is the synopsis of the company's financial data for the financial year that concluded on 31 March 2024.

• The company’s total revenue is over Rs.606.86 crore.

• The net worth of the company is Rs.175.31 crore.

• The company's EBITDA is Rs.566.18 crore.

• The total assets of the company are Rs.311.14 crore.
  
  

(Amount in crore)

Period	31 Mar 2024	31 Mar 2023	31 Mar 2022
Total Assets	311.14	215.25	176.32
Total Revenue	606.86	542.01	469.12
PAT	41.45	38.3	33.49
Net worth	175.31	128.82	94.11
Total Reserves & Surplus	138.79	111.32	76.61
Total borrowings	4.82	12.86	2.28

 

Revenue Bifurcation

Below is the revenue breakdown for various activities.

(Amount in million)

Net Cash flow in various Activities	FY 2024	FY 2023	FY 2022
Net Cash Flow Operating Activities	222.94	19.54	304.78
Net Cash Flow Investing Activities	-121.05	-117.15	-84.08
Net Cash Flow Financing Activities	-97.24	44.05	-84.98

 

Segment-wise Revenue Bifurcation For The Last Three Fiscals

(Values in Million)

Segment	FY 2024	FY 2023	FY 2022
(IT Infrastructure Products and Services)	3,146.47	3,493.39	3,294.62
ITeS	1,339.16	1,052.07	798.37
Cloud and Data Management Services	1,543.30	805.56	581.44

Industry-wise Revenue Bifurcation For The Last Three Fiscals

(Values in Millions)

Industry	FY 2024	FY 2023	FY 2022
BFSI	1,306.37	1,448.54	1,791.97
Broadcast Media Production & Distribution	310.88	46.93	16.15
Communication	770.92	345.08	178.33
Healthcare	233.06	220.61	243.26
ITeS	587.62	708.51	536.67
Manufacturing	190.86	148.70	64.68
Others	1,807.60	1,545.80	1,363.89
Government & PSU	821.62	886.83	479.49
Total	6,028.93	5,351.02	4,674.43

 

State-wise Revenue Bifurcation For The Last Three Fiscals

(Values in Millions)

State	FY 2024	FY 2023	FY 2022
Gujarat	43.93	85.93	77.21
Karnataka	196.88	172.10	272.64
Madhya Pradesh	6.50	52.44	-
Tamil Nadu	119.67	189.16	99.84
Delhi	60.54	58.40	125.53
Haryana	0.71	3.19	3.81
Telangana	17.77	5.62	15.17
West Bengal	4.21	1.59	1.43
Maharashtra	5,531.78	4,725.28	3,979.28
Total	5,981.99	5,293.71	4,574.91

 

Country-wise Revenue Bifurcation For The Last Three Fiscals

(Values in Millions)

Country	FY 2024	FY 2023	FY 2022
India	5,981.99	5,293.71	4,574.91
Singapore	24.73	57.31	99.52
Others	22.21	-	-
Total	6,028.93	5,351.02	4,674.43

 

Detailed Video

The Objective of The Issue

The company desires to use the Net Proceeds from the Issue to fulfill its following goals:

• Purchasing office space in Navi Mumbai at units 1201, 1202, 1203, and 1204, respectively, located at Plutonium Business Park, Trans-Thana Creek Industrial Area, Turbhe MIDC, District Thane, Navi Mumbai (Navi Mumbai Property).

• Financing the necessary capital expenditures for:

• Purchasing equipment to establish a Security Operation Center (SOC) and Network Operating Center (NOC) at Navi Mumbai Property.

• Purchasing equipment and devices to provide a Devise-a-Service (DaaS) offering (Capital Expenditure).

• General Corporate Purposes.
  
  

Peers of Orient Technologies Ltd.

Company Name	Face Value (Rs.)	EPS (Rs.)	P/E (x)
Dynacons Systems & Solutions Ltd.	10	42.41	29.47
HCL Technologies Ltd.	2	57.99	26.93
Wipro Ltd.	2	20.89	23.39
LTIMindtree Limited	1	154.85	34.56
Allied Digital Services Ltd.	5	8.29	26.05
Dev Information Technology Limited	5	4.19	29.01
Tech Mahindra Ltd.	5	26.66	55.17
Silicon Rental Solutions Ltd	10	12.56	14.41

 

Evaluation

The Orient Technologies IPO price is between Rs.195 to Rs.206 for each Share.

Evaluation of P/E Ratio

Considering the FY 2024, with an EPS of Rs.11.80 from the last year, the resulting P/E ratio is 17.45x.

Considering the weighted EPS of Rs.11.14 for the last three years, the P/E ratio is 18.49x.

Comparative Analysis with Listed Peers

The average P/E Ratio of the industry is 29.87x.

Particulars	P/E Ratio (x)
Highest	55.17
Lowest	14.41
Average	29.87

In simple words, the P/E ratio of Orient Technologies IPO (17.45x), compared with the industry’s average P/E of 29.87x, has an undervaluation. Hence the price of the Share seems fairly priced for the investors when considered based on the average P/E ratio of the industry.

 

IPO's Strengths

• Strong promoters and a board of directors backed by an experienced senior management team.

• A prominent client base spanning several customer industries.

• A broad and diversified offering of IT solutions and services.

• Track record of financial performance.

 

IPO’s Weaknesses 

• A portion of the net proceeds will be used to finance its capital expenditure needs, which include the creation of the new office's interior and the acquisition of equipment. This development could have a materially negative impact on the financial situation, operational results, and growth prospects if the costs exceed estimates and there is a risk of unplanned delays in implementation and cost overruns associated with it.

• They have previously experienced negative net cash from financing and investing activities further negative net cash from these activities might negatively affect its growth potential.

• Regarding the capital expense for the acquisition of equipment for its Navi Mumbai property, they have not yet placed any orders. Time and expense overruns could occur if there is any delay in making the orders or if the vendor is unable to deliver the equipment on time.

• The company could be held accountable for any harm done to its IT systems, their malfunction, security lapses, or improper disclosure of private data. These kinds of liabilities could negatively impact its operations, financial situation, and business outcome.

 

IPO GMP Today

The most recent Orient Technologies IPO GMP today is Rs.32.

 

Orient Technologies IPO timetable (Tentative)

The IPO is scheduled from August 21 to August 23, 2024, with IPO allotment on August 26, 2024, refund initiation on August 27, 2024, and listing on August 28, 2024.

Events	Date
IPO Opening Date	August 21, 2024
IPO Closing Date	August 23, 2024
IPO Allotment Date	August 26, 2024
Refund Initiation	August 27, 2024
IPO Listing Date	August 28, 2024

 

Orient Technologies IPO Details 

The IPO with a face value of Rs.10 per Share is set to start on August 21, 2024, close on August 23, 2024, and offers a total issue size of 10,425,243 Shares at Rs.195 to Rs.206 per Share with a Lot size of 72 Shares and will be listed at BSE and NSE.

IPO Opening & Closing Date	August 21, 2024 to August 23, 2024
Face Value	Rs.10 per Share
Issue Price	Rs.195 to Rs.206
Lot Size	72 Shares
Issue Size	10,425,243 Shares (aggregating up to Rs.214.76 crores).
Offer for Sale	4,600,000 Shares (aggregating up to Rs.94.76 crores).
Fresh Issue	5,825,243 Shares (aggregating up to Rs.120 crores)
Listing at	BSE, NSE
Issue Type	Book Built Issue IPO
Registrar	Link Intime India Private Ltd

 

Orient Technologies IPO Lot Details 

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (72 Shares) amounting to Rs.14,832, and 13 Lots (936 Shares) amounting to Rs.1,92,816 respectively, while for HNI investors, the minimum Lot is 14 (1,008 Shares) amounting to Rs.2,07,648.

Minimum Lot Investment (Retail)	1 Lot
Maximum Lot Investment (Retail)	13 Lots
S-HNI (Min)	14 Lots
S-HNI (Max)	67 Lots
B-HNI (Min)	68 Lots

Orient Technologies IPO Reservation

Institutional Share Portion	50%
Retail Investors Share Portion	35%
Non Institutional Shares Portion	15%

 

Promoters and Management of Orient Technologies Ltd. 

• Ajay Baliram Sawant

• Jayesh Manharlal Shah

• Umesh Navnitlal Shah 

• Ujwal Arvind Mhatre

Pre-Issue Promoter Shareholding	97.96%
Post-Issue Promoter Shareholding	-

 

Orient Technologies IPO Lead Managers

• Elara Capital (India) Private Limited

 

Dividend Policy

The company has not paid any except the mentioned below dividend.

Particular	Mar 31, 2024	Mar 31, 2023	Mar 31, 2022
Interim dividend per equity Share	1.71 Rs.	2.29 Rs.	0.22 Rs.

 

Conclusion

The company has experienced negative cash flow in operating, investing activities, and financing activities in the last few fiscal years. To fulfill its objectives, the company is currently conducting an IPO for the public.

We believe the information offered in this blog helps you learn about the company's financial performance. So this blog will be very useful to you if you are looking for information about the approaching IPO since it will give you reliable information about the company's, insights, financials, and past performance. If this informative blog piques your interest, you may be interested in reading our other related and useful posts on our website.

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company Click Here to Download the DRHP.

Disclaimer: This IPO analysis is only for informational purposes and should not be considered as investment advice. Always do your research and consult with a financial advisor.

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