Orient Technologies had a solid start on the first day of its initial public offering (IPO) as company shares were fully subscribed within an hour of opening. The information technology (IT) solutions provider offered shares worth Rs 214.76 crore in its IPO on August 21.
The shares of the company were offered at a price range between Rs 195-206 per share. The IPO had fresh issue of shares worth Rs 120 crore. Nearly 46 lakh equity shares worth Rs 94.76 crore were offered for sale (OFS) by promoters Ajay Baliram Sawant, Umesh Navnital Shah, Ujwal Arvind Mhatre and Jayes Manharlal.
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The issue was oversubscribed at 3.97 times. Retail investors subscribed 6.67 times of their reserved portion followed by non-institutional investors (NIIs) who placed bids 2.80 times compared to the quota booked for them. However, no bids were received from qualified institutional buyer (QIB) on the first day.
The public issue has reserved 50 per cent of the shares for qualified institutional buyers (QIBs), booked 15 per cent for non-institutional investors, and remaining 35 per cent for the retail investors.
The issue will close for bidding on August 23. According to its DRHP, funds raised from the IPO will be used by the company to finance its capital expenditure requirements and general corporate purposes. Additionally, it will spend Rs 10.35 crore for acquiring an office in Navi Mumbai.
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The Mumbai-based company raised Rs 64.43 crore from five anchor investors before the issue’s opening on August 21. Pink Oak Global Fund and Saint Capital Fund bought 9.7 lakh equity shares each followed by SB Opportunities Fund that took 4.85 lakh shares. Then Elara Capital (Mauritius) secured 2.91 lakh shares and Rajasthan Global Services obtained 4.09 lakh shares.
Elara Capital is the running lead manager for the IPO and Link Intime India is the registrar.
According to media reports, the unlisted shares of Orient Technologies were commanding a strong grey market premium (GMP) of Rs 30 or 14.5 per cent at the upper end of the issue price.
Anand Rathi Research has given a ‘subscribe’ rating on the IPO, saying that the company is fairly priced on the valuation front.
Orient Technologies was founded in 1992. The Mumbai-headquartered company has specialties in providing products and solutions across IT infrastructure, IT enabled services (ITeS), cloud and data management services. Its client base includes banking institutions, pharma companies, manufacturers and a large pool of small and medium sized enterprises, according to the company’s LinkedIn.
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