Orient Technologies is set to launch its ₹215 crore Initial Public Offering (IPO) on Wednesday, August 21. The IPO will consist of a fresh issue of ₹120 crore, with the remaining amount coming from an Offer For Sale (OFS) of 4.6 crore shares.
IPO Details:
- Price Band: The price range for the IPO has been set between ₹195 to ₹206 per share.
- Subscription Period: The IPO opens on August 21 and closes on August 23.
- Lot Size: Investors can bid for one lot of 72 shares, with additional bids in multiples of 72.
- Stakeholder Impact: Post-IPO, the promoters’ stake in the company will decrease to 73%.
Allocation of Shares:
- Qualified Institutional Buyers (QIB): 50% of the IPO is reserved.
- Non-Institutional Investors: 35% of the IPO is reserved.
- Retail Investors: 15% of the IPO is reserved.
About Orient Technologies:
Orient Technologies specializes in a range of IT solutions, including:
- Data Centre Solutions: Servers, storage, and networking components like switches, routers, and access points.
- End-User Computing: Desktop management, end-user support, and mobile device management.
- Cloud and Data Management Services: Including migration of workloads from data centres to cloud platforms.
Utilisation of Funds:
- Capex: ₹79.6 crore will be used for capital expenditure.
- Office Acquisition: ₹10.35 crore will go towards acquiring an office in Navi Mumbai.
Financial Overview:
- Revenue Growth: The company reported a revenue of ₹602.9 crore in FY24, up from ₹535.1 crore in FY23 and ₹467.4 crore in FY22.
- Net Profit: Orient Technologies posted a net profit of ₹41.4 crore in FY24, an increase from ₹38.3 crore in FY23 and ₹33.5 crore in FY22.
- Margins: The company’s profit margins have remained stable, ranging between 9% and 10% over the past three years.
Additional Highlights:
- Customer Concentration: The top 10 customers contributed to 38.1% of total revenue in FY24.
- Order Book: As of June 30, 2024, the order book stood at ₹101.2 crore, with significant contributions from PSUs like Coal India and Mazagon Dock.
- Receivables: Trade receivables for FY24 were ₹157 crore, accounting for 26.14% of annual revenue.
- Attrition Rate: The average attrition rate reduced to 21.84% in FY24, from 31% in FY23.
- New Ventures: The company has recently ventured into Device as a Service (DaaS), offering various devices and managed services on a subscription basis.
TOPICS:
Orient Technologies