The initial public offering (IPO) of Orient Technologies Limited, which launched on August 21, 2024, has generated significant enthusiasm among investors, resulting in the issue being fully subscribed on the very first day. With a total of 74,49,846 equity shares on offer, the IPO attracted bids for 4,95,13,752 shares, marking an impressive subscription rate of 6.65 times.
The price band for the IPO is set between Rs 195 and Rs 206 per share. Investor interest has been particularly strong in the retail and Non-Institutional Investors (NII) segments. The retail portion was oversubscribed by 10.50 times, indicating robust participation from individual investors who are keen on acquiring shares of the company. Similarly, the NII portion was subscribed 6.17 times, reflecting strong demand from non-institutional investors. However, the Qualified Institutional Buyers (QIB) portion experienced a much lower subscription rate of only 0.02 times, suggesting a more muted response from institutional investors.
Prior to the IPO, Orient Technologies successfully raised Rs 64.43 crore from anchor investors. Notable participants in the anchor round included Pine Oak Global, Saint Capital Fund, SB Opportunity Fund I, Elara Capital (Mauritius) Fund, and Rajasthan Global Securities. This early investment underscores the confidence that prominent investors have in the company's prospects.
The IPO comprises a fresh issue of 58 lakh shares, aimed at raising Rs 120 crore, coupled with an offer for sale of 46 lakh shares, which is expected to generate Rs 94.76 crore. The allotment process for the shares is anticipated to be completed by August 26, 2024. Following this, the shares are set to be listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) with a tentative listing date of August 28, 2024.
In the grey market, the latest premium (GMP) for the Orient Technologies IPO, as of August 21, 2024, at 5:29 PM, stands at Rs 70. Given the upper end of the price band at Rs 206, the estimated listing price is projected to be Rs 276 (price band plus GMP). This suggests a potential gain of approximately 33.98% per share, reflecting strong positive sentiment and investor confidence in the company’s future performance.
Overall, the enthusiastic response to the IPO, combined with the significant premium in the grey market, indicates strong market optimism surrounding Orient Technologies Limited and its forthcoming debut on the stock exchanges.
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