Orient Technologies made a striking entrance into the stock market on Wednesday, with its shares listing at a notable premium. The stock opened at Rs 290 on the Bombay Stock Exchange (BSE), marking a 40.8% premium over the issue price of Rs 206. On the National Stock Exchange (NSE), the shares began trading at Rs 288, reflecting a 39.8% gain from the issue price.
The IPO saw an overwhelming response, being oversubscribed by 152 times, which highlights the significant investor enthusiasm and confidence in the company's future prospects. This strong demand was also evident in the grey market premium (GMP) of Rs 94, suggesting high pre-listing interest.
Shivani Nyati, Head of Wealth at Swastika Investmart Ltd, provided insights into the successful debut. She attributed the impressive listing gains to Orient Technologies' strong fundamentals, including its long-standing market presence, diverse client base, consistent financial performance, and robust balance sheet. Nyati emphasized that these factors have bolstered investor confidence and led to a positive market reception. However, she advised investors to remain cautious due to potential challenges such as intense industry competition and reliance on key clients. She suggested holding onto the shares with a stop-loss order set at Rs 270 to mitigate risks.
Orient Technologies operates within the IT infrastructure, IT-enabled services (ITeS), and cloud and data management sectors. The company collaborates with leading technology partners like Dell, Fortinet, and Nutanix to deliver customized solutions tailored to specific client needs. Its IT Infrastructure division, which includes Data Centre Solutions and End-User Computing, is the oldest and largest revenue-generating segment. This segment has demonstrated remarkable growth, achieving a compound annual growth rate (CAGR) of 58.60% between fiscal 2021 and fiscal 2023.
For the fiscal year 2024, Orient Technologies reported a 12% increase in revenue, reaching Rs 603 crore, and a profit of Rs 41.4 crore. The funds raised through the IPO are intended for capital expenditure, including acquiring office space in Navi Mumbai, and for other general corporate purposes.
Elara Capital served as the sole book-running lead manager for the IPO, while Link Intime India was the registrar. The successful debut of Orient Technologies not only reflects a positive investor reception but also signals a promising outlook for the company in the competitive IT services market. This IPO has set a high benchmark for future listings and underscores the robust demand for well-positioned tech companies in the market.
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