Orient Technologies Limited

About Orient Technologies Limited

Incorporated in 1997, Orient Technologies Limited is an information technology (IT) solutions provider headquartered in Mumbai, Maharashtra. It offers IT infrastructure like data center solutions and end-user computing; IT-enabled services, such as multi-vendor support, network operation, and renewal; and cloud and data management services, such as migration of workloads from data centres to the cloud.

More than 52% of the company’s revenue comes from the IT infrastructure segment, while IT-enabled services contributed over 22% to the revenue for FY24. The rest of the revenue comes from cloud and data management services. 

Orient Technologies partners with Dell, Fortinet, and Nutanix for its technologically advanced solutions. It caters to clients in multiple industries like BFSI, ITeS, Government and public sector undertakings, healthcare and pharmaceuticals, and others. 

Its customer portfolio includes Bluechip, Tradebulls Securities, VJS Bank, VKS Bank, Integreon, Coal India, Mazagon Dock, GST Mahavikas, ACG, Jyothy Labs, and D’Décor. The top 10 customers contributed 38.1% to overall revenue in FY24. 

The company primarily operates in India, with headquarters in Mumbai and sales and service offices in Mumbai, Pune, Ahmedabad, Gujarat, New Delhi, Bengaluru, and Chennai. It also has a branch in Singapore. Overall, it had 1,482 permanent employees as of 30 June 2024. 

Between FY22 and FY24, it saw a CAGR rise of 8.8% in its revenue from operations and 7.4% in its profit. Moreover, the global IT services industry is expected to grow at a CAGR of 7 to 9% between 2023 to 2027 to reach up to $1,220 billion, which could benefit the company. 

And now, Orient Technologies Limited is coming out with its initial public offer (IPO). The total IPO issue size is ₹214.76 crore, comprising fresh issue, aggregating to ₹120 crore, as well as an offer for sale, aggregating to ₹94.76 crore. The money raised from the fresh issue will be utilised for the acquisition of office premises, purchasing equipment and devices for business operations, and general corporate purposes. Its shares will be listed on the NSE and BSE.

Here are key details about the Orient Technologies IPO:

Financial snapshot

Here’s a quick look at Orient Technologies Limited IPO’s strengths, weakness, opportunities and risks (SWOT analysis)

Strengths and opportunities

1. The company has a marquee customer base across diverse industries.
2. Diverse service offerings including Infrastructure as a Service (IaaS), Platform as a Service (PaaS), Software as a Service (SaaS), Function as a Service (FaaS) / Serverless Computing, Database as a Service (DBaaS), Storage as a Service, Content delivery network, Network as a Service (NaaS), Security as a Service (SECaaS), Backup as a Service (BaaS) and Monitoring as a Service (MaaS).
3. Track record of financial performance with EBITDA margins of 9% in FY22, FY23, and FY24 consistently. 
4. The company has a total order book of ₹101 crore as of 30 June 2024, with government and public sector undertaking (PSU) making up ₹30.6 crore of the total orderbook. 
5. Long-term relationships with customers cater to each of its top 10 customers for an average period of 9.9 years as of 31 March 2024.

Risks and threats

1. Typically extends credit for 60 to 120 days to its customers, and delays and defaults might affect its finances with trade receivables of ₹157 crore as of FY24.
2. It has outstanding dues amounting to ₹91 crore to 559 creditors, and its inability to clear them would adversely affect its reputation and finances.
3. Has consistently incurred negative cash flows from investing activities in the last three fiscals. 
4. The business model is human resource intensive, but the average attrition rate for its employees was 21% as of FY24.
5. It faces competition from Dynacons Systems & Solutions, Wipro, HCL Technologies, LTIMindtree, Allied Digital Services, Dev Information Technology, Tech Mahindra, and Silicon Rental Solutions.
6. Its new venture into the Device as a Service (DaaS) segment cannot assure an increase in revenue as the market in India is still nascent.

Orient Technologies Limited IPO details

| Orient Technologies Limited IPO date

According to the offer document filed by the company with the SEBI, the Orient Technologies IPO’s opening date – in other words, the Orient Technologies IPO launch date – will be 21st August 2024. The Orient Technologies IPO closing date is 23rd August 2024. After this, investors will be updated about the allotment status on 26th August 2024.

Investors who have been allotted shares can expect them to be credited to their demat account on 27th August 2024. The Orient Technologies IPO listing date is 28th August 2024. The listing date is the date on which a company's shares are listed on the bourses—NSE and BSE. 

| Orient Technologies Limited IPO Price Band

The IPO is a fresh issue and an offer for sale. The Orient Technologies IPO price band has been set between ₹195 and ₹206 per share. Interested investors can choose a price within this band to apply for the IPO. 

The Orient Technologies IPO listing price will be determined on 28th August 2024. The listing price is the price at which a company’s shares debut on the stock exchanges.

| Orient Technologies Limited IPO Lot size

The Orient Technologies IPO details have been declared. The Orient Technologies IPO lot size is set at 72 shares, and an investor can apply for a minimum of 1 lot. Meanwhile, the Orient Technologies IPO issue size is approx ₹214 crore. 

How to pre-apply for the Orient Technologies Limited IPO?

You can pre-apply for the Orient Technologies Limited IPO on Upstox. The pre-application for this IPO, which means pre-apply open date, usually begins a day before the IPO opens for subscription. 

Follow these steps to pre-apply for the IPO: 

1. Login to your Upstox account, using your six-digit PIN
2. After successfully logging in, click on ‘Discover’
3. On the Discover tab, you will find the ‘Invest in IPO’ section
4. Under the Invest in IPO section, look for the ‘Orient Technologies Limited IPO’ tab and click on it
5. Now fill in all the required information, like ‘bid price’ and ‘lot size’
6. Confirm and click on ‘Pre-Apply’
7. Accept the mandate on your UPI app

How to apply for the Orient Technologies Limited IPO?

If you are interested in this investment opportunity but unsure how to apply for the Orient Technologies Limited IPO, here we are listing out the steps for you. 

When the public issue opens for subscription, one can follow this step-by-step guide on how to apply for the Orient Technologies Limited IPO on Upstox: 

1. Login to your Upstox account, using your six-digit PIN
2. After successfully logging in, click on ‘Discover’
3. On the Discover tab, you will find the ‘Invest in IPO’ section
4. Under the Invest in IPO section, look for the ‘Orient Technologies Limited IPO’ tab and click on it
5. Now fill in all the required information, like ‘bid price’ and ‘lot size’
6. Confirm and click on ‘Apply’
7. Accept the mandate on your UPI app

How to check the Orient Technologies Limited IPO allotment status?

When the allotment process is completed, you can check the status of your application on the Upstox app. Share allotment is generally done around five to six days after an IPO closes. 

Here’s a step-by-step guide on how to check the Orient Technologies Limited IPO allotment status:

1. Login to your Upstox account, using your six-digit PIN
2. After successfully logging in, click on ‘Discover’
3. On the Discover page, you will find the ‘Invest in IPO’ section
4. Under the Invest in IPO section, you will find the ‘View all’ option
5. Once you click on ‘View all’, you will be directed to the ‘IPO’ tab
6. In the ‘IPO’ tab, click on ‘My applications’ 
7. In ‘My applications’, under the History section, your Orient Technologies Limited IPO allotment status will be mentioned

Check Allotment Status

Open a demat account with Upstox to apply for the Orient Technologies Limited IPO

To apply for the Orient Technologies Limited IPO, you need to mandatorily have a demat account. A demat account helps you hold the shares you buy in a dematerialised format. If you don’t have a demat account yet, you can open one with Upstox by visiting our website or by downloading the app.

Here is a step-by-step guide on how to open a demat account with Upstox:

1. Click here to visit the demat account opening page on the Upstox website. 
2. Enter your phone number and other essential details to begin opening a demat account.
3. Upload the scanned copies of your PAN, Aadhaar card, a cancelled cheque, and your bank statement as needed. 
4. Complete the e-verification using the OTP sent to your registered mobile number. 

This is all it takes to open a demat account with Upstox. Easy and quick, right? 

Open Demat Account

Upstox – trading app to apply for the Orient Technologies Limited IPO

Applying for IPOs with Upstox is extremely easy. The user-friendly interface and top-notch security make Upstox one of the leading trading apps in India.

You can apply for the Orient Technologies Limited IPO on Upstox, provided you have a demat account. As mentioned in the previous section, you can simply follow the steps to open a demat account with Upstox. The biggest advantage is that when you apply for an IPO using your Upstox account, the brokerage charges are zero.

In fact, courtesy of its robust features and minimal charges, Upstox is among the most preferred trading apps. Lakhs of Indians trust Upstox as it is a reliable trading platform that makes IPO applications easy.