Orient Technologies IPO today. GMP and experts signal strong stock debut

Orient Technologies IPO Listing: Orient Technologies shares will be listed on the stock exchange today after its initial public offering (IPO) garnered strong demand from investors. Orient Technologies IPO date is August 28.

The allocation of IPO quotas was completed on August 27 and investors are now looking forward to Orient Technologies’ IPO scheduled for today.

“The trading participants of the exchange are hereby informed that the ordinary shares of Orient Technologies Limited will be listed in the list of Group Securities ‘T’ and admitted to trading on the exchange with effect from Wednesday, August 28, 2024,” the BSE said in a statement.

Orient Technologies shares will be available for trading starting today at 10:00 am. The stock will be part of the Special Pre-open Session (SPOS).

Analysts expect Orient Technologies shares to trade at a premium of around 38% to 40% due to demand for the IPO. Orient Technologies’ IPO today, GMP, also suggested that the shares would trade at a steep premium.

Orient Technologies GMP IPO today

Orient Technologies Ltd shares are trading at a high premium in the unlisted market. Orient Technologies IPO GMP today or grey market premium today is ₹83 per share. This indicates that Orient Technologies’ IPO shares will increase by ₹83 as its issue price on the grey market.

Taking into account today’s IPO GMP and issue price, the estimated IPO listing price of Orient Technologies is ₹289 per share, a premium of 40% on the IPO price of ₹206 per share.

“Orient Technologies, an experienced IT solutions provider, is set for a strong IPO debut. The IPO has generated significant investor interest, reflected in a robust subscription ratio of 154.84 and a healthy Grey Market Premium (GMP) of ₹87 (42%). The company’s long track record, diverse customer base and consistent financial growth underscore its strong market position,” said Shivani Nyati, Head of Wealth, Swastika Investmart Ltd.

While Orient Technologies benefits from a strong market presence and a comprehensive IT solutions portfolio, it faces challenges such as dependence on large customers, technology partnerships and government tenders. Intense competition within the IT industry could also impact the company’s growth trajectory, she added.

“Despite these potential risks, the IPO valuation at a P/E ratio of 17.45 appears reasonable. Given the company’s strong fundamentals, investor enthusiasm and the positive outlook for the IT sector, Orient Technologies is well positioned for a successful IPO,” Nyati said.

Prathamesh Masdekar, research analyst at StoxBox, expects a listing premium of 38% above the upper price band for Orient Technologies.

“Orient Technologies’ financial performance going forward is expected to be driven by expanding its product and service portfolio, increasing its global presence, long-term relationships with customers and collaboration with technology partners, thereby enhancing its ability to design and innovate products and provide customized solutions to meet specific customer requirements,” he said.

Therefore, Masdekar advises market participants who have been allocated shares of Orient Technologies to hold them for the medium to long term.

Details of Orient Technologies IPO

Orient Technologies IPO began on Wednesday, August 21 and ended on Friday, August 23. The allotment of shares was completed on August 26 and the IPO of Orient Technologies is today, August 28. The shares of IT solutions provider Orient Technologies Ltd are listed on both the BSE and NSE.

The price for the IPO of Orient Technologies was set at ₹195 to ₹206 per share. At the upper end of the price range, the company increased ₹214.76 crore from the book-build issue, which is a combination of the fresh issue of 58.25 lakh equity shares valued at ₹120 crore and offer to sell 46 lakh shares worth ₹94.76 Crores.

Orient Technologies IPO was subscribed 151.71 times in total. The retail investors’ portion was subscribed 66.87 times while the non-institutional investors’ (NII) portion was subscribed 300.60 times. The qualified institutional buyers’ (QIBs) portion received a subscription rate of 189.90 times.

Elara Capital (India) Private Limited is the bookrunner and lead manager of Orient Technologies’ IPO, while Link Intime India Private Ltd is the registrar of the IPO.

Disclaimer: The views and recommendations expressed above are those of individual analysts or brokerage firms and not of Mint. We advise investors to seek advice from certified professionals before making any investment decision.