Shares of Orient Technologies Ltd. made a strong debut at Dalal Street on Wednesday as the debutant IT company was listed at ₹288 on NSE, a premium of 39.81% over its issue price of ₹260 apiece. Similarly, the stock kicked off its maiden trading session at a premium of 40.7% at ₹290 on BSE.

The Orient Technologies IPO listing aligns with pre-listing expectations, fuelled by robust investor response and reasonable valuations.

Ahead of the listing, participants in the grey market were trading Orient Technologies IPO shares at around 42% premium. The grey market is an unofficial platform for trading in IPO shares till the listing. Investors generally look at grey market to know the possible listing price of IPO.

The IPO saw a bumper subscription of 151.71 times on the last day of the bidding process. The issue closed for subscription on August 23.

The portion reserved for non-institutional investors (NIIs) was subscribed 300.59 times, and that for retail investors was booked 66.87 times. The category set aside for qualified institutional buyers (QIB) received 189.90 times subscription.

Priced at ₹195-206 per share, the company intended to raise ₹215 crore via the IPO at the upper end.

The IPO included fresh issuance of shares worth ₹120 crore and an offer-for-sale of 46 lakh equity shares worth ₹94.76 crore by promoters.

Under the OFS, promoters Ajay Baliram Sawant, Umesh Navnital Shah, Ujwal Arvind Mhatre and Jayes Manharlal will be offloading their part stakes.

Out of the ₹120 crore that the company will raise through the fresh issue of shares, ₹79.6 crore will be utilised for capex, while another ₹10.35 crore will be used to acquire an office premise in Navi Mumbai.

About the company

Orient Technologies Ltd. offers data centre solutions, servers, storage, active and passive networking components like switches, routers, access points etc., collaboration solutions and security solutions.

The company also offers end-user computing involves desktop management, end-user support and mobile device management.

Cloud and Data Management Services, along with IT-enabled services, including migration of workload from data centres to cloud among other services.

Financials

For the financial year 2024, Orient Technologies posted a revenue of ₹603 crore, compared to a topline of ₹535 crore in the financial year 2023 and ₹467 crore in the financial year 2022.

The company’s net profit at the end of FY24 stood at ₹41.4 crore as against ₹38 crore in FY23 and ₹33.5 crore in FY22.

Orient’s margins though have remained in between the 9% to 10% range over the last three years at 9.4%, 9.1% and 9.8% respectively, with the first one being that of FY24.