Orient Technologies Files DRHP with SEBI for IPO Fundraising

Mumbai based Orient Technologies is gearing up for a move in the financial landscape as it files a Draft Red Herring Prospectus with the Securities and Exchange Board of India for its initial public offering . The company aims to raise funds through this IPO to boost its operations and take advantage of the growing opportunities in India's IT sector.

Offer Details

The IPO of Orient Technologies consists of a mix of new shares being issued and existing shares being sold by the company's promoters. Each share has a face value of ₹10. Orient Technologies plans to raise ₹120 crore by issuing new shares while the promoters will sell up to 46 lakh shares. Each promoter intends to sell up to 11.50 lakh shares.

The fund raised from selling new shares during the initial public offering will be used for specific purposes. Around ₹79.65 crore will go towards funding capital expenditure needs while ₹10.35 crore will be used to buy office space in Navi Mumbai. The rest of the funds will be used for general corporate expenses.

Elara Capital India Private Limited is managing the IPO while Link Intime India Private Limited is handling the administrative aspects. Once the IPO is complete the company's shares will be listed on both Bombay Stock Exchange and National Stock Exchange.

About Orient Technologies

Established in 1997, Orient Technologies has emerged as a dynamic IT solutions provider catering to diverse industries with its specialized offerings. The company's portfolio encompasses a spectrum of services, spanning IT infrastructure, IT-enabled services and Cloud and Data Management Services. Leveraging strategic partnerships with leading technology firms like Dell, Fortinet, and Nutanix, Orient Technologies delivers tailor made solutions to meet the evolving needs of its clientele.

Orient Technologies has a strong list of clients from both public and private sectors spanning industries like banking, finance, insurance, IT, IT services and healthcare/pharmaceuticals. Some notable clients include Coal India, Mazagon Dock, D’Décor, and Jyothy Labs. The company has a solid presence in major Indian cities and even has a branch office in Singapore allowing it to effectively serve its clients' needs.

Financial Performance and Industry Outlook

In fiscal 2022–23, Orient Technologies witnessed a commendable growth trajectory with revenue from operations surging to ₹535.10 cr from ₹467.44 cr in 2021–22. This uptick was fueled by increased revenue across various segments including IT infrastructure products and services, Cloud and Data Management Services and IteS services. The company's profit after tax also registered a healthy growth of 14.35 percent from ₹33.49 cr in 2022 to ₹38.30 cr in 2023.

Looking ahead the IT industry is expected to keep growing steadily likely at a rate of 6-8 percent annually from 2023 to 2027. This growth will be largely fueled by the banking, financial services, and insurance sectors as well as various government initiatives. These factors will support ongoing expansion and innovation in IT enabled services driving the industry forward.

Final Words

Orient Technologies' decision to embark on an IPO demonstrates its confidence in the future potential of India's IT sector and its dedication to creating value for investors. With a proven track record, a strong client base and strategic investments in the pipeline the company is well positioned to pursue sustainable growth and innovation in the coming years.