The listing fell slightly below expectations, as the shares were trading at a grey market premium (GMP) of 46% over the issue price prior to the debut.
Orient Technologies’ IPO received a robust response, with a subscription rate of 152 times, largely driven by heavy bidding from non-institutional investors on the final day.
“The substantial oversubscription and impressive listing gain demonstrate strong investor confidence in Orient Technologies’ future prospects. The company’s long track record and diverse clientele solidify its market position. Consistent financial growth and a healthy balance sheet further enhance investor appeal, said Shivani Nyati, Head of Wealth at Swastika Investmart.
Nyati added, “Orient Technologies’ listing is a testament to its strong fundamentals and positive market outlook. However, investors should remain cautious about potential challenges, such as industry competition and reliance on key clients. We advise investors to hold their shares with a stop-loss at Rs 270.”Hashim Yacoobali, Director of South Gujarat Shares and Sharebrokers, commented on the stock’s technical outlook: “On the upward side, 307–331 will act as a resistance zone, while 284–269 will serve as a support zone. The bullish trend is expected to remain intact within this range. We anticipate further upward momentum in the coming days, targeting the 388–412 zone.”The proceeds from the fresh issue will be used to fund capital expenditure requirements, acquire office premises in Navi Mumbai, and cover general corporate purposes.Over the years, Orient Tech has developed deep expertise in creating products and solutions for specialized disciplines across IT infrastructure, IT-enabled services (IteS) and cloud and data management services.
It collaborates with top technology companies like Dell, Fortinet, and Nutanix to offer advanced solutions tailored to meet the specific needs of their customers.
The product and services offered by Orient Technologies, within IT Infrastructure, comprises Data Centre Solutions and End-User Computing.
The IT Infrastructure segment has a track record of being the longest-operational business segment and also the largest revenue-generating segment. It has added new products making it a broad-based offering, and growing at a CAGR of 58.60% between fiscal 2021 and fiscal 2023.
In FY24, the company’s revenue from operations increased 12% year-on-year to Rs 603 crore, while profit for the same period rose to Rs 41.4 crore.
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