Orient Technologies
Book Building issueMainboard₹215 Cr issue
+40.78%
Listing gain over issue price
Issue size
₹215 Cr
1 lot at cut-off
₹14,832
Lot size
72shares
Open
21 Aug 2024
Close
23 Aug 2024
Allotment
26 Aug 2024
Listing
28 Aug 2024
Listing performance
Issue price
₹206
Listed at
₹290
Listing-day close
₹304.45
Latest price
₹207.35
Close on 23 Oct 2026
Listing gain
+40.78%
Return since issue
+10.72%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 21 Aug 2024 – 23 Aug 2024
- Listing date
- 28 Aug 2024
- Face value
- ₹10 per share
- Issue price
- ₹206 per share
- Lot size
- 72 shares
- Issue type
- Book Building issue
- Total issue size
- ₹215 Cr
- Market cap at offer price
- ₹858 Cr
- Promoter holding
- 97.96% → 73.21% pre-issue → post-issue
- ISIN
- INE0PPK01015
- Registrar
- MUFG Intime India Pvt.Ltd.
- Lead managers
- Elara Capital (India) Pvt.Ltd.
- Registered office
- Off No-502, 5th Floor, Akruti Star, Central Road, MIDC, Opp.Akruti Point Central, Andheri (East), Maharashtra
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 31,27,572 | — | — |
| Market maker | 0 | — | — |
Application size
Minimum 72 shares per lot, in multiples, at ₹206
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 72 | ₹14,832 |
| Retail (max) | 13 | 936 | ₹1,92,816 |
| S-HNI (min) | 14 | 1,008 | ₹2,07,648 |
| S-HNI (max) | 67 | 4,824 | ₹9,93,744 |
| B-HNI (min) | 68 | 4,896 | ₹10,08,576 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
31,27,572
Anchor portion
₹64.43 Cr
at ₹206 per share
Valuation and performance
Valuation at offer price
₹206 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 11.57 | 9.95 |
| P/E (×) | 17.80 | 20.70 |
| Price to book (×) | 4.21 | — |
| Market cap | — | ₹858 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 23.64%
- ROCE
- 28.42%
- PAT margin
- 6.87%
- NAV per share
- ₹48.95
- Price to book
- 4.21
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Orient Technologies
Orient Technologies Limited, incorporated in 1997 and converted to a public limited company in 2023, is an information technology solutions provider headquartered in Mumbai, Maharashtra. The company has built deep expertise in developing products and solutions for specialized disciplines across three business verticals: IT Infrastructure (including data centre solutions and end-user computing), IT-enabled Services (managed services, multi-vendor support, facility management, network operations, and backup/disaster recovery), and Cloud and Data Management Services (including workload migration to cloud). The company's core business model centers on its ability to tailor and customize offerings to specific customer needs through collaboration with technology partners. With 1,482 permanent employees as of June 30, 2024, the company serves marquee customers across diverse industries including BFSI, IT/ITeS, healthcare, telecommunications, and government entities. The company generates revenue through project-based contracts, managed services, and IT product solutions.
Company Analysis
from RHPOrient Technologies Limited is an IT solutions provider offering IT Infrastructure, IT-enabled Services (ITeS), and Cloud and Data Management Services to BFSI, IT, healthcare, telecommunications, and government sectors.
Orient Technologies Limited, incorporated in 1997 and converted to a public limited company in 2023, is an information technology solutions provider headquartered in Mumbai, Maharashtra. The company has built deep expertise in developing products and solutions for specialized disciplines across three business verticals: IT Infrastructure (including data centre solutions and end-user computing), IT-enabled Services (managed services, multi-vendor support, facility management, network operations, and backup/disaster recovery), and Cloud and Data Management Services (including workload migration to cloud). The company's core business model centers on its ability to tailor and customize offerings to specific customer needs through collaboration with technology partners. With 1,482 permanent employees as of June 30, 2024, the company serves marquee customers across diverse industries including BFSI, IT/ITeS, healthcare, telecommunications, and government entities. The company generates revenue through project-based contracts, managed services, and IT product solutions.
IT Infrastructure and ServicesCloud Computing and Data ManagementIT-enabled Services (ITeS)Banking, Financial Services and Insurance (BFSI)TelecommunicationsHealthcare and PharmaceuticalsGovernment and Public SectorManufacturingBroadcast Media
Objects of the Issue
- Acquisition of office premise at Navi Mumbai ₹103.48 million p.25
- Funding our Capital Expenditure requirements ₹796.50 million p.25
- General corporate purposes p.25
- Acquisition of office premise at Navi Mumbai p.113
- Funding capital expenditure for Network Operating Centre (NOC) and Security Operation Centre (SOC) at Navi Mumbai Property p.113
- Funding capital expenditure for Device-as-a-Service (DaaS) offering p.113
- General corporate purposes p.113
- Acquisition of office premise at Navi Mumbai ₹103.48 million p.118
- Funding our Capital Expenditure requirements ₹796.50 million p.118
- General corporate purposes p.118
- Funding purchase of equipments for Device-as-a-Service (DaaS) segment including SD WAN switches, notebooks, servers, storage devices and printers for operating lease ₹695.69 million p.229
- Setting up of network operating centre and security operating centre ₹100.81 million p.229
Issue Structure
- Total Issue
- Up to [●] Equity Shares, aggregating up to ₹ [●] million
- Fresh Issue
- Up to [●] Equity Shares, aggregating up to ₹ 1,200 million
- Offer for Sale
- Up to 4,600,000 Equity Shares aggregating up to ₹ [●] million
- Price Band
- Price band of a minimum price of ₹ [●] per Equity Share (i.e., the Floor Price) and the maximum price of ₹ [●] per Equity Share (i.e., the Cap Price)
- Lot Size
- [●] Equity Shares and in multiples of [●] Equity Shares thereafter
- Face Value
- ₹ 10 each
Business Model
The company operates through a project-based and managed services model, generating revenue from (1) IT Infrastructure solutions including data centre solutions with hyper-converged infrastructure and end-user computing services; (2) IT-enabled Services comprising managed services, multi-vendor support, IT facility management, network operations center services, security services, backup and disaster recovery services, and renewals; and (3) Cloud and Data Management Services including cloud workload migration. The company tailors solutions to specific customer needs and maintains long-standing relationships with customers, typically receiving orders through short-term purchase orders rather than long-term contracts. Revenue is generated through service delivery, project completion, and ongoing managed services contracts.
Business Segments
Offers data centre solutions with hyper-converged infrastructure (HCI) that integrate servers, storage, network components, backup and disaster recovery software, and virtualisation, as well as end-user computing services including desktop management, end-user support, and mobile device management
Comprises managed services involving monitoring, maintenance and support of IT systems; multi-vendor support services; IT facility management services; network operations centre services and security services; backup and disaster recovery services; and renewals
Includes migration of workload from data centers to cloud, providing cloud-based infrastructure and data management solutions
Distribution and systems integration of machine tools and automation solutions
Distribution of network and data security products and services
Provision of IT infrastructure services to multinational companies and overseas customers
Provides remote network management services allowing customers to have high-value services at fixed monthly costs.
Provides proactive protection and risk management for enterprise security round the clock. Offers Managed Security Service with highly specialized 24X7 information security surveillance service powered by advanced event correlation engine and incident handling technology.
Helps organisations mitigate their costs by taking a typical hardware device (such as a laptop, desktop, tablet, or mobile phone), bundling it with a variety of services and software, and offering it to a customer for a monthly subscription fee. Supports enterprise transformation, allowing clients to adopt a platform-based business model with plug-in, scalable, consumption-based services powered by analytics, cloud, and automation.
Provides Data Centre Solutions including servers, storage, networking components, collaboration solutions (CCTV, virtual conferences), and security solutions. Offers emergent technologies such as Hyper Converged Infrastructure (HCI), backup and disaster recovery software, and virtualisation. Also includes End-User Computing involving desktop management, end-user support, and mobile device management.
Comprises Managed Services (monitoring, maintenance and support of IT systems, backup and disaster recovery), Multi-Vendor Support Services (hardware and software support through annual maintenance contracts), IT Facility Management Services (on-site and remote support for system administration), Network Operations Centre Services (remote network management), Security Services, Renewals (annual subscription of software licenses), and recently ventured into Device-as-a-Service (DaaS) providing desktops, laptops, tablets, printers, scanners, smartphones, and servers bundled with software and managed services on a subscription basis.
Provides data analytics, business analytics, robotic process automation (RPA), cost management, Internet of Things (IoT), DevOps, containerisation and microservices on subscription basis. Services include Infrastructure as a Service (IaaS), Platform as a Service (PaaS), Software as a Service (SaaS), Function as a Service (FaaS), 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). Also provides cyber-security solutions including firewall, antivirus, and intrusion detection/prevention systems on cloud.
Product Manager – Cloud oversees the cloud practice of the Company and is responsible for managing Cloud Practice and mitigation of Enterprise to Cloud application, Networking, Security, SAP, Oracle, Databases Security, KMS, HSM, Transit Gateways.
Product Manager – Data Management manages the P&L for the department, providing pre-sales support as well as handling end-to-end project deliveries.
Products and solutions include Data Centre Solutions (servers, storage, networking components, collaboration solutions, security solutions, HCI, backup and disaster recovery, virtualization) and End-User Computing (desktop management, end-user support, mobile device management).
Services include Managed Services, Multi-Vendor Support Services (annual maintenance contracts), IT Facility Management Services (on-site and remote support), Network Operations Centre Services, Security Services, Renewals (annual software license subscriptions), and Device as a Service (DaaS).
Services include data analytics, business analytics, RPA, cost management, IoT, DevOps, containerization and microservices, and delivery of IaaS, PaaS, SaaS, FaaS, DBaaS, Storage as a Service, content delivery network, NaaS, SECaaS, BaaS, and MaaS. Also provides cyber-security solutions.
IT Infrastructure services
Cloud data management services
IT-enabled services
SWOT Analysis
Strengths
- • Deep expertise in specialized IT solutions across multiple business verticals(p.24)
- • Ability to tailor and customize offerings to specific customer needs(p.24)
- • Strong long-standing relationships with marquee customers across diverse industries(p.36)
- • Collaboration with technology partners to design and innovate customized solutions(p.24)
- • Multiple quality and compliance certifications demonstrating operational excellence(p.49)
- • Experienced promoter team with over 100 years cumulative experience(p.45)
- • Established operational track record with consistent revenue and profitability growth(p.65)
- • Strong dividend payout history demonstrating cash generation and financial stability(p.54)
- • Substantial cash and liquid investment position providing operational flexibility(p.68)
- • Low financial leverage with manageable debt levels relative to assets(p.50)
- • Planned establishment of NOC and SOC capabilities(p.120)
- • Diversified DaaS offering with subscription-based consumption model(p.120)
- • Significant capital deployment for managed services infrastructure(p.121)
- • Target large enterprise and BFSI segments with security focus(p.120)
- • Marquee customer base across diverse industries(p.225)
- • Deep expertise in tailored IT solutions with strong partner ecosystem(p.219)
- • Wide-ranging, diversified service portfolio across three verticals(p.226)
- • Strong and experienced promoter-led management team(p.226)
- • Consistent track record of financial growth(p.227)
- • High growth in cloud and data management services segment(p.227)
- • Industry certifications and quality standards(p.222)
- • Pan-India presence with multiple offices across key locations(p.233)
- • Promoter concentration with established leadership(p.274)
- • Long operational history and established market presence(p.292)
- • Industry certifications and compliance standards(p.292)
- • Geographically diversified operations(p.292)
- • Comprehensive service delivery model across multiple domains(p.292)
- • Multi-segment revenue diversification with strong Cloud & Data Management growth(p.378)
- • Consistent profitability with 8.22% PAT growth and 9.39% EBITDA margin(p.379)
- • Strong quality certifications and process maturity(p.357)
- • Healthy liquidity position with current ratio of 2.24(p.359)
- • Strong debt service coverage ratio of 8.82x(p.359)
Weaknesses
- • Heavy dependence on top 10 customers constituting 38.11% of revenue(p.34)
- • Reliance on few vendors/suppliers without long-term contracts(p.35)
- • High outstanding trade receivables representing 26.14% of revenue(p.36)
- • Significant number of delayed statutory filings with RoC and factual inaccuracies(p.41)
- • History of delayed payments of statutory dues by the Company(p.44)
- • Lack of long-term contracts with most customers exposing to revenue volatility(p.36)
- • High employee attrition rate averaging 32.78% over three years(p.40)
- • Lack of documentary evidence for educational qualifications of one Promoter-Director(p.44)
- • Heavy dependence on four promoters for majority shareholding creates concentration risk(p.98)
- • Reliance on leased properties for corporate operations without ownership security(p.53)
- • Inadequate insurance coverage relative to net assets limits loss protection(p.52)
- • Exposure to significant contingent liabilities from tax demands and guarantees(p.54)
- • Floating rate debt exposure to interest rate fluctuations affecting profitability(p.50)
- • Dependence on regulatory approvals and licenses that could be suspended or revoked(p.50)
- • Heavy upfront capital requirements not yet appraised by financial institutions(p.118)
- • Reliance on unexecuted vendor agreements with no definitive contracts(p.133)
- • Dependence on timely delivery and price stability from suppliers(p.133)
- • Potential cost overruns requiring additional funding sources(p.133)
- • Heavy concentration on top 10 customers for revenue(p.226)
- • Declining trade receivable collection efficiency(p.224)
- • Decline in return ratios over three-year period(p.224)
- • High concentration of shareholding among four promoters(p.274)
- • Reliance on existing customer base(p.292)
- • Loan dependence reflected in current borrowings(p.288)
- • Limited working capital position relative to operations(p.288)
- • Heavy reliance on top 10 customers for 38.11% of revenue(p.360)
- • Declining Return on Equity from 43.11% to 27.26% over three years(p.359)
- • Declining trade receivable turnover indicating collection challenges(p.359)
- • Provision for doubtful debts increased to ₹ 15.88 million in FY2024(p.326)
- • Revenue concentration with Maharashtra accounting for 91.87% of total revenue(p.358)
- • Heavy reliance on a select group of customers for majority of revenue(p.386)
- • Heavy reliance on a few vendors/suppliers with increasing expenses concentration(p.386)
- • Significant contingent tax liabilities pending against the company(p.383)
- • Material outstanding dues to creditors with significant concentration(p.391)
- • Significant unhedged foreign currency exposure(p.384)
Opportunities
- • Projected ITeS industry growth of 6-8% CAGR through Fiscal 2027(p.24)
- • Expansion into new line of business - devices as a service IT lifecycle management(p.39)
- • Growth driven by digitization and increased CRM volumes in banking and telecom sectors(p.24)
- • Plans to establish new office operations at Navi Mumbai Property to support expansion(p.37)
- • Significant order book of ₹1,012.02 million as of June 30, 2024 providing near-term revenue visibility(p.47)
- • Ability to expand globally to support international growth strategies(p.39)
- • Expansion into new geographic and customer segments through listing visibility(p.113)
- • Growth in device-as-a-service offerings and new technology solutions(p.113)
- • Infrastructure expansion through acquisition and setup of new facilities(p.113)
- • Growing demand for managed security services in India and globally(p.120)
- • Expansion into DaaS market with devices-as-a-service model(p.120)
- • Potential for international expansion beyond India(p.120)
- • General corporate growth opportunities beyond immediate capex deployment(p.133)
- • Expanding Device-as-a-Service (DaaS) in nascent but growing market(p.228)
- • High growth potential in cloud migration and data management services(p.229)
- • Global expansion opportunities, especially in exports-oriented IT sector(p.229)
- • Rapid expansion of IT hardware equipment and DaaS leasing market(p.202)
- • Indian public cloud market growing at 23-28% CAGR through FY2027(p.189)
- • Data centre industry expected to grow 30-35% CAGR over FY24-FY27(p.190)
- • Growth in infrastructure managed services market(p.292)
- • Expansion potential in cloud computing services(p.292)
- • Cross-industry service delivery expansion(p.292)
- • International market expansion via Singapore presence(p.292)
- • Growing Cloud and Data Management Services segment showing 91.5% YoY growth(p.378)
- • ITeS segment expansion with 27.3% revenue growth and expected 6-8% CAGR through Fiscal 2027(p.360)
- • Strong order book of ₹ 1,012.02 million provides revenue visibility(p.358)
- • Expansion into Device-as-a-Service (DaaS) pay-per-use model(p.356)
- • International presence and export potential beyond Singapore(p.360)
- • Expansion of Cloud Data Management Services segment with strong growth(p.386)
- • Growing ITeS segment showing consistent revenue expansion(p.386)
- • International geographical expansion opportunities(p.385)
Threats
- • Loss of top 10 customers could materially reduce revenue and profitability(p.34)
- • Dependence on few customer industries creates sectoral concentration risk(p.35)
- • Intense competitive environment with competitors having greater financial resources(p.41)
- • Risk of price escalation in vendor supplies without ability to pass through to customers(p.36)
- • Customer delays or defaults in payment could adversely impact cash flows(p.36)
- • Tender-based government contracts create pricing pressure and competition(p.41)
- • Regulatory changes and evolving compliance requirements in operating jurisdictions(p.22)
- • Risk of IT system failures or security breaches disrupting operations(p.43)
- • Exposure to foreign currency fluctuations in revenues and expenses(p.56)
- • Potential slowdown in Indian and global economic growth affecting demand(p.59)
- • Rising employee compensation costs eroding competitive advantage(p.59)
- • Adverse geopolitical developments impacting trade and operations(p.59)
- • Risk of operating in jurisdictions with uncertain regulatory interpretations(p.50)
- • Data privacy and regulatory compliance obligations increasing operating expenses(p.53)
- • Market volatility and potential illiquidity affecting share price post-listing(p.57)
- • Inability to obtain additional financing on favorable terms constraining growth(p.54)
- • Quotation validity periods expire before deployment, exposed to price volatility(p.133)
- • Market-dependent technology advancements may require equipment modifications(p.133)
- • Regulatory requirements and approvals needed for government operations(p.133)
- • Project implementation delays could impact fiscal 2025 deployment schedule(p.118)
- • Intense competition from larger multinational and domestic IT players(p.237)
- • Increasing cyber-attack threats requiring continuous security updates(p.202)
- • Rapid technological obsolescence requiring continuous product innovation(p.188)
- • Data localisation regulations requiring local infrastructure investment(p.190)
- • Price volatility in IT hardware and equipment costs(p.188)
- • Regulatory compliance requirements across data protection laws(p.239)
- • Competition from larger IT service providers(p.276)
- • Technology obsolescence risk in IT infrastructure(p.292)
- • Dependency on foreign exchange for international operations(p.284)
- • Regulatory and compliance risks in multiple jurisdictions(p.280)
- • Contingent GST and Income Tax demands totaling ₹ 73.23 million(p.328)
- • Exposure to foreign exchange volatility with ₹ 52.47 million net asset exposure(p.339)
- • Dependence on specific technology partners Dell and Fortinet(p.354)
- • Declining ROCE from 45.25% to 28.42% indicating capital efficiency concerns(p.359)
- • Increasing finance costs from ₹ 10.13 million to ₹ 20.50 million with rising interest obligations(p.327)
- • Operating in intensely competitive environment with expected continued competition(p.385)
- • Exposure to interest rate risk on borrowings(p.384)
- • Exposure to foreign exchange volatility on unhedged foreign currency transactions(p.384)
- • Significant credit impairment and doubtful receivables(p.384)
- • Material tax proceedings and regulatory disputes(p.389)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Ajay Baliram Sawant | Promoter/Promoter Selling Shareholder/Chairman and Managing Director | 24.43% | — |
| Jayesh Manharlal Shah | Promoter/Promoter Selling Shareholder/Whole-Time Director | 24.43% | — |
| Umesh Navnitlal Shah | Promoter/Promoter Selling Shareholder/Whole-Time Director | 24.43% | — |
| Ujwal Arvind Mhatre | Promoter/Promoter Selling Shareholder/Whole-Time Director | 24.43% | — |
| Ajay Baliram Sawant | Promoter | 24.43% | — |
| Jayesh Manharlal Shah | Promoter | 24.43% | — |
| Umesh Navnitlal Shah | Promoter | 24.43% | — |
| Ujwal Arvind Mhatre | Promoter | 24.43% | — |
| Ajay Baliram Sawant | Promoter/Chairman and Managing Director | — | — |
| Umesh Navnitlal Shah | Promoter/Whole Time Director | — | — |
| Ujwal Arvind Mhatre | Promoter/Whole Time Director | — | — |
| Jayesh Manharlal Shah | Promoter/Whole Time Director | — | — |
| Ajay Baliram Sawant | Promoter | 24.43% | — |
| Umesh Navnitlal Shah | Promoter | 24.43% | — |
| Ujwal Arvind Mhatre | Promoter | 24.43% | — |
| Jayesh Manharlal Shah | Promoter | 24.43% | — |
| Ajay Sawant | Managing Director and CEO / Promoter | — | — |
| Jayesh Shah | Director / Promoter | — | — |
| Ujwal Mhatre | Director / Promoter | — | — |
| Umesh Shah | Director / Promoter | — | — |
| Ajay Baliram Sawant | Promoter Selling Shareholder | — | — |
| Umesh Navnitlal Shah | Promoter Selling Shareholder | — | — |
| Ujwal Arvind Mhatre | Promoter Selling Shareholder | — | — |
| Jayesh Manharlal Shah | Promoter Selling Shareholder | — | — |
Leadership
Ajay Baliram Sawant · Chairman and Managing Director
Umesh Navnitlal Shah · Whole-Time Director
Ujwal Arvind Mhatre · Whole-Time Director
Jayesh Manharlal Shah · Whole-Time Director
Sunil Kumar Arora · Chief Financial Officer
Nayana Akhil Nair · Company Secretary and Compliance Officer
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
Orient Technologies IPO FAQs
What is the lot size of Orient Technologies IPO?
The minimum lot size of Orient Technologies IPO is 72 shares. One lot costs ₹14,832 at the cut-off price.
When does Orient Technologies IPO open and close?
Orient Technologies IPO opened for subscription on 21 Aug 2024 and closed on 23 Aug 2024.
What is the listing date of Orient Technologies IPO?
Orient Technologies IPO listed on 28 Aug 2024.