Orient Technologies seeks IPO approval with SEBI filing

22 Feb 2024 , 10:45 AM

Orient Technologies Ltd., a provider of information technology (IT) solutions, has submitted preliminary documents to SEBI in order to seek capital through an initial public offering (IPO). According to the Draft Red Herring Prospectus (DRHP) submitted on Tuesday, the inaugural share-sale consists of a mix of a new issuance of ₹120 Crore and an Offer For Sale of up to 46 lakh equity shares by promoters.

Ajay Baliram Sawant, Umesh Navnitlal Shah, Ujwal Arvind Mhatre, and Jayesh Manharlal Shah are the ones dumping shares in the OFS.

A portion of the ₹79.65 Crore in proceeds from the new issuance will be utilized for general corporate purposes, ₹10.35 Crore for the purchase of office space in Navi Mumbai, and ₹79.65 Crore for supporting capital expenditure requirements.

The company has accumulated extensive knowledge in developing products and solutions for specialized fields in IT Infrastructure, IT Enabled Services (IteS), Cloud, and Data Management Services throughout the years.

Orient Technologies’ clientele as of December 31, 2023, is broad and includes both public and private sectors. These sectors include, but are not limited to, banking, financial services, insurance (BFSI), information technology (IT) & ITeS, healthcare, and pharmaceuticals.

Among its clients are Mazagon Dock, D’Decor, Jyothy Labs, ACG, Integreon, Bluechip, Tradebulls, and Coal India. The company’s main market is India, where it maintains sales and service centres in Navi Mumbai, Pune, Ahmedabad, New Delhi, Bengaluru, and Chennai, among other places.

It moreover maintains a branch office in Singapore. The company’s profit after taxes increased to ₹38.30 Crore in fiscal 2023 from ₹33.49 Crore in the previous financial year, and its revenue from operations jumped to ₹535.10 Crore from ₹467.44 Crore in fiscal 2021–2022.

During the IPO, Elara Capital (India) Private Ltd is the only book-running lead manager. It is suggested that the equity shares be listed on the NSE and BSE.

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