Orient Technologies IPO booked 16.95 times on day 2; retail, HNIs lead the show

Orient Technologies IPO

Orient Technologies' initial public offering continued to garner strong interest from investors even on the second day of bidding, i.e. August 22. Investors picked 12.63 crore equity shares so far on Thursday, higher by 16.95 times to the offer size of 74.49 lakh equity shares, the subscription data on the exchanges showed.

The IT solutions provider targets to raise Rs 214.76 crore through its maiden public issue which is a mix of fresh issuance of equity shares worth Rs 120 crore, and an offer-for-sale of 46 lakh equity shares worth Rs 94.76 crore by promoters.

The price band for the public issue, which closes on August 23, is Rs 195-206 per share.

Retail investors took the lead amongst participants, buying 24.49 times the allotted quota, followed by non-institutional investors (high net worth individuals) who picked 20.97 times the portion set aside for them. The part set aside for qualified institutional buyers was subscribed 0.16 times.

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The Mumbai-based cloud and data management services provider has already mobilised Rs 64.4 crore from anchor investors including Pine Oak Global Fund, Saint Capital Fund, SB Opportunities Fund, and Elara Capital (Mauritius) on August 20, a day before the issue opening.

Orient Technologies will spend net fresh issue proceeds for the acquisition of office premises at Navi Mumbai, purchase of equipment for setting up of network operating center (NOC) and security operation center (SOC) at Navi Mumbai property, and purchase of equipment and devices to offer Devise-as-a-Service (DaaS) offering. The remaining funds will be used for general corporate purposes.

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The company provides IT infrastructure, IT-enabled services, and cloud & data management services to diverse customer industries such as banking, financial services, and insurance (BFSI), IT, IteS, and healthcare or pharmaceutical.