Orient Technologies – About the Company
Orient Technologies is one of the pioneer group providing various solutions in field of Information technology (IT) having headquarters in Mumbai and presence across pan India delivers cloud base infrastructure services. It has collaboration with major giants like dell, Fortinet, Nutanix to provide advanced tailor made solutions. It has global presence too through its Singapore office.
Orient Technologies IPO Objectives
The IPO consists of fresh issue and an offer for sale by its existing shareholders, which have been described below.
- The OFS comprises up to 4,600,000 equity shares, aggregating up to Rs. [●] million.
- The fresh issue comprises up to [●] equity shares aggregating up to Rs. 120 crore. Out of the total fresh issue, funding of capital expenditure requirements will cost an estimated Rs. 796.52 million; acquisition of office premises at Navi Mumbai will cost approximately Rs. 103.48 million; and the rest will be for general corporate purposes.
Orient Technologies IPO Details:
| IPO Open Date | -- |
| IPO Close Date | -- |
| Basis of Allotment | -- |
| Listing Date | -- |
| Face Value | -- |
| Price | -- |
| Lot Size | -- |
| Total Issue Size | [.] shares |
| (aggregating up to Rs XXX.00 crore) | |
| Fresh Issue | [●] Equity Shares |
| aggregating up to Rs 1,200 million | |
| Offer For Sale | 4,600,000 Equity Shares |
| aggregating up to Rs. [●] million | |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE & NSE |
| QIB Shares Offered | -- |
| Retail Shares Offered | -- |
| NII (HNI) Shares Offered | -- |
Orient Technologies IPO Issue Price & Size
The issue size of the IPO hasn’t been declared yet but it will be updates as and when released. The overall issue size of the IPO is Rs XXXX, out of which [●] Equity Shares, aggregating up to Rs 120 cr, comprise of fresh issuance, and the remaining Rs XXXX will be offered for sale by shareholders.
Orient Technologies IPO Launch Date
Orient Technologies IPO will be open on (DATE) and close on the (DATE). All types of investors can bid between these dates through their eligible categories.
Orient Technologies Financial Statements:
| Particulars | 6 months ended September 30, 2023 | Fiscal 2023 | Fiscal 2022 | Fiscal 2021 |
| Revenue from operations | 2663.11 | 5351.02 | 4674.43 | 2473.35 |
| Gross Profit | 496.5 | 1025.78 | 862.08 | 311.04 |
| Gross Profit Margin | 18.65% | 19.17% | 18.44% | 12.58% |
| EBITDA | 227.98 | 486.44 | 458.25 | 31.49 |
| EBITDA Margin | 8.56% | 9.09% | 9.80% | 1.27% |
| Profit before tax (PBT) | 217.66 | 519.54 | 445.54 | 4.81 |
| Profit after tax (PAT) | 163.95 | 382.98 | 334.96 | 1.32 |
| PAT Margin | 6.16% | 7.16% | 7.17% | 0.05% |
| ROCE (In % | 13.21 | 31.45 | 45.25 | 0.94 |
| Inventory turnover ratio (In times) | 18.3 | 39.77 | 42.27 | 49.49 |
| DSCR (In times) | 3.61 | 4.53 | 26.45 | 0.53 |
| Return on net assets (In %) | 11.3 | 29.73 | 35.59 | 0.22 |
| ROE (In %) | 11.97 | 34.36 | 43.11 | 0.22 |
| Current ratio (In times) | 2.28 | 2.21 | 1.9 | 1.8 |
| Trade receivable turnover ratio (In times) | 1.99 | 5 | 6.11 | 3.51 |
| Net capital turnover ratio (In times) | 1.99 | 4.54 | 5.6 | 4.97 |
Orient Technologies Financial Performance
Currently, the company has three business verticals
- IT Infrastructure
- IT Enabled Services
- Cloud and Data Management Services.
| Business segment | 6M ended Sep 30, 2023 | Fiscal 2023 | Fiscal 2022 | Fiscal 2021 |
| IT infra products and Ser. | 1270.32 | 3493.39 | 3294.63 | 1388.75 |
| Cloud and DMS | 788.41 | 805.56 | 8581.44 | 396.56 |
| ITES Services | 604.38 | 1052.07 | 798.37 | 688.04 |
| Total | 2663.11 | 5351.02 | 4674.43 | 2473.38 |
IT infra sector is the largest revenue generating business vertical, accounting for 65.28%, 70.48%, and 56.15% in FY23, FY22, and FY21.
Revenue from operations increased from Rs. 4,674.43 million in FY22 to Rs. 5,351.02 million in FY23 due to an increase in revenue from IT infrastructure segment, revenue from Cloud and DMS from Rs. 581.44 million in FY22 to Rs. 805.56 million in FY23, and revenue from ITES services from Rs. 798.37 million in FY22 to Rs. 1,052.07 million in FY23.
Profit after tax (PAT) increased by 14.35% from Rs. 334.93 million in Fiscal 2022 to Rs. 382.98 million in Fiscal 2023.
Net profit before tax and exceptional items was Rs. 519.54 million, our operating cash flow before working capital changes stood at Rs. 501.73 million.
Net cash flow generated from operating activities in Fiscal 2023 was Rs. 19.54 million.
Orient Technologies IPO Promoters & Shareholding of the Company
| Sr. No. | Name of the Promoter | No. of Equity Shares | % of the pre Offer Equity Share capital (%) |
| 1 | Ajay Baliram Sawant | 87,50,000.00 | 24.43 |
| 2 | Umesh Navnitlal Shah | 87,49,900.00 | 24.43 |
| 3 | Ujwal Arvind Mhatre | 87,49,800.00 | 24.43 |
| 4 | Jayesh Manharlal Shah | 87,49,900.00 | 24.43 |
| Total | 3,49,99,600.00 | 97.42% |
Ajay Baliram Sawant, Umesh Navnitlal Shah, Ujwal Arvind Mhatre and Jayesh Manharlal Shah are promoters of company. Ajay Sawant is Promoter, Chairman and MD of the Company, rest three people are Promoter and Whole Time Director in Company.
Why Invest in Orient Technologies IPO?
Either applying with small subscription money or bidder for greater number of shares, one should check company’s fundamentals that help to know its financial performance and competitive strength that drives its business growth. Fundamental analysis apart from financial and competitive strength, also help you to know the risk factors that can affect the business operations and future prospects of the company. After evaluating the variables such strength weakness, financials, you may strike a balance and decide to invest or not invest in an IPO.
Also Read: Difference Between Fundamental Analysis and Technical Analysis
In a listed company, apart from fundamental analysis, you can also perform the technical analysis, which also helps to know the share price valuation and movement as per the performance of the company. However, for an unlisted company, or company that introduced the IPO, you have only options to analyse the fundamentals of the company and compare the share price valuation from its listed peer group companies.
Strength of Orient Technologies
Marquee customer base across diverse Customer Industries
Company’s ability to tailor and customize products and services to suit the requirements of customers has been a key factor in consistent growth. As of December 31, 2023, they had a diverse base of customers across public and private sector entities, including BFSI, IT, ITeS, healthcare/pharmaceutical, and more. The company has established strong relationships with customers such as Coal India, Mazagon Dock, D’Décor, Jayothy Labs, ACG, Integreon, Bluechip, Tradebulls, VJS Bank, VKS Bank, and Joint Commissioner of Sales Tax (GST Mahavikas), Mumbai.
Wide ranging and diversified IT solutions and offerings
Product and service offered by the company can be classified into 3 business verticals; IT infrastructure products and services, IT infrastructure products and services and Cloud and Data Management Services.
- IT Infrastructure comprises Data Centre Solutions and End-User Computing is the largest revenue generating segment. Their IT Infrastructure business has grew at a CAGR of 58.60% between Fiscal 2021 and Fiscal 2023.
- ITeS include Managed Services, Multi-Vendor Support Services, IT Facility Management Services, Network Operations Centre Services, Security Services, and Renewals and that segment grew at CAGR of 23.66% between Fiscal 2021 and Fiscal 2023.
- Products and services in Cloud and Data Management vertical comprise data analytics, business analytics, RPA, IOT, DevOps, and containerisation and microservices on a subscription basis. They also provide various services such as IaaS, PaaS, SaaS, FaaS / Serverless Computing, DBaas, ,etc.
Orient Technologies Risk Factors
Heavily reliant on our top 10 customers
| Customer | 6M ended Sep 30, 2023 | Rev in Fiscal 2023 | Rev in Fiscal 2022 | Rev in Fiscal 2021 |
| Customer 1 | 18.26 | 5.85 | 13.45 | 3.84 |
| Customer 2 | 4.69 | 5 | 4.22 | 3.76 |
| Customer 3 | 3.14 | 4.28 | 3.96 | 3.09 |
| Customer 4 | 2.25 | 4.2 | 3.74 | 3 |
| Customer 5 | 2.22 | 3.84 | 3.62 | 2.25 |
| Customer 6 | 2.03 | 2.07 | 2.91 | 2.18 |
| Customer 7 | 1.6 | 1.88 | 1.88 | 2.16 |
| Customer 8 | 1.49 | 1.88 | 1.83 | 1.98 |
| Customer 9 | 1.43 | 1.67 | 1.83 | 1.84 |
| Customer 10 | 1.37 | 1.6 | 1.68 | 1.82 |
| Total | 38.49 | 32.35 | 39.1 | 25.91 |
Company's top ten clients account for a significant portion of its total revenue, with each client contributing significantly to the company's overall financial health.
Heavily relied on few vendors and suppliers
The business model involves significant purchases of IT hardware, software, and cloud space, relying heavily on a few vendors to cater to customer needs and provide tailored IT solutions. The cost of purchasing these items from top 10 vendors constituted 66.46%, 69.12%, 68.18%, and 47.64% of total expenses.
Orient Technologies IPO Grey Market Premium (GMP)
GMP premium is the price over the issue price of an IPO that an investor is ready to pay in the grey market. GMP is determined by the speculator as per the demand and supply of shares in the grey market. And as per the demand GMP keeps fluctuating till the listing day.
Also Read: What is Grey Market Premium in IPO: How is GMP Calculated & Reliable
As per the various online sources, the Orient Technologies IPO GMP is hovering at Rs XXX, which shows the share of Orient Technologies is likely to list at Rs XXXX with premium or discount over the issue price. GMP is an unofficial ecosystem, hence it is not a reliable factor to know the intrinsic value of share of any company, as there are various factors that affect the stock market and individual stock prices.
