Orient Technologies Limited IPO

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Orient Technologies Limited are a rapidly growing IT solutions provider. Over the years, they have developed deep expertise in creating and delivering specialized products and services across several key business verticals, which include IT Infrastructure, IT Enabled Services (ITeS), and Cloud and Data Management Services.

Business Verticals

i. IT Infrastructure:
Their IT infrastructure offerings encompass Data Centre Solutions and End-User Computing, providing robust and scalable solutions tailored to meet the evolving needs of our clients.
ii. IT Enabled Services (ITeS):
They offer a comprehensive suite of IT-enabled services, including Managed Services, Multi-Vendor Support, IT Facility Management, Network Operations Centre Services, Security Services, and Renewals. These services are designed to ensure seamless IT operations and enhanced business efficiency for our clients.
iii. Cloud and Data Management Services:
Their Cloud and Data Management Services include the migration of workloads from traditional data centers to the cloud, enabling businesses to leverage the flexibility, scalability, and cost-efficiency of cloud computing.

Clientele and Industry Reach

Their customized IT solutions have attracted a diverse range of prominent clients, including leading public and private sector entities across industries such as Banking, Financial Services, and Insurance (BFSI), IT, ITeS, and healthcare/pharmaceuticals. Their commitment to understanding and meeting the unique needs of each client has enabled us to build and maintain long-term, successful relationships.

Long-Term Relationships

They prioritize nurturing client relationships, aiming to transform every engagement into a long-term partnership. Their ongoing efforts to understand client needs and deliver holistic, customized IT solutions have positioned them as a trusted partner across various industries.

Conclusion

Their expertise, combined with strong collaborative efforts with technology partners, allows them to provide innovative and customized IT solutions that drive success for their clients. By staying ahead of industry trends and continuously refining their service offerings, they are well-equipped to forge long-term, successful relationships with their clients and capitalize on new business opportunities.

Objects of the Orient Technologies Limited IPO:

The Company proposes to utilise the Net Proceeds towards the following objects: i. Acquisition of office premise at Navi Mumbai situated at unit no 1201, 1202, 1203, and 1204, respectively which are situated at Plutonium Business Park, Trans-Thana Creek Industrial Area, Turbhe MIDC, District Thane, Navi Mumbai (collectively, Navi Mumbai Property); ii. Funding capital expenditure requirements for: a.Purchase of equipment for setting up of Network Operating Centre (NOC) and Security Operation Centre (SOC) at Navi Mumbai Property; and b.Purchase of equipment and devices to offer Devise-as-a-Service (DaaS)offering.(collectively, Capital Expenditure). iii. General corporate purposes. Total number of shares issue :- i. Fresh issue is 5,825,243 shares, ii. Offer for sale is 4,600,000 shares.
DRHP of Orient Technologies Limited IPO
RHP of Orient Technologies Limited IPO

Orient Technologies Limited IPO Details:

Open Date: Aug 21 2024
Close Date: Aug 23 2024
Total Shares: 10,425,243
Face Value: ₹ 10 Per Equity Share
Issue Size: 214.76 Cr.
Lot Size: 72 Shares
Issue Price: ₹ 195 - 206 Per Equity Share
Listing At: NSE,BSE
Listing Date: Aug 28 2024

Promoters And Management:

Ajay Baliram Sawant, aged 56 years, is the Chairman and Managing Director and one of the Promoters of the Company. He completed his Bachelor of Engineering in Electronics from Ramrao Adik College of Engineering, University of Bombay, in 1988. He is currently a director on the board of Align Digiventures Private Limited and Code Positive Private Limited, as well. He is one of the founders of the Company and has more than 25 years of experience in information and technology. He oversees the operations, sales, finance and human resource departments of the Company. Umesh Navnitlal Shah aged 54 years is one of the Whole Time Directors and Promoters of the Company. He completed his Bachelor of Engineering in Computer Science from Ramrao Adik Institute of Technology College of Engineering, University of Bombay in 1992. He is currently a director on the board of Align Digiventures Private Limited and Code Positive Private Limited, as well. He is one of the founders of the Company and has more than 25 years of experience in information and technology. He oversees government business and cloud services part of the business. Ujwal Arvind Mhatre aged 55 years is one of the Whole Time Directors and Promoters of the Company. He has completed his Diploma in Industrial Electronics form Bhausaheb Vartak Polytechnic Maharashtra State Board of Technical Education in 1987. He has over 25 years of experience in information technology industry. He is currently a director on the board of Align Digiventures Private Limited and Code Positive Private Limited as well. He oversees client acquisition.

Financials of Orient Technologies Limited IPO:

Particulars ( In Crores )
2022
2023
2024
Revenue from Operations 467 535 603
Other Income 2 7 4
Total Revenue 469 542 607
Purchase of stock-in-trade 364 399 457
Changes in inventories -9 5 -5
Direct expenses 26 28 40
Employees Benefit Expenses 25 34 40
Other Expenses 16 20 14
EBITDA 48 56 61
OPM (%) 10.13% 10.25% 9.98%
Depreciation & Amortisation 2 2 4
EBIT 46 54 57
Finance Cost 1 2 2
PBT 45 52 55
Tax 11 14 13
PAT 33 38 41
NPM (%) 7.14% 7.07% 6.83%
No.of Shares 4.16 4.16 4.16
EPS 8.04 9.19 9.95

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
Orient Technologies Limited 603 41 9.95 20.7 206 858
Dynacons Systems & Solutions Limited 1,024 54 42.44 33.7 1,526 1,940
HCL Technologies Limited 1,09,913 15,710 57.86 27.7 1,677 4,55,027
Wipro Limited 89,760 11,112 21.14 24.5 523 2,73,755
LTIMindtree Limited 35,517 4,585 154.72 36.9 5,698 1,68,748
Allied Digital Services Limited 687 46 8.29 25.8 222 1,230
Dev Information Technology Limited 164 9 4.13 25.7 126 283
Tech Mahindra Limited 51,996 2,397 24.14 62.9 1,617 1,58,143
Silicon Rental Solutions Limited 63 13 12.56 13.8 174 179
* All the data is as per FY24.

Recommendation on Orient Technologies Limited IPO:

1. Orient Technologies Limited core business verticals include IT Infrastructure, IT Enabled Services (IteS), and Cloud and Data Management Services. i. IT Infrastructure Their IT Infrastructure vertical offers solutions for optimizing data centers and end-user computing, ensuring secure and scalable IT environments. They partner with Dell, Fortinet, and Nutanix to deliver tailored products and services. ii. IT Enabled Services (IteS) The IT Enabled Services (IteS) vertical is key to their business, providing managed services like multi-vendor support, IT management, network operations, and security. These services help clients efficiently manage infrastructure, reduce costs, and enhance security, with consistent monitoring and optimization. iii. Cloud and Data Management Services Their Cloud and Data Management Services facilitate the migration of workloads to the cloud, offering businesses enhanced flexibility, scalability, and cost-efficiency. They work with technology partners to deliver customized cloud solutions tailored to clients' specific needs and goals. 2. Customization and Collaboration Their key strength lies in customizing offerings to meet unique customer needs. Collaborations with partners like Dell, Fortinet, and Nutanix enhance this, enabling the delivery of tailored and effective IT solutions. 3. Customer Base Their customized offerings have built a diverse customer base across industries like BFSI, IT, IteS, and healthcare. Through continuous engagement, they’ve established long-term relationships with leading public and private entities, enabling them to meet evolving needs, offer holistic services, and identify new collaboration opportunities. 4. Competition They operate in a highly competitive industry with a diverse range of players, from large multinational corporations to mid-sized and small companies. Their competitors include established Indian multinationals, domestic firms, and transnational corporations. Some of their key competitors across their business verticals include: i. Dynacons Systems & Solutions Limited                         ii. Wipro Limited iii. HCL Technologies Limited                                             iv. LTIMindtree Limited v. Allied Digital Services Limited                                        vi. Dev Information Technology Limited vii. Tech Mahindra Limited                                                viii. Silicon Rental Solutions Limited 5. The Revenue has Increased from Rs.467 Crores in FY22 to Rs.603 Crores in FY24. 6. The EBITDA has Increased from 48 Crores in FY22 to 61 Crores in FY24. 7. The PAT has Increased from 33 Crores in FY22 to 41 Crores in FY24. 8. As per FY24, CFO/EBITDA is 0.96, and EPS is 9.95, 9. Market Capitalization is 858 Crores and P/E is 20.7x based on FY24.

Lead Manager of Orient Technologies Limited IPO:

  1. Elara Capital (India) Private Limited

Registrar of Orient Technologies Limited IPO:

  1. Link Intime India Private Limited

Company Address:

Orient Technologies Limited Off No-502, 5th Floor, Akruti Star, Central Road, MIDC, Opp. Akruti Point Central Andheri (East), Mumbai �400093 Phone: +91 22 4292 8777 Email: complianceofficer@orientindia.net Website: https://www.orientindia.in/

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