10 ESSENTIAL INSIGHTS ABOUT ORIENT TECHNOLOGIES IPO
Published By Moushumi Mahanta | 20 Aug, 2024
IPO Proceeds Utilization
The company plans to use the IPO proceeds to acquire office space in Navi Mumbai, set up a Network Operating Centre and Security Operation Centre, and fund its Device-as-a-Service segment.
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Company Overview
Orient Technologies, an IT solutions provider established in 1997, offers products and services in IT infrastructure, IT-enabled services (ITeS), and cloud and data management.
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DaaS Segment Expansion
The company has recently entered the DaaS market, offering devices like desktops, laptops, and servers on a subscription basis, expecting growth in this nascent and fragmented market.
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Geographic Focus
While the company primarily operates in India, it is looking to expand its international presence. Currently, it has a branch in Singapore and caters to multinational clients.
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Diverse Clientele
Orient Technologies serves a broad range of clients across various industries, including public sector entities like Coal India and Mazagon Dock, as well as private sector clients in BFSI, healthcare, and IT sectors.
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Competitive Landscape
The company faces stiff competition from large Indian multinationals, domestic firms, and smaller regional players, including competitors like Wipro, HCL Technologies, and Tech Mahindra.
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Financial Performance
The company has seen strong revenue growth, with a CAGR of 47.09% from Fiscal 2021 to 2023. For Fiscal 2023, revenue was ₹535 crore, with a profit after tax of ₹38 crore.
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Key Risks
Heavy reliance on top 10 customers, significant employee-related expenses, and intense competition are identified as major risks that could impact profitability and market position.
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IPO Allotment and Listing
The IPO allotment is expected on August 26, 2024, with shares set to list on the NSE and BSE on August 28, 2024.
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Lead Managers and Registrars
Elara Capital (India) Private Limited is the book-running lead manager for the IPO, with Link Intime India Private Ltd. serving as the registrar.