Orient Technologies, a prominent player in the information technology (IT) sector, has launched its Initial Public Offering (IPO), which opened on August 21 and will close on August 23.
The IPO received a robust response from investors on its first day. By the end of the initial subscription period, approximately 31% of the total offering had been subscribed. This indicates a strong interest from investors right from the start.
Retail investors, who are everyday individual investors, demonstrated substantial enthusiasm. The retail portion of the IPO was subscribed to 53%, meaning more than half of the shares allocated to this group were already taken. Non-institutional investors (NIIs), including high-net-worth individuals and companies, also showed interest, with 19% of their portion subscribed. However, the allocation for qualified institutional buyers (QIBs), such as mutual funds and insurance companies, had not yet been fully booked.
Founded in 1997, Orient Technologies has built a strong reputation in the IT industry by offering a diverse range of IT solutions. These include IT Infrastructure, IT Enabled Services (IteS), Cloud solutions, and Data Management services.
Orient Technologies’ IPO has generated significant interest, and the Grey Market Premium (GMP) reflects this enthusiasm. Currently, the GMP stands at +₹30, indicating that shares of Orient Technologies are trading at a premium of ₹30 in the grey market, as reported by investorgain.com.
Given the upper end of the IPO price band at ₹206, the estimated listing price for Orient Technologies shares is projected to be around ₹236 each. This reflects a 14.56% premium over the issue price, suggesting a strong positive sentiment among investors.
The GMP has demonstrated an upward trend over the past 13 sessions, indicating increasing investor confidence in the IPO’s performance. Analysts from investorgain.com report that the GMP has fluctuated between a low of ₹0 and a high of ₹55, highlighting a generally optimistic outlook for the stock’s debut.
The price band for Orient Technologies’ IPO is set between ₹195 and ₹206 per share, with a face value of ₹10 per share. The company has already secured ₹64.43 crores from anchor investors prior to the public offering, indicating strong interest from large institutional investors.
The IPO allocation is structured with 50% of shares reserved for QIBs, 15% for NIIs, and 35% for retail investors. The share allocation will be finalized by August 26, with refunds processed on August 27. Shares will be credited to investors’ demat accounts on the same day as the refunds, and the shares are expected to be listed on both BSE and NSE on January 29.
Final Thoughts
Orient Technologies’ IPO has kicked off with strong interest, particularly from retail investors, and the healthy GMP reflects positive market sentiment. As the subscription period continues, there is potential for increased participation, especially from QIBs. Prospective investors should evaluate the company’s growth potential, market conditions, and their own investment goals before making a decision.
