Orient Technologies Limited IPO: Check IPO Date, Lot Size, Price & Details

About the company:

Orient Technologies Ltd. (OTL), an IT solutions provider based in Mumbai, Maharashtra, has been operating since its incorporation in 1997. Over time, the company has developed significant expertise in creating specialized products and solutions across various business verticals. These include IT Infrastructure, where offerings encompass Data Centre Solutions and End-User Computing; IT Enabled Services (ITeS), which provide Managed Services, Multi-Vendor Support, IT Facility Management, Network Operations Centre Services, Security Services, Renewals; Cloud and Data Management Services, focused on migrating workloads from data centers to the cloud. OTL has been able to build a strong customer base across diverse industries, including banking, financial services, insurance (BFSI), IT, ITeS, healthcare, and pharmaceuticals. The company is committed to nurturing client relationships to foster long-term partnerships. By continuously engaging with customers to understand their needs and providing more comprehensive services, OTL has been able to identify new opportunities for collaboration. Additionally, the company keeps a close watch on developments in its business segments to stay updated on emerging trends and seize new business opportunities.

IPO Details:

The objective of the fresh issue:

The company intends to utilize the net proceeds received from the fresh issue towards:

• Acquiring office premises in Navi Mumbai.
• Funding capital expenditures for the purchase of equipment to establish a Network Operating Centre (NOC) and Security Operations Centre (SOC) at the Navi Mumbai property, as well as acquiring equipment and devices to support the Device-as-a-Service (DaaS) offering.
• General corporate purposes.

Key Strengths and Opportunities:

• Orient Technologies has consistently expanded its business by effectively tailoring its products and services to meet customer needs. Over time, the company has cultivated significant expertise in developing specialized solutions in areas like Hyper-Converged Infrastructure (HCI), End-User Computing, and Robotic Process Automation. Its operations are centered on delivering advanced technological solutions, supported by partnerships with leading technology companies such as Dell, Fortinet, and Nutanix. These collaborations enhance Orient Technologies' ability to design innovative products and offer services that are precisely aligned with customer requirements.
• The company offers a broad and diverse range of products and services, organized into three key verticals: IT Infrastructure, ITeS, and Cloud and Data Management Services. Recently, it has expanded into the “Device as a Service” (DaaS) market. Through DaaS, the company provides devices such as desktops, laptops, tablets, printers, scanners, smartphones, servers, software, and managed services, all on a subscription-based, pay-per-use model. While the DaaS market in India is still in its early stages and remains fragmented, the company anticipates leveraging its ongoing experience in product development to build scale in this emerging segment.
• The company’s business operations are currently focused in India, with the majority of its revenue coming from the domestic market. Although it serves a wide range of multinational and transnational corporations and has a branch in Singapore, its international operations have yet to see significant expansion. It intends to expand its geographic footprint and cater to a broader customer base globally.

Risks:

• In Fiscal 2024, around 38% of the company’s total operational revenue was generated from its top 10 customers. This indicates a heavy reliance on these key customers, and any loss of these customers or a significant decrease in their purchases could have a material adverse impact on the business of the company.
• The company’s future success hinges on its ability to effectively execute its business and growth strategies. Additionally, the company is in the process of adopting a new line of business. If it fails to successfully implement these strategies or to operate effectively in the new business line, it could negatively impact its operational results.
• The company relies heavily on a limited number of vendors and suppliers, and typically does not engage in long-term contracts or agreements with them. The loss of any of these vendors or suppliers, or a significant increase in their prices, could have a materially adverse impact on the company’s business and revenue.

Financial Snapshot: