Orient Technologies IPO: Grey market premium holds strong ahead of Wednesday launch
IPO) of Orient Technologies will open for subscription on Wednesday. Ahead of the issue opening, the company's shares are commanding a healthy GMP of Rs 55.
The company has priced the IPO in the range of Rs 195-206 apiece, and if we consider the upper price band, the shares are trading with a premium of 27% to the issue price.
If the current trends sustain, the stock is expected to fetch strong listing gains for investors.
However, it is important to note that grey market premiums are just an indicator as to how the company's shares are stacked up in the unlisted market and are subject to change rapidly.
Orient Technologies is planning to raise Rs 215 crore through the IPO, which includes a fresh equity sale of Rs 120 crore and an offer for sale (OFS) of 46 lakh shares. The anchor investors' allocation for the IPO, which closes on August 23, will be done later on Tuesday.
Under the OFS, promoters Ajay Baliram Sawant, Umesh Navnital Shah, Ujwal Arvind Mhatre and Jayes Manharlal will be offloading their part stakes.
In the IPO, about 50% in the public offer is reserved for qualified institutional buyers, 35% for retail investors and the rest 15% for non-institutional investors.
The proceeds from the fresh issue for funding its capital expenditure requirements, acquisition of office premises at Navi Mumbai and general corporate purposes.
Over the years, Orient Tech has developed deep expertise in creating products and solutions for specialised disciplines across IT infrastructure, IT enabled services (IteS) and
