The Orient Technologies Initial Public Offering (IPO) has garnered significant attention in the market, with the subscription hitting 16.96 times on the second day of bidding. This reflects strong interest from investors, particularly in the retail and non-institutional segments.

High Subscription Rates on Day 2

The IPO, which opened for subscription on August 21, 2024, received bids for an impressive 12,63,33,144 shares, vastly surpassing the 74,49,846 equity shares available within the price range of ₹195-206. The retail portion, in particular, was oversubscribed by 24.49 times, while the non-institutional investor portion saw a 20.97 times subscription. However, the qualified institutional buyer (QIB) portion was subscribed only 0.16 times by the second day. The subscription period is scheduled to close on Friday, August 23.

Anchor Investors Show Strong Confidence

In a significant prelude to the IPO, Orient Technologies Ltd raised ₹64.43 crores from anchor investors just a day before the issue opened. The anchor book included notable foreign and domestic institutions such as Pine Oak Global, Saint Capital Fund, SB Opportunity Fund I, Elara Capital (Mauritius) Fund, and Rajasthan Global Securities. This infusion from well-regarded entities underlines the confidence in Orient Technologies' market potential.

Details of the IPO Structure

The Orient Technologies IPO is structured as a book-built issue with a total valuation of ₹214.76 crores. It comprises a fresh issue of 0.58 crore shares amounting to ₹120 crores and an offer for sale (OFS) of 0.46 crore shares totaling ₹94.76 crores. Investors must apply for a minimum lot size of 72 shares, which requires a minimum investment of ₹14,832.

Price Band and Market Sentiment

The price band for the IPO has been set between ₹195 and ₹206 per share, which places the company within an attractive valuation range for potential investors. With such a high subscription rate, the IPO reflects strong market sentiment and positions Orient Technologies as a promising entrant to the public markets.

Upcoming Allotment and Listing Details

The allotment of shares is expected to be finalized on Monday, August 26, with shares set to be listed on the BSE and NSE. The tentative listing date is Wednesday, August 28. Investors and market participants are keenly watching the Grey Market Premium (GMP), which is projected to range between ₹400 and ₹450. This GMP serves as an informal indicator of the market's expectations and potential listing gains, although it is crucial to approach such speculative figures with caution.

Key Players in the IPO Process

Elara Capital (India) Private Limited is serving as the sole book-running lead manager, ensuring the smooth execution of the IPO process, while Link Intime India Private Limited acts as the registrar for the offering. These entities play a crucial role in managing the intricate details of the IPO, from subscription to eventual listing on the stock exchanges.

Conclusion: A Promising IPO with Strong Market Appeal

Overall, the robust demand for Orient Technologies' IPO underscores the company's strong market appeal and the confidence of investors in its growth prospects. As the subscription period draws to a close, all eyes will be on the upcoming allotment and listing, which could potentially yield substantial returns for investors.

Check latest IPO Review & analysis, Live GMP today, Live Subscription Status Today, Share Price, Financial Information, latest IPO news, Upcoming IPO News before applying in the IPO. The Upcoming IPOs in this week and coming weeks are Indian Phosphate Limited. The current active IPO is Rapid Multimodal Limited, Resourceful Automobile Limited, Ideal Technoplast Industries Limited, QVC Exports Lmited, Orient Technologies Limited.

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