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HomeFunding & InvestmentOrient Technologies IPO Oversubscribed 16.95x, Grey Market Premium Signals 34% Potential Gains

Orient Technologies IPO Oversubscribed 16.95x, Grey Market Premium Signals 34% Potential Gains

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Orient Technologies, a new generation telecommunications company has recently floated its IPO, and based on the response, the issue was many times over subscribed, to be precise the issue was 16 times subscribed. 95 as of the second day of what was called bidding. This is an announcement regarding subscription period which which is expected to close today, August 23, 2024 as follows; The ‘face value’ of each Orient Technologies IPO share is Rs 10 while the price range given for the IPO is Rs 195 to Rs 206 per share and includes a minimum bid of Rs 14,832 for one lot of 72 shares.

At present, Orient Technologies ‘shares are quoted on the grey market with a GMP of Rs 70 which is 34% higher than IPO upper band price. The positive GMP normally implies demand and investors’ appetite and this makes IPOs to list at a price higher than the issue price. If trends of market are as such, the listing gains of Orient Technologies can be estimated to be around 34 percent after its shares are listed in the exchange.

The Rs 215 crore public issue has had overall demand for as many as 12,62,82,744 shares as compared to the actual float of 74,49,846 shares, as per the information available from the NSE. The risk selling category for the retail investor has been oversubscribed by 24. four times so far, the category of Non-Institutional Investors (NII) has exhibited a subscription rate of 20 times. 97 times. QIB category which was at a much better position as compared to the other categories remained poorly subscribed at 0. 16 times.

The Orient Technologies IPO comprises a new issue of Equity SHAREs for up to Rs 120 crore comprising of 5,825,243 Fresh Issue SHAREs and an offer for sale of 4,600,000 Share and the funds will be utilized for financing working capital requirements, repayment of borrowings/ subscription to debt securities, acquisitions / investments and general corporate purposes. 76 crore. The OFS is in progressive stage and shares are being sold by important promoters of the company such as Ajay Baliram Sawant, Umesh Navnitlal Shah, Ujwal Arvind Mhatre and Jayesh Manharlal Shah etc. The company has already locked in Rs 64. 43 crore from anchor investors on Aug 19 2024 A day before the opening of the public issue.

The allotment of shares is scheduled for August 26, 2024, with the shares expected to be credited to investors’ Demat accounts by August 27, 2024. The shares are anticipated to be listed on the NSE and BSE on August 28, 2024. The IPO is being managed by Link Intime India as the registrar and Elara Capital (India) as the book-running lead manager.

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