50 Per Cent From 52-week Low: IT Company Terminated Its Proposed Acquisition of a 60 Pe rcent Stake in eProtect 360 Solutions Pvt Ltd
The stock is up over 50 per cent from its 52-week low of Rs 247.55 per share.
Orient Technologies Limited announced the termination of its proposed acquisition of a 60 per cent stake in eProtect 360 Solutions Private Limited. The decision was made after both parties failed to reach a consensus on revised terms during the due diligence process. The Board of Directors had initially granted in-principle approval for the acquisition, contingent upon the finalization of mutually agreeable terms.
However, the inability to finalize a Definitive Agreement led to the mutual termination of the Teaming Agreement. The company emphasized that the termination does not have any material financial impact, as the transaction was still in its preliminary stages. This development was communicated in compliance with SEBI regulations to inform stakeholders.
Incorporated in July 1997, Orient Technologies Limited is a rapidly expanding IT solutions provider headquartered in Mumbai, Maharashtra. The company operates across several business verticals, including IT Infrastructure, IT Enabled Services (IteS), and Cloud and Data Management Services. It has recently ventured into the "Device as a Service (DaaS)" model, offering a range of devices bundled with software and managed services on a subscription basis. Orient Technologies plans to allocate Rs 69.57 crore from IPO proceeds to enhance its DaaS segment.
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The company collaborates with technology leaders like Dell, Fortinet, and Nutanix to deliver advanced solutions, catering to industries such as BFSI, IT, ITeS, and healthcare. With a diverse clientele, including Coal India and Mazagon Dock Shipbuilders, the company generates most of its revenue from India. The revenue bifurcation for FY24 shows IT Infrastructure Products and Services contributing 52 per cent, ITeS 22 per cent and Cloud and Data Management Services 26 per cent.
The market capitalization of Orient Technologies Limited is over Rs 1,500 crore. The Price-Earnings (PE) Ratio stands at 35.69. The stock is up over 50 per cent from its 52-week low of Rs 247.55 per share. Investors should keep an eye on this small-cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.