Orient Technologies shareholders have approved the company's proposal to issue bonus shares in a 1:10 ratio, sending the stock up 10% to ₹364.00 on Tuesday. The data center solutions provider announced this development through an exchange filing, marking a significant milestone for the company's retail investor base.

Bonus Share Details and Structure

The approved bonus issue represents Orient Technologies' first free share distribution since its market debut in August last year. Under the 1:10 ratio structure, eligible shareholders will receive one bonus share for every 10 shares held as on the record date, which the company will announce separately.

The company's board had initially approved the bonus share decision alongside its September quarter results in November. Orient Technologies will fund the bonus issue through capitalization of ₹4.16 crore from its Securities Premium Account, and has already secured necessary approvals from stock exchanges.

Shareholder Composition and Impact

The bonus issue will particularly benefit Orient Technologies' substantial retail investor base, which forms a significant portion of the company's public shareholding. As of the September quarter, the company's ownership structure shows strong retail participation.

The 82,000 retail shareholders, defined as those with authorized share capital up to ₹2 lakh, represent the majority of the company's public investor base. Notably, mutual funds currently have no exposure to the stock, highlighting the company's appeal primarily among individual investors.

Stock Performance and Market Response

Orient Technologies shares demonstrated strong market response to the bonus approval, gaining 10% in Tuesday's trading session. The stock's performance reflects investor enthusiasm for the company's first bonus issue since listing.

Despite the recent surge, Orient Technologies shares remain down 26.00% for the current year, though long-term investors have benefited significantly with 77.00% returns since the IPO price of ₹206.00.

Company Background

Orient Technologies specializes in data center solutions, virtual storage, and enterprise servers, serving clients across multiple industry verticals. The company's focus on technology infrastructure solutions positions it within the growing digital transformation sector, catering to businesses requiring robust data management and storage capabilities.

Orient Technologies Limited , a leading IT Infrastructure and Digital Transformation service provider in India, has announced the launch of a state-of-the-art Service Delivery Centre (SDC) in Turbe, Navi Mumbai. This strategic move marks a significant milestone in the company's growth trajectory and underscores its commitment to delivering advanced IT services across various sectors.

Key Highlights of the New Service Delivery Centre

• Location: Turbe, Navi Mumbai
• Features:
  • 24/7 Network Operations Centre (NOC)
  • Security Operations Centre (SOC) with Securonix-powered capabilities
• Target Sectors: BFSI, Pharma, Manufacturing, ITES, Government, and large enterprises

Enhanced Capabilities and Services

The new facility is designed to provide round-the-clock monitoring and support, significantly enhancing Orient Technologies' ability to deliver uninterrupted IT services. The integration of Securonix-powered capabilities in the SOC represents a major leap forward in the company's threat detection and response capabilities.

Strategic Partnership with Securonix

Orient Technologies has forged a strategic alliance with Securonix, a recognized leader in the cybersecurity space. This partnership brings advanced threat detection, investigation, and response capabilities to Orient's service offerings, positioning the company at the forefront of cybersecurity solutions in India.

Impact on Business Operations

The establishment of this new Service Delivery Centre is expected to strengthen Orient Technologies' market position and expand its service capabilities. By offering advanced NOC and SOC services, the company aims to cater to the growing demand for robust IT infrastructure and cybersecurity solutions across various industries.

Financial Perspective

While the direct financial impact of this new centre is not immediately quantifiable, Orient Technologies' recent financial data shows a positive trend in its business growth:

The significant growth in assets and equity over the past year suggests that Orient Technologies is in a strong financial position to support this expansion and capitalize on new market opportunities.

Conclusion

The launch of the new Service Delivery Centre in Turbe represents a strategic move by Orient Technologies to enhance its service capabilities and market presence. With advanced NOC and SOC facilities, powered by cutting-edge technologies and strategic partnerships, the company is well-positioned to meet the evolving IT infrastructure and cybersecurity needs of its diverse client base across key sectors in India.

As the demand for robust IT services and cybersecurity solutions continues to grow, Orient Technologies' investment in this state-of-the-art facility could prove to be a significant driver of future growth and market leadership in the IT services sector.