Syrma SGS Technology IPO: Chennai-based engineering and design company, Syrma‘s Initial Public Offering (IPO) will open on Friday, August 12. Ahead of that, the anchor book will be opened for a day on August 11. The public offer will remain open for bidding till August 18, 2022, according to the Red Herring Prospectus (RHP) of Syrma SGS Technology IPO.
The last initial share sale to hit the Indian markets was chemicals firm Aether Industries Ltd, which closed on May 26. Since then several companies canceled their plans to approach the IPO market because of market volatility caused due to ongoing Russia’s invasion of Ukraine and several other headwinds. Syrma SGS Technology IPO will be the first IPO to hit the primary market after a dry spell of almost two months. Market experts are keenly watching the outcome of this share sale as it could be an indicator to others waiting in the queue.
Syrma SGS Technology IPO: Price Band
The company has fixed a price band at Rs 209-220 per share. Syrma SGS Technology plans to raise Rs 766 crore by selling new shares. In addition, existing shareholders plan to raise around Rs 74 crore by selling 3.37 million shares.
Syrma SGS Technology IPO: Lot Size
Investors who wish to subscribe may bid for a lot size of 68 shares and thereafter in multiples of 68 equity shares. Those planning to invest in the issue will have to make a minimum investment at the upper end of the price band will be Rs 14,960 per lot and Rs 1,94,480 would be the maximum investment against 13 lots as they are allowed to invest up to Rs 2 lakh.
Syrma SGS Technology IPO: Reserved Portions
Half of the offer will be reserved for Qualified Institutional Buyers (QIBs), 35 per cent will be reserved for retail investors, and the remaining 15 per cent will be kept aside for non-institutional investors (NIIs). The book-running lead managers to the issue are DAM Capital, ICICI Securities, IIFL Securities.
Syrma SGS Technology IPO: Financials
Syrma SGS Technology had good revenues even in the Covid-19 period. The sales are increasing at a steady pace. Syrma reported a 16.6 per cent year-on-year growth in proforma profit at Rs 76.46 crore for the year ended March 2022 on the strong top line and operating performance.
Syrma SGS Technology IPO: Objective
The company intends to use the funds raised for multiple purposes such as funding capital expenditure requirements for the development of an R&D facility and expansion / setting up of manufacturing facilities. It will also use the proceeds for funding long-term working capital requirements and general corporate purposes.
Syrma SGS Technology IPO: GMP
As per market observers, Syrma SGS Technology shares are available at a premium (GMP) of ₹15 in the grey market today. Syrma SGS Technology shares are currently trading at 7 per cent or Rs 15 premium at Rs 235, against the IPO price at the upper band.
Syrma SGS Technology IPO: IPO Share Allotment
Syrma SGS Technology will finalise the basis of the allotment of shares by August 23 and will initiate refunds to unsuccessful investors by August 24. Equity shares will get credited to the Demat accounts of eligible investors by August 25.
Syrma SGS Technology IPO: Listing Date
The shares will start trading on the BSE and NSE will start with effect from August 26.
Syrma SGS Technology IPO: About the Company
Syrma SGS is a technology-focused engineering and design company engaged in turnkey electronics manufacturing services (EMS) that specialises in precision manufacturing. Its customers include TVS Motor Company, AO Smith India Water Products, Robert Bosch Engineering and Business Solution, Eureka Forbes and Total Power Europe BV. It operates through eleven manufacturing facilities in Himachal Pradesh, Haryana, Uttar Pradesh, Tamil Nadu and Karnataka and has three R&D facilities which are located in Tamil Nadu, Haryana, and Germany.
Syrma SGS Technology IPO: Should you Invest?
Abhay Doshi, Founder of UnlistedArena.com, dealing in Pre-IPO & Unlisted Shares, said: “After a long-halt Syrma SGS ends the drought in the primary market. The company has a diverse customer base and product portfolio. The top line is growing steadily while the margins have contracted lately, which appears to be cause for concern. Therefore, it will be interesting to see how the company handles declining margins in the future. On the valuation front also the issue looks moderately to fully priced.”
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