Syrma SGS Technology IPO: The issue of Syrma SGS Technology, a company providing electronic manufacturing services, is opening on August 12. An IPO is coming in the market after 80 days amidst heavy volatility in the stock market. The issue of the company opened today and will close on August 18.
Syrma SGS Technology is going to raise a total of Rs 840 crore from the issue. Out of this, there is a fresh issue of Rs 766 crore. While 33.69 lakh shares are being sold by the company’s promoter Veena Kumari Tandon. A day before the issue opens, the company has raised Rs 252 crore from anchor investors. The company has given 114,56,261 equity to its anchor investors at Rs 220 per share. Accordingly, the company has raised a total of Rs 252.04 crore.
Anchor investors of Syrma SGS Technology include Nomura, Kuber India Fund, BNP Paribas Arbitrage, Aditya Birla Sunlife Insurance Company, ICICI Prudential Mutual Fund, Tata Mutual Fund, Edelweiss Mutual Fund and IDFC MF.
What is issue price?
The price band for the issue of Syrma SGS Technology is Rs 209-220. One lot of the issue of the company is of 68 shares. Retail investors will invest a minimum of Rs 14,960 and a maximum of Rs 1,94,480.
Is it ok to invest in the issue?
Ravi Singh, VP and Head (Research), Share India Securities, said, “Sirma deals in electronic manufacturing services and the outlook for this segment is positive. The company is focusing on high margin products. IPOs have a good value in terms of valuation and investors can invest in it for medium to long term terms.
What’s going on GMP
The Gray Market Premium (GMP) of Syrma SGS Technology is running at Rs.15 today. Accordingly, the issue of the company is trading at Rs 235 in the unlisted market. However, stock market analysts have cautioned IPO investors against making investment decisions based on GMP. He said that GMP is an unofficial data.
What is the business of the company?
Syrma SGS Technology is a technology focused engineering and design company engaged in turnkey electronics manufacturing services business. Apart from this, the company also provides its engineering and design services to sectors such as automotive, healthcare, consumer products. It has 11 manufacturing plants in Himachal, Haryana, Uttar Pradesh, Tamil Nadu and Karnataka. It also has R&D facilities in Tamil Nadu, Haryana and Germany. Dam Capital, ICICI Securities and IIFL Securities have been appointed as Book Running Lead Managers.
How have the company’s results been?
Syrma posted a proforma profit of Rs 76.46 crore with a year-on-year growth of 16.6% for the financial year ended March- 2022, driven by strong revenues and performance. On the other hand, proforma revenue grew 43 per cent to Rs 1,266.6 crore.
Where will the funds be used
Syrma SGS Technology will use the funds raised from the fresh issue to meet operational requirements, enhance manufacturing and R&D. Apart from this, the fund will be used for other business needs and long term working capital requirements.