Market NewsSyrma SGS Technology IPO: Investors did not show much interest on the...

Syrma SGS Technology IPO: Investors did not show much interest on the first day, will Raunak return today?

Syrma SGS Technology IPO: The company's issue was subscribed just 0.37 times at the end of the first day. The share of retail investors in this was only 0.69 times.

Syrma SGS Technology IPO Subscription Status: The issue of Syrma SGS Technology, a company providing electronic manufacturing services, opened onAugust 12 and will close on August 18. Today is the second day of its subscription. Investors did not show much interest in the first day’s subscription. The company’s issue was subscribed just 0.37 times at the end of the first day. In this, the share of retail investors was only 0.69 times.

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.

What’s going on GMP?

The Gray Market Premium (GMP) of Syrma SGS Technology is running at Rs.16 today. Accordingly, the issue of the company is trading at Rs 236 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.

When will allotment of shares take place?

The allotment of shares of Syrma SGS Technology is scheduled to take place on August 23. The shares will start appearing in the demat account of the people who will get the shares by August 25. Whereas the listing of shares can be done on August 26.

Is it ok to investing 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 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.

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