Syrma SGS Technology IPO: The preliminary public providing (IPO) of digital manufacturing providers agency Syrma SGS Technology opened for subscription on Friday, August 12, 2022. It was subscribed round 20 per cent by 12:24 pm on the primary day of bidding.
It obtained whole bids for 56,78,680 shares throughout each the inventory exchanges towards 2,85,63,816 shares on supply, knowledge from National Stock Exchange (NSE) confirmed.
The Rs 840 crore Syrma SGS Technology IPO shall be out there for subscription until Thursday, August 18, 2022, and the value band of the corporate has been fastened at Rs 209-220 per share.
The Syrma SGS IPO is the primary supply to hit the first market in virtually two-and-a-half months. Prior to this, Aether Industries IPO had opened for public subscription again on May 24-26, 2022.
The Syrma SGS Tech IPO contains a contemporary subject of shares price Rs 766 crore and a proposal on the market (OFS) of as much as 33.69 lakh fairness shares by promoter Veena Kumari Tandon.
The web proceeds from the contemporary subject shall be used for funding capital expenditure necessities for the event of an R&D facility and growth / organising of producing services, funding our working capital necessities and basic company functions, in line with the data given within the purple herring prospectus (RHP).
Syrma SGS Technology is a technology-focused engineering and design agency that’s engaged in turnkey electronics manufacturing providers (EMS) that specialises in precision manufacturing.
Some of its high prospects embody TVS Motor Company, AO Smith India Water Products, Robert Bosch Engineering and Business Solution, Eureka Forbes and Hindustan Unilever, the RHP stated.
It at the moment operates by 11 manufacturing services positioned throughout 5 states – Tamil Nadu, Karnataka, Himachal Pradesh, Haryana and Uttar Pradesh. It additionally has three R&D services, two of that are positioned in Chennai, Tamil Nadu and Gurgaon, Haryana, and one is positioned in Stuttgart, Germany.
In September final yr, Syrma had acquired Gurugram-based SGS Tekniks in a money and inventory deal. Additionally, it acquired Perfect ID in October 2021.
Half of the difficulty dimension has been reserved for certified institutional patrons (QIBs), 15 per cent for non-institutional buyers and the remaining 35 per cent for retail buyers.
Investors who want to subscribe to Syrma SGS IPO can bid in a variety of 68 fairness shares and multiples thereafter. At the higher value band, they are going to be shelling out Rs 14,960 to get a single lot of Syrma SGS Technology. The shares shall be listed on each BSE in addition to the NSE.
The candidates additionally should be aware that the cut-off time for UPI mandate affirmation is Friday, August 19, 2022, upto 12:00 pm. If they fail to take action then their utility is probably not thought-about.
DAM Capital Advisors, ICICI Securities and IIFL Securities are the e-book working lead managers to the supply whereas Link Intime India is the registrar of the difficulty.
Before heading into the IPO, Syrma SGS Technology on Thursday raised over Rs 252.03 crore (Rs 2,52,03,77,420) from 18 anchor buyers in lieu of 1,14,56,261 fairness shares at Rs 220 every, knowledge from the inventory exchanges confirmed.
The anchor buyers embody Nomura, ICICI Prudential Mutual Fund (MF), Tata MF, IDFC MF, BNP Paribas Arbitrage, Edelweiss MF amongst others.
The analysis groups at Geojit Financial Services, Anand Rathi Share and Stock Brokers and Reliance Securities of their respective IPO notes have given a “Subscribe” ranking to the supply for the long run.
Geojit Research in its IPO be aware stated, “At the upper price band of Rs.220, SSTL is available at a P/E of 50.7x (FY22), which is available at a discount to its peers. Considering its good peer financial performance, strong focus on R&D, capacity expansion plans, positive industry outlook with government support through PLI schemes and China plus one strategy of multinational companies, we assign a “Subscribe” ranking for the difficulty on a medium to long run foundation.”
Anand Rathi Research famous, “At the upper end of the IPO price band, Syrma SGS Technology Ltd. is offered at P/E of 53.03x its FY22 earnings, with a post issue market capitalization of ₹38,770 Million. Syrma SGS Technology Ltd is one of the leading design and electronic manufacturing services companies with diversified product portfolio and service offerings catering to customers across various industries across countries. The Company is operating in one of the fastest growing sectors in the current market, including consumer electronics and appliances, telecommunications, automotive and industrial. The National Policy on Electronics (NPE) aims to make India a global hub of the electronic system design and manufacturing. However, the IPO is richly priced, hence we give the IPO a “Subscribe (Long Term)” ranking.”
The share allotment is more likely to happen on Tuesday, August 23, 2022, and the shares are anticipated to be listed on Friday, August 26, 2022, in line with the timeline given within the RHP.
