Syrma SGS Technology IPO: The engineering and design firm Syrma SGS Tech, based in Chennai, will launch its Initial Public Offering (IPO) on Friday, August 12. The public offering of Syrma SGS Technology will be offered for bids until August 18, 2022, according to the Red Herring Prospectus (RHP) of the IPO. On August 11, the anchor book will be accessible for a whole day.
One of the top Original Design Manufacturers ("ODM") firms, Syrma focuses on technology-based solutions and the ESDM ("Electronics system design and manufacturing") industry. The business plan of the company begins with the conception of the product and concentrates on every link in the value chain of the entire industry.
Before submitting the red herring prospectus, Syrma SGS Technology obtained Rs 110 crore through their pre-IPO sale for 37.93 lakh shares. The price for the aforementioned fundraising was Rs 290 per share, 32% more than the Rs 220 issue price.
The price range for the offer has been set by Syrma SGS Tech at Rs 209 and Rs 220 per share. The initial public offering consists of a new 766 crore rupee issuance and a 33.69 lakh equity share offer for sale.
Investors may place bids in increments of 68 equity shares, starting with a lot size of 68 shares. Those wishing to invest in the issue must put down a minimum of Rs 14,960 per lot at the upper end of the pricing band and a maximum of Rs 1,94,480 against 13 lots as they are permitted to put down a maximum of Rs 2 lakh.
On the strength of its strong top line and operating performance, Syrma recorded a 16.6% year-over-year increase in proforma profit at Rs 76.46 crore for the year ended March 2022. According to Axis Securities, "Proforma revenue from operations expanded by 43% to Rs 1,266.6 crore and EBITDA improved by 23% to Rs 143.70 crore compared to the year ending March 2021."
Due to its emphasis on quality and relationships with customers, Syrma is one of the top design and electronic manufacturing services companies in terms of revenue in Fiscal 2021. Additionally, it has consistently increased its income and profitability.
The strength of their administrative and cost management practices, as well as the expansion of their operations over time, are demonstrated by their financial condition, according to Axis Securities.
The company, supported by excellent R&D skills, is diversified, constantly increasing its product portfolio and service offerings to appeal to consumers across diverse industries.
"Syrma has built and will keep a focus on fostering enduring partnerships with reputable clients in the end-use sectors they serve. The management team at the company has a strong background in the EMS industry and a track record of success, according to the memo.
Additionally, Syrma shares are offered on the black market. Market watchers claim that shares of Syrma SGS Technology are currently offered on the black market for a premium of Rs 30. The grey market premium (GMP) for the SGS Technology IPO is Rs 30 today, up Rs 3 from the GMP of Rs 27 yesterday morning. Syrma SGS Technology IPO GMP is anticipated to stay at Rs 30 until the Indian stock market reopens on Wednesday, experts stated, even though today is a stock market holiday.
IPO Share Allotment and Listing Date
By August 23, the business will have decided on the basis for the share allocation, and by August 24, it will start initiating reimbursements for unsuccessful investors. By August 25, qualifying investors' Demat accounts will receive credit for their equity shares.
Finally, equity share trading will begin on the BSE and NSE starting on August 26.
About the Company
"The company's production facilities in Tamil Nadu are positioned in SEZs, allowing them to take advantage of special tax and other incentives regarding the items manufactured at these facilities," Axis Securities wrote in its IPO note. All of the manufacturing plants have ISO 9001 and 14001 certifications.
Radio Frequency Identification ("RFID") products were originally produced in India by Syrma, which has continued to dominate the market. The business is also known for being an industry leader in memory modules with extensive knowledge.
The offer's book-running lead managers are DAM Capital Advisors, ICICI Securities, and IIFL Securities, and its registrar is Link Intime India.