Syrma SGS IPO was subscribed 37% on Day 1, open till Thursday next
MUMBAI, Aug 13 (The CONNECT) - The Initial Public Offering (IPO) of Syrma SGS Technology has received bids of 1,05,17,900 shares against the offered 2,85,63,816 equity shares, at a price band of ₹209-₹220, according to the data available on the stock exchanges. Overall the issue was subscribed 0.37 times on the first day of bidding.
Retail Investor segment saw a robust demand as it was subscribed 0.69 times. Qualified institutional buyers are yet to put in their bids. The reserved portion of non-institutional investors witnessed a subscription of 0.13 times. The issue which opened yesterday will be open till Thursday.
The IPO consists of a fresh issue of equity shares aggregating to Rs 766 crore and an offer for sale (OFS) of up to 3,369,360 equity shares.
Ahead of its issue opening, Syrma SGS Technology Limited raised Rs 252 crore from marquee investors such as Nomura, Eastspring Investments, Franklin Templeton, Tata Mutual Fund, ICICI Prudential Mutual fund, IIFL, Kuber India, Abakkus and BNP Paribas . The company aims to raise Rs 840 crore through its IPO.
KR Choksey, Canara Bank Securities, Hem Securities have given recommendations of a Subscribe rating to the issue.
According to brokerages, expanding the scope of the EMS sector, combined with the company's diverse product portfolio, is ideal for capitalising on the company's growth opportunity. It has grown at a CAGR of 20.8% between FY20 and FY22, owing to strong demand traction across the industries it serves and a focus on innovation.
The company is diverse, with a constantly evolving and expanding product portfolio and service offerings catering to customers in a variety of industries, and is supported by strong R&D capabilities. Furthermore, the company has established relationships with marquee customers from various countries, as well as cutting-edge manufacturing capabilities backed by a global supplier network, with a focus on vertical integration.
Dam Capital Advisors Limited, ICICI Securities Limited, and IIFL Securities Limited, Choice Broking are the book running lead managers to the issue and Link Intime India Private Limited is the registrar to the Issue.
Promoted by Sandeep Tandon and Jasbir Singh Gujral, Syrma SGS, is a technology-focussed engineering and design company engaged in turnkey electronics manufacturing services (EMS”) specialises in precision manufacturing.
