10 Aug , 2022 By : Kanchan Joshi
Electronic manufacturing services firm Syrma SGS Technology's initial public offering (IPO) will open for public subscription this week on Friday, August 12, 2022 and close conclude on Thursday, August 18, 2022. The price band has been fixed at Rs209-220 per share.
Syrma SGS Tech's IPO includes a fresh issue of Rs766 crore and an offer for sale (OFS) of up to 3.37 million shares by promoter Veena Kumari Tandon. The company aims to raise Rs840 crore through its IPO.
As per market observers, Syrma SGS Technology shares are available at a premium (GMP) of Rs15 in the grey market today. The company's shares are expected to list on stock exchanges BSE and NSE on Friday, August 26, 2022.
“The revenues have been growing steadily while the profit margins have shrunk which seems to be a concern. Thus, it would be keen to watch how the company addresses shrinking margins ahead. The last Pre-IPO placement was undertaken at Rs290, however, the issue still looks moderately to fully priced," said Abhay Doshi of UnlistedArena.
The company aims to use the net proceeds from the fresh share issue for funding capital expenditure requirements to expand manufacturing and R&D facilities and to fund long-term working capital requirements.
Syrma SGS is a technology-focused engineering and design company engaged in turnkey electronics manufacturing services (EMS) that specialises in precision manufacturing. Its customers include TVS Motor Company, AO Smith India Water Products, Robert Bosch Engineering and Business Solution, Eureka Forbes and Total Power Europe BV.
It operates through eleven manufacturing facilities in Himachal Pradesh, Haryana, Uttar Pradesh, Tamil Nadu and Karnataka and has three R&D facilities which are located in Tamil Nadu, Haryana, and Germany.
DAM Capital Advisors, ICICI Securities, and IIFL Securities are the book-running lead managers for the offer, whereas Link Intime India is the registrar to the issue.
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