Syrma SGS Technology’s Rs 840-crore IPO, which oversubscribed 32.61 times, is all set to make its share market debut on Friday, 26 August. This was the first company in over two months to hit the market with an IPO. The IPO shares were sold at a price band of Rs 209-220. In the grey market on Thursday, Syrma SGS Tech shares were seen quoting at a premium of Rs 54. The offer received bids for 931.4 million equity shares as against 28.5 million shares on the offer, according to the data available on exchanges.
Syrma SGS Tech IPO listing day trading strategy
After a long break of almost two months, primary markets will again be operational with the listing of Syrma SGS. Analysts say that Syrma SGS received a decent response from investors across all categories. “Broader market conditions too seems to be in favour. Considering such factors, Syrma SGS can be a strong listing expectant which may list at a reasonable premium of 20-25% over its issue price,” Abhay Doshi, Founder, UnlistedArena.com, dealing in Pre-IPO & Unlisted Shares, told FinancialExpress.com.
Should you buy, sell, hold?
Shares of Syrma SGS Technology, a provider of electronic manufacturing services, were trading at a premium of more than 24% on the grey market on August 26, signalling a promising start for the firm, Rahul Goud, Research Analyst – Equity Research, told FinancialExpress.com. Goud said that with respect to Syrma, the grey market premium (GMP) was around Rs 50–55, or 22–25%, over the final issue price of Rs 220 per share. TVS Motor Company, AO Smith India Water Products, Robert Bosch Engineering and Business Solution, Eureka Forbes, and Total Power Europe BV are some of its clients.
Rahul Goud said that keeping the issue price lower than pre-IPO placement price, better financial performance, strong client relationship and diversified product portfolio along with experienced promoters could be the reasons investors can wait for some correction on listing day. “Investors can buy on dips around Rs 230 for long term investment,” he added.
Through its pre-IPO placement, the company had already raised Rs 110 crore for 37.93 lakh shares which shows the belief people have in the company’s growth, Rajesh Singla, CEO, Planify, told FinancialExpress.com. As per the company, fundraising was at Rs 290 per share, a 32% increase premium to the issue price of Rs 220. Singla added that the company is expected to list at Rs 270-280 and can gain further momentum if institutional buying comes in the stock. “Investors who got the allotment should hold on to the stock for further gains,” Singla advised.