Syrma SGS Tech Rs 840 crore IPO opens 12 August: Grey market premium up; should you subscribe?

Syrma SGS Technology’s Rs 840-crore IPO will open for subscription on 12 August, Friday.

Syrma SGS Tech Rs 840 crore IPO opens 12 August: Grey market premium up; should you subscribe?
After a lengthy vacation, the IPOs will resume on D-Street, beginning with the IPO of Syrma SGS Technology.

Syrma SGS Technology’s Rs 840-crore IPO will open for subscription on 12 August, Friday. This electronic manufacturing services firm’s IPO ends two-and-a-half months of the gap in the initial public offering (IPO) market. The company has fixed a price band at Rs 209-220 per share. The public issue will close for subscription on 18 August. Investors who wish to subscribe can bid for a lot size of 68 shares or in multiples thereafter. In the grey market, Syrma SGS Technology shares were seen trading at 7 per cent or Rs 15 premium at Rs 235, against the IPO price at upper band.

Also read: Buy Tech Mahindra, HDFC Life, Sun Pharma stocks, charts show near-term gains; Nifty support at 17350

Half of the offer will be reserved for Qualified Institutional Buyers (QIBs), 35 per cent will be reserved for retail investors, and remaining 15 per cent will be kept aside for non-institutional investors (NIIs). The book running lead managers to the issue are DAM Capital, ICICI Securities, IIFL Securities. The equity shares are likely to be listed on both BSE and NSE.

Should you subscribe to Syrma SGS Technology IPO?

Subscribe for long-term gains: Ravi Singh, VP & Head of Research, Share India Securities

The segment in which Syrma SGS is dealing i.e., electronics manufacturing services has a positive outlook ahead. The company is also focusing on products bearing high margins. SSTL’s manufacturing facilities in Tamil Nadu are located in a special economic zone which allows it to avail of certain tax and other benefits. The ipo is also well priced as per the valuations and investors may consider to subscribe this ipo with a medium to long term perspective.

Also read: Cathie Wood says US economy in recession but don’t worry, good times are coming

Subscribe: Rajesh Singla founder CEO unlisted shares platform Planify India

India’s biggest Startup and PreIPO marketplace said “The company reported a 16.6% year-on-year growth in pro forma profit at Rs 76.46 crore for the year ended March 2022 on the strong top line and operating performance. Pro Forma revenue from operations grew by 43% to Rs 1,266.6 crore and EBITDA increased by 23% to Rs 143.70 crore compared to the year ending March 2021. The company is the first in India to manufacture Radio Frequency Identification (RFID) products and continues to lead the industry. Also, the company is recognized as a leader in memory modules with deep expertise.

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 higher end of the pricing range and a maximum of Rs 1,94,480 against 13 lots as they are permitted to put down a maximum of Rs 2 lakh. It is a good chance to invest as this company can give fruitful returns to their shareholders.

Syrma SGS Tech IPO looks moderately to fully priced: Abhay Doshi, Founder, UnlistedArena.com, dealing in Pre-IPO & Unlisted Shares

After a lengthy vacation, the IPOs will resume on D-Street, beginning with the IPO of Syrma SGS Technology. Syrma is one of the top Electronics system design and manufacturing (ESDM) businesses with an emphasis on exports. While the profit margins have shrunk, revenues have been increasing steadily, which appears to be cause for concern. Therefore, it will be interesting to see how the company handles declining margins in the future. Although the most recent pre-IPO placement was made at 290, the issue still appears to be moderately to fully priced.

The stock recommendations in this story are by the respective research analysts and brokerage firms. FinancialExpress.com does not bear any responsibility for their investment advice. Capital markets investments are subject to rules and regulations. Please consult your investment advisor before investing.

Get live Share Market updates and latest India News and business news on Financial Express. Download Financial Express App for latest business news.

Photos