Syrma SGS Technology IPO opened for subscription last week on Friday and will close on Thursday, 18 August. This is the first company to tap the primary market in two-and-a-half months. On the third day of the subscription window, the issue was subscribed over 1.7 times with retail investors leading the charge. Investors can bid for the shares of the engineering and design company in the fixed price band of Rs 209-220 per share. On Tuesday, three companies filed IPO papers with capital markets regulator SEBI. These include Balaji Solutions, Fairfax-backed Go Digit, Rare Enterprises-backed Concord Biotech.
Aditya Kondawar, Partner & Vice President, Complete Circle Capital, told FinancialExpress.com that if the Syrma SGS Tech does well, then one can expect more IPOs and more DRHP filings. “Remember that IPO going companies always wait for good market conditions so as to ensure high subscriptions and listing premiums,” Kondawar said.
Syrma SGS Tech GMP strong
On Wednesday, the shares of Syrma SGS Technology IPO were seen trading at a premium of Rs 40 per share in the unlisted space. Syrma SGS Technology grey market premium has increased from Rs 15 to Rs 40 since the IPO opened. Company’s top line growth has been healthy while margins have shrunk which appears to be a cause of concern. Therefore, it will be interesting to see how the company handles declining margins in the future, Abhay Doshi, Founder, UnlistedArena.com, dealing in Pre-IPO & Unlisted Shares, told FinancialExpress.com. Doshi added that the most recent pre-IPO placement was made at 290, the issue still appears to be moderately to fully priced. “Based on stable broader market sentiments we can expect a pleasing response to the IPO from the participants which in turn can favourable for a good listing,” Doshi added.
Go Digit General Insurance
Fairfax-backed Go Digit General Insurance on Tuesday filed a draft red herring prospectus with markets regulator SEBI for a Rs 1,250-crore initial public offering. The proposed IPO will also include an offer-for-sale (OFS) of up to 10.94 crore (10,94,45,561) equity shares by the company’s promoter and existing shareholders. Under OFS, the promoter entity – Go Digit Infoworks Services – will sell 10,94,34,783 equity shares and remaining 6,778 equity shares will be put up for sale by existing investors in the startup.
Concord Biotech has filed draft papers SEBI to mop up funds through public issue. The IPO is entirely an offer for sale of (OFS) of 2.09 crore equity shares by Helix Investment Holdings Pte Limited. The offer also includes a reservation for subscriptions by eligible employees. The company is backed by Quadria Capital Fund, and Rare Enterprises, which was set up by Rakesh Jhunjhunwala, along with his wife Rekha. The veteran stock market investor passed away on Sunday.
Balaji Solutions has filed preliminary papers with SEBI to raise funds through IPO. The public issue consists of a fresh issue of equity shares worth up to Rs 120 crore and an offer-for-sale (OFS) of up to 75 lakh equity shares by promoter and promoter group entity.