Syrma SGS Technology IPO: After an 80-day lull amid market uncertainty, electronic manufacturing services firm Syrma SGS Technology said it will come out with its Rs 840-crore initial share sale on Friday, August 12, which will end two-and-a-half months of the gap in the initial public offering (IPO) market. The company has fixed a price band of Rs 209-220 per equity share for its IPO. Weak sentiment in the secondary markets and the weak demand for over a half dozen public issues launched in May after the mega IPO from state-owned LIC have impacted the primary market mood.
Syrma SGS Technology IPO: Issue Size, Date
The public issue of Syrma SGS Technology comprises a fresh issue of shares worth Rs 766 crore, and an offer for sale (OFS) of up to 33.69 lakh equity shares by Veena Kumari Tandon. At the upper end of the price band, the company is expected to raise Rs 840 crore. The public issue will open on August 12 and close on August 18.
Syrma SGS Technology IPO: Objective
The net proceeds from the fresh issue will be utilised for funding capital expenditure requirements to expand manufacturing, R&D facilities, long-term working capital requirements, and general corporate purposes.
Syrma SGS Technology IPO: About the Company
Syrma SGS is a technology-focused engineering and design company engaged in turnkey electronics manufacturing services (EMS), specialising in precision manufacturing for diverse end-use industries, including industrial appliances, automotive, healthcare, consumer products, and IT industries. The portfolio of products provided by the company to several industries is printed circuit board assemblies (PCBA), radio frequency identification (RFID) products, electromagnetic and electromechanical parts, motherboards, DRAM modules, solid state drives, USB drives, and other memory products.
Promoters Sandeep Tandon, Jasbir Singh Gujral, Veena Kumari Tandon, and Tancom Electronics – hold 57.12 per cent equity stake, while investors including South Asia Growth Fund II, Holdings LLC, and Malabar Select Fund own 7.53 per cent and 1.22 per cent stake, respectively in the company at the time of filing RHP.
Syrma SGS Technology IPO: Financials
The company posted a 16.6 per cent on-year growth in proforma profit at Rs 76.46 crore for the year ended March 2022 on the strong top line and operating performance. Proforma revenue from operations grew by 43 per cent to Rs 1,266.6 crore and EBITDA increased by 23 per cent to Rs 143.70 crore compared to the year ending March 2021. EBITDA is earnings before interest, tax, depreciation, and amortisation.
Syrma SGS Technology IPO: Allotment, Listing Dates
The company will finalise the basis of the allotment of shares by August 23 and will initiate refunds to unsuccessful investors by August 24. Equity shares will get credited to the Demat accounts of eligible investors by August 25.
Syrma SGS Technology IPO: GMP Today
As per market observers, Syrma SGS Technology shares are available at a premium (GMP) of Rs 30 in the grey market today. The company’s shares are expected to list on stock exchanges BSE and NSE on Friday, August 26, 2022.