scorecard
  1. Home
  2. stock market
  3. news
  4. Syrma SGS Technology IPO: Last day to subscribe, grey market premiums at ₹25

Syrma SGS Technology IPO: Last day to subscribe, grey market premiums at ₹25

Syrma SGS Technology IPO: Last day to subscribe, grey market premiums at ₹25
Stock Market4 min read
  • The technology-focussed engineering and design company witnessed good demand on the first two days of issue as it has been subscribed over two times.
  • The company is looking to raise ₹840 crore with this public issue implying a market capitalization of ₹38.8 billion.
  • The grey market premium of the company stock was at ₹25 per share.
The IPO of Chennai based Syrma SGS Technology was subscribed 2.27 times since it opened for subscriptions. Today, August 18, is the last day to subscribe for the issue.

The technology-focused engineering and design company is engaged in turnkey electronics manufacturing services. It specializes in manufacturing for diverse industries, including industrial appliances, automotive, healthcare, consumer products and IT industries.

The company is looking to raise ₹840 crore with this public issue implying a market capitalization of ₹3,880 crore. The IPO launched on August 12 and will close on August 18 with a price band of ₹209- ₹220 per share.

Analysts say that the electronics system design & manufacturing (ESDM) market is expanding on the back of China+1 strategy, import substitution, ‘Make in India’ programme and government incentives.

“We believe Syrma is well placed to capitalize on domestic and global opportunities. Owing to superior technology based manufacturing domain, healthy product mix, diversified product portfolio, strong R&D capabilities, and capacity addition, we recommend ‘subscribe’ to the issue,” said analysts at Reliance Securities.

Syrma currently operates through 11 manufacturing facilities in north India (Himachal, Haryana and Uttar Pradesh) and south India (Tamil Nadu and Karnataka).

Some of its marquee customers include TVS Motor Company, A O Smith India Water Products, Robert Bosch Engineering and Business Solution, Eureka Forbes and Hindustan Unilever.

The company intends to continue investing in technology infrastructure and expand its customer base, geographical reach and increase its wallet share from existing customers.

The company witnessed good demand on the first two days of issue as it has been subscribed over two times overall.
Investor category

Subscription (as of day 2)

Qualified institutional buyers

0.71 times

Non-institutional investors

3.58 times

Retail

2.66 times

Overall

2.27 times

Shares of the company are currently commanding a grey market premium (GMP) of ₹25 per share. Grey market premium is a premium at which IPO shares are traded in an unofficial market before they are listed in the stock exchange.

Here are some of the important details of the IPO:
Issue details


Price band

₹209-₹220

IPO open date

August 12

IPO close date

August 18

Allotment date

August 23

Initiation of refunds

August 24

Credit of shares to demat account

August 25

IPO listing date

August 26

Minimum lot

68



SEE ALSO: Akasa Air has enough capital to induct 72 aircraft thanks to Rakesh Jhunjhunwala’s visionary role, says CEO
In the WFH era, soft skills like public speaking and persuasion are not so essential after all

READ MORE ARTICLES ON


Advertisement

Advertisement