Thomas BabychanSyrma SGS Technology, a tech company based in Chennai, had a promising first day of IPO in the markets, as overall subscriptions touched 37% due to renewed interest among retail investors to subscribe to the shares.
Syrma SGS Technology, which is in the business of electronics and manufacturing services, decided to go public in Indian markets, which hasn’t witnessed any major IPOs since the month of May 2022.
Nearly 69% of the portion of shares reserved for retail investors got subscribed as retail investors decided to go with strong fundamentals and future prospects of the company. Syrma SGS Technology led by Sandeep Tandon and Jasbir Singh Gujral saw revenue growth of 20% (CAGR) from 2020 to 2022.
In the shares reserved for non-institutional investors, only 13% have been subscribed so far. It is important to note that Qualified Institutional investors are yet to start pumping money into the stocks of Syrma SGS Technology.
According to official documents, the company is offering its shares at a price range of ₹209 – ₹220 per share.
Initial Public Offering of the shares is conducted in such a way that company is issuing fresh equity shares which would add up to nearly 766 crore Indian rupees, along with an offer for sale of 33 lakh shares. The company is planning to raise 840 crore rupees from this public offer.
The IPO which opened on 12th August 2022 would continue till 18th August. After the allotment of shares on 23rd August (tentative), the shares would be listed on the national stock exchange and Bombay stock exchange on August 26th.
Pre IPO Allocation of Shares
Before the initial public offering of shares in the open market, Syrma SGS Technology raised 252 crore Indian rupees through an ‘anchor book allocation’ of shares. Major investors from both international and domestic markets participated in the anchor book allocation.
Japanese investment giant, Nomura, Singapore-based asset management company, East spring investments, Tata Mutual, IIFL, BNP Paribas etc were all part of the allocation.
Choice Broking, a brokerage company based in Mumbai, said in a report that the products of Syrma SGS Technology are used by various sectors such as the Industrial sector, consumer sector, healthcare and automotive. Having a wide range of customers from varied sectors provides the company with extra security against any sector-specific market instability.
This factor also played an important role in the appreciable performance of the company during the first day of the public offer.
The sale of shares is managed by banks and brokerage entities such as Dam Capital Advisors Ltd, ICICI Securities Ltd, IIFL Securities Ltd, and Choice Broking