Syrma SGS Technology Ltd opens for its IPO subscription on 12th August 2022. The closing date for application of the Syrma SGS IPO is 18th August 2022.
The issue includes fresh issue of equity shares worth Rs 766 crore, and an OFS or offer for sale of 33.69 lakh equity shares. The company raised Rs. 110 crores through its pre-IPO placement of 37.93 lakh shares.
The lower end of the price band is fixed at Rs. 209 per share and Rs. 220 per share on the upper band.
The lot size is set up at 68 shares per lot and subsequently multiples of 68.
The current grey market premium is trading at Rs. 30 so it may list at Rs. 250 apiece.
The lead book running managers for the Syrma SGS public offering are Dam Capital Advisors, ICICI Securities and IIFL Securities.
Syrma SGS Technology Limited is an engineering and design company in electronics manufacturing services (EMS) incorporated in 2004.
It is based out of Chennai and 11 manufacturing units, 3 R&D facilities and is focused on industries like consumer products, automotive, industrial appliances, healthcare, and IT.
Syrma IPO Details
| Syrma IPO Date | Aug 12, 2022 to Aug 18, 2022 |
| Syrma IPO Face Value | ₹10 per share |
| Syrma IPO Price | ₹209 to ₹220 per share |
| Syrma IPO Lot Size | 68 Shares |
| Issue Size | [.] shares of ₹10 (aggregating up to ₹840.00 Cr) |
| Fresh Issue | [.] shares of ₹10 (aggregating up to ₹766.00 Cr) |
| Offer for Sale | 3,369,360 shares of ₹10 (aggregating up to ₹[.] Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
| QIB Shares Offered | Not more than 50% of the Offer |
| Retail Shares Offered | Not less than 35% of the Offer |
| NII (HNI) Shares Offered | Not less than 15% of the the Offer |
| DRHP Link | Syrma IPO DRHP |
| RHP Link | Syrma IPO RHP |
Syrma SGS: Company Background
Syrma SGS Technology Ltd. (SSTL) is a technology-driven engineering and design company involved in turnkey electronics manufacturing services (“EMS”), concentrating in precision manufacturing for varied end-use industries like industrial appliances, healthcare, consumer products, automotive, and IT industries.
Syrma SGS Technology Limited is an engineering and design company in electronics manufacturing services (EMS) incorporated in 2004. The Chennai-based company provides integrated solutions to original equipment manufacturers (OEMs) from the preliminary product concept stage to volume production via concept co-creation and product fulfillment.
Product Portfolio
- Printed circuit board assemblies (PCBA)
- Radio frequency identification (RFID) products
- Electromagnetic and electromechanical parts
- Motherboards
- Memory products – DRAM modules, solid state, and USB drives.
Manufacturing
The company works out of 11 manufacturing facilities in north and south India (i.e. Haryana, Himachal Pradesh, Uttar Pradesh, Tamil Nadu and Karnataka). The facilities located in Tamil Nadu are in a special economic zone. The manufacturing facility in Haryana has been set up under the Electronic Hardware Technology Park scheme, which allow the company to avail tax and other benefits.
R&D Oriented
The company has 3 dedicated Research & Development facilities, located in Chennai, Gurgaon and Stuttgart, Germany.
Objective of the Issue
The proceeds from the new issue will be for:
• funding capital expenditure requirements to expand manufacturing and R&D facilities,
• funding long-term working capital requirements besides
• general corporate purposes
Key Points
Strengths
- One of the foremost design and electronic manufacturing services companies in terms of revenue in 2021, with great focus on quality and customer relationships.
- Consistent and growing track record of financial performance.
- Industry specific negative hits will be limited as they offer a versatile and evolving product range and service offerings catering to various types of businesses.
- Also backed by strong R&D department which will ensure 0 innovative slowdown.
- Strong customers across various countries.
- Cutting-edge manufacturing capacities supported by a global supply network.
Risks
- Heavy dependence on 3rd parties for raw material and delivery.
- The strict quality requirements required adds significant expenses for maintaining product quality.
- Global operations pose risks such changes in laws, Covid-19 related shutdowns, foreign exchange policy risks, import and export regulations, etc and can cause delays/ loss of funds.
- Scanty repeat customer base and lack of long-term commitments. Customers cancel or change their production requirements often costing more costing.
- Prone to liability claims against the firm with respect to products designed, manufactured or serviced.
Syrma SGS Financial Snapshot
| Particulars (in Rs. Crores) | FY21 | FY20 | FY19 |
| Revenue | 438.3 | 397.1 | 354.0 |
| EBITDA | 52.9 | 69.9 | 52.9 |
| PAT | 28.6 | 43.9 | 21.0 |
| Particulars (in Rs. Crores) | FY21 | FY20 | FY19 |
| Total Assets | 460.0 | 346.7 | 286.4 |
| Share Capital | 3.5 | 3.5 | 3.5 |
| Total Borrowings | 56.1 | 83.8 | 94.3 |
| Particulars (in Rs. Crores) | FY21 | FY20 | FY19 |
| Net cash generated from / (used in) operating activities | 23.9 | 70.8 | 10.0 |
| Net cash from / (used in) investing activities | -94.4 | -29.1 | -22.1 |
| Net cash flow from / (used in) financing activities | 68.0 | -20.6 | 13.3 |
| Net increase (decrease) in cash and cash equivalents | -2.6 | 21.1 | 1.2 |
Peer Comparison
| Name of the Company | Total Revenue | Basic EPS | Nav Rs. per share | PE | RoNW% |
| Syrma SGS Technology Limited | 444.8 | 3.72 | 28 | NA | 18.74% |
| Dixon Technologies Limited | 6,449.75 | 27.49 | 125.89 | 201.96 | 24.99% |
| Amber Enterprises India Limited | 3,063.62 | 24.96 | 486.92 | 131.02 | 5.94% |
Syrma IPO Subscription Status (Bidding Detail)
The Syrma IPO has been subscribed 0.22 times as of Aug 12, 2022 10:53:00 AM. The PO issue is subscribed 0.44 times in the retail category, 0.02 times in the NII category and 0.00 times in the QIB category
| Category | Subscription (times) |
| QIB | 0.00 |
| NII | 0.02 |
| Retail | 0.44 |
| Total | 0.22 |
How to apply for the Syrma SGS IPO?
- Login to your account in your preferred brokers app. Next, enter the issue in the
“IPO” section. - Select the number of lots you wish to apply for. The price will be indicated next to it.
- Then, enter your UPI ID and click on “submit”.
- Your bid will be placed and you will get a notification for blocking of funds in your UPI app.
- Once you approve the mandate, the amount will be blocked. It will be deducted from your bank account only if you are allotted the IPO.
Syrma IPO Timeline
Syrma IPO opened on Aug 12, 2022, and will close on Aug 18, 2022.
The Syrma SGS IPO bid date is Aug 12, 2022 10.00 A.M. to Aug 18, 2022 5.00 P.M.
The Cut-off time for the confirmation of the UPI Mandate is 12 P.M. on the next day of issue closing day.
| Event | Date |
| Syrma IPO Opening Date | Aug 12, 2022 |
| Syrma IPO Closing Date | Aug 18, 2022 |
| Basis of Allotment | Aug 23, 2022 |
| Initiation of Refunds | Aug 24, 2022 |
| Credit of Shares to Demat | Aug 25, 2022 |
| Syrma IPO Listing Date | Aug 26, 2022 |
FAQS
Does Syrma SGS have a stock?
Yes, the Syrma is expected to list on August 26, 2022.
What is the Syrma SGS IPO application start and end date?
The Syrma IPO application date starts from 12th August and ends on 18th August 2022.
What will the price band of the Syrma SGS IPO be?
The Syrma SGS IPO price band is at Rs. 209 on the lower band and Rs. 220 on the upper band.
Who are the key promoters of Syrma SGS Technologies Ltd?
Some prominent promoters of Syrma SGS Technologies are Sandeep Tandon, Veena Kumari Tandon, Jasbir Singh Gujral and Tancom Electronics.
Who are the lead maagers/book runners for Syrma SGS Technologies Ltd IPO?
ICICI Securities, Dam Capital Advisors and IIFL Securities are the lead managers of the issuing.
What is Syrma SGS IPO GMP?
Syrma SGS IPO GMP is ₹15 as of 12th August 2022.
What is Syrma SGS IPO Kostak Rate?
Syrma SGS IPO Kostak Rate is ₹400 as of 12th August 2022.
What will the Syrma SGS IPO Subject to Sauda be?
Syrma SGS IPO Subject to Sauda is ₹1000 as of 12th August 2022.
What is Syrma SGS IPO Expected Returns?
Syrma SGS IPO Expected Returns is 10%.
Who is the Syrma SGS Technologies IPO Registrar?
The official registar of Syrma IPO is Link InTime India Private Limited.
What is the issue size of the Syrma SGS Technologies Ltd IPO?
The Syrma SGS Tech IPO issue contains fresh issue of equity shares of a value of Rs 766 crore, and an OFS (offer for sale) of 33.69 lakh equity shares.
What is the lot size, minimum & maximum investment amount of the Syrma SGS Technologies Ltd IPO?
The Syrma SGS IPO lot size is 68 shares per lot. An investor has to have a minimum investment of Rs. 14960 (1 Lots at Rs. 220) and a maximum of Rs. 1,94,480 (13 lots at Rs. 220).
Where will the Syrma IPO be listed?
The IPO of Syrma SGS Ltd will be listed on- the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).
How to buy IPO of Syrma?
Please go through our “how to apply for Syrma SGS Technologies IPO” segment.