IPOSyrma SGS Technology IPO Details – GMP Price, Lot Size, Share Price

August 12, 2022by Sruthi Nair0

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

  1. Printed circuit board assemblies (PCBA)
  2. Radio frequency identification (RFID) products
  3. Electromagnetic and electromechanical parts
  4. Motherboards
  5. 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?

  1. Login to your account in your preferred brokers app. Next, enter the issue in the
    “IPO” section.
  2. Select the number of lots you wish to apply for. The price will be indicated next to it.
  3. Then, enter your UPI ID and click on “submit”.
  4. Your bid will be placed and you will get a notification for blocking of funds in your UPI app.
  5. 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.

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DISCLAIMER: Online Trading Institute is providing courses content and any related materials (including newsletters, blog post, videos, social media and other communications) for educational purposes only. We are not providing legal, accounting, or financial advisory services, and this is not a solicitation or recommendation to buy or sell any stocks, options, or other financial instruments or investments.