Syrma SGS Technology is all set to debut on Dalal Street on Friday. Syrma SGS Technology will get listed on both the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) at 10 am on August 26. Syrma SGS Technology IPO received decent response from the investors during the subscription period. The public offer was subscribed 32.61 times over the 2.85 crore shares that were on offer.
The public offer of electronic manufacturing services firm, opened from August 12-18. The price band for the offer was fixed at Rs 209-220 per share. Syrma SGS Technology IPO comprised a fresh issue of Rs 766 crore and an offer for sale of 33.69 lakh equity shares. At upper end of price band, the company aimed to raise Rs 840 crore.
Syrma SGS Technology IPO received bids of over 93.14 crore shares against the total issue size of over 2.85 crore shares, according to the data available with the National Stock Exchange (NSE). The shares allocated for the qualified institutional buyers (QIBs) was booked 87.56 times. The portions set aside for non institutional investors (NIIs) was booked 17.50 times. The category reserved for retail individual investors (RIIs) was subscribed 5.53 times.
Syrma SGS Technology IPO Listing Today: What to Expect
“Syrma SGS IPO witnessed strong participation from institutional investors as well as retail investors. Although the valuations were on the premium side still some listing gains could be seen based on overall interest shown by investors and also considering the company operates in one of the fastest growing sectors in the current market,” said Narendra Solanki head, equity research, Anand Rathi Shares and Stock Brokers.
Considering the better than expected investors demand one can expect a 25-30 per cent listing gain ahead of rebound in secondary markets, said Prashanth Tapse, research analyst, senior VP research, Mehta Equities.
“We are optimistic on the electronics export business model, providing a high – value integrated design and production solution for internationally recognized OEMs. On valuation , at upper price band, the issue is asking for a market cap of Rs 3,877 crore and based on FY21 earnings, the issue seems to be reasonably priced compared to industry peers.” Tapse mentioned adding, “We still believe that with high focus on high-margin product portfolio and expansion plans ahead, Syrma SGS Technology is well placed to tap increasing demand EMS products globally.”
Syrma SGS Technology IPO GMP Ahead of the Listing
The grey market premium of Syrma SGS Technology IPO jumped to Rs 55 ahead of the listing. Unlisted stocks of Syrma SGS Technology were trading at Rs 275 per equity share at the grey market, around 25 per cent higher than the upper price band of the IPO.
“Syrma SGS Technology grey market premium (GMP) of the public issue has gone up to Rs 55 from Rs 20 per equity share. We expect the listing to be around Rs 260-270 range. Based on its financial data and earnings, the issue is priced at a P/E of 50+ even at lower IPO pricing. The segment in which Syrma SGS Technology is operating, is also poised for bright prospects ahead and investors may consider it with medium to long-term perspectives,” said Manoj Dalmia, founder and director, Proficient equities Private Limited.