Home Business Syrma SGS Technologies IPO GMP, Subscription, Risks, Other Details; Should you Invest?

Syrma SGS Technologies IPO GMP, Subscription, Risks, Other Details; Should you Invest?

Syrma SGS Technologies IPO GMP, Subscription, Risks, Other Details; Should you Invest?


Syrma SGS Technology IPO: Syrma SGS Technology’s initial public offering (IPO) has so far gotten a good response from retail investors. Syrma SGS Technologies IPO opened for subscription on August 12, 2022, and it will remain open for bidding till August 18, 2022.

Syrma SGS Technology IPO: Issue Size, Price Band

The electronics system design and manufacturing company, Syrma SGS Technology, aims to raise Rs 766 crore through the issue and Rs 74.12 crore via offer for sale at the upper price band. The price band for the offer has been fixed at Rs 209-220 a share.

The company intends to use the funds raised for multiple purposes such as funding capital expenditure requirements for the development of an R&D facility and expansion/setting up of manufacturing facilities. It will also use the proceeds for funding long-term working capital requirements and general corporate purposes.

Syrma SGS Technology IPO: Subscription Status

Syrma SGS Technology’s offer has been subscribed 92 per cent till second day of the bidding, receiving bids for 2.62 crore equity shares against an offer size of 2.85 crore shares. According to BSE data, retail investors bought 1.56 times the shares set aside for them by Day 2 of the bidding. Non-institutional investors had subscribed to 74 per cent of their quota of shares. Qualified institutional buyers (QIBs) bought 1,904 shares against the reserved portion of 85.53 lakh shares. Meanwhile, the tech company has reserved half the issue size for QIBs.

Syrma SGS Technology IPO: Risks

Highlighting the key concerns, Choice Broking said unfavorable government policies and regulations, delay in expanding the capacity, unfavorable sales mix, unfavorable forex movements, working capital intensive operations, and competition, remain key areas of concern.

Syrma SGS Technology IPO: GMP Today

According to market observers, Syrma SGS Technologies shares are available at a premium of Rs 40 per share. Syrma SGS Technologies IPO grey market premium (GMP) today is Rs 40, which is Rs 15 higher from its Tuesday evening grey market premium of Rs 25. Market observers said that the rise in grey market premium of Syrma SGS Technologies shares can be attributed to the positive sentiments at the secondary markets. However, stock market experts say investors should look at the balance sheet of the company as it would give a concrete picture of the company’s financials.

Syrma SGS Technology IPO: Should you Subscribe?

Arafat Saiyed, senior research analyst at Reliance Securities, said: “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.”

Similarly, Santosh Meena, head of research at Swastika Investmart, said: “The issue has been priced at a premium valuation, which is acceptable given its growth potential and competitive advantages. And therefore, we recommend investors to subscribe to the issue.”

The views and investment tips by experts in this News18.com report are their own and not those of the website or its management. Users are advised to check with certified experts before taking any investment decisions.

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