The initial public offering (IPO) of Syrma SGS Technology, a provider of electronic design and manufacturing services for global and domestic original design and equipment manufacturers, was subscribed 37% on the first day of the public offer led by strong interest from retail investors.
GEF Capital Partners, an investor in Syrma, is not exiting through the IPO.
Syrma SGS is the first IPO to hit the primary markets since May, after rising inflation and interest rate hikes by central banks globally led to foreign investors pulling money out of emerging markets resulting in a stock market correction. However, July onwards the Indian markets have seen a strong upward momentum and foreign investors too have become net buyers of Indian equity, allowing companies such as Syrma to launch their share sale.
Syrma has priced its IPO in a range of Rs209-220 per share.
On Friday, the retail investor portion was subscribed the highest among all categories at 69%.
Qualified institutional buyers are yet to put in their bids. The reserved portion of non-institutional investors witnessed a subscription of 13%. The public issue will close on 18 August.
The IPO consists of a fresh issue of equity shares aggregating to Rs 766 crore and an offer for sale (OFS) of up to 3,369,360 equity shares.
Ahead of its issue opening, Syrma SGS raised Rs 252 crore from investors such as Nomura, Eastspring Investments, Franklin Templeton, Tata Mutual Fund, ICICI Prudential Mutual fund, IIFL, Kuber India, Abakkus and BNP Paribas as part of its anchor book allocation.
The company aims to raise Rs 840 crore through its IPO.
Promoted and led by Sandeep Tandon and Jasbir Singh Gujral, Syrma SGS, is a technology-focussed engineering and design company engaged in turnkey electronics manufacturing services (EMS) and specialises in precision manufacturing. The company has seen its revenues grow at a CAGR of 20% between FY20 and FY22.
Investment banks Dam Capital Advisors Limited, ICICI Securities Limited, and IIFL Securities Limited, Choice Broking are managing the Syrma SGS share sale.
