Syrma SGS Technology IPO opens today: GMP, other details

By siliconindia  |  Friday, 12 August 2022, 09:43:26 AM IST

Syrma SGS Technology IPO opens today: GMP, other details
Syrma SGS Technology IPO (initial public offering) is opening for subscription today and it will remain open for bidding till 18th August 2022. The public issue worth Rs 840 crore aims to raise Rs 766 crore via fresh issues. The price band of the public issue has been fixed at Rs 209 to Rs 210 per equity share and shares of the Chennai-based engineering and design company are now available in grey market as well. According to market observers, shares of Syrma SGS Technology Ltd are trading at a premium of Rs 20 per equity share.
Here we list out important Syrma SGS Technology IPO details:
1] Syrma SGS Technology IPO GMP: As mentioned above, Syrma SGS Technology IPO grey market premium (GMP) today is Rs 20. On Thursday evening, Syrma SGS Technology IPO GMP was Rs 10, which means the grey market premium of the upcoming share has doubled in last 24 hours.
2] Syrma SGS Technology IPO price band: The public issue has been offered at a price band of Rs 209 to Rs 220 per share levels.
3] Syrma SGS Technology IPO subscription: The public issue is opening today and it will remain open till 18th August 2022.
4] Syrma SGS Technology IPO size: The engineering company aims to raise Rs 840 crore from its public offer.
5] Syrma SGS Technology IPO lot size: A bidder will be able to apply in lots and one lot will comprise 68 shares of the engineering and design company.
6] Syrma SGS Technology IPO financials: During FY20, FY21, and FY22, the company reported its revenues at Rs 2,804.3 Mn, Rs 1,931.3 Mn and Rs 2,521.2 Mn, out of which 70.0 per cent, 43.9 per cent and 39.0 per cent, respectively were attributable to its original design manufacturing services. The company has a comprehensive product portfolio with applications across diverse end-use industries. Its products primarily focus on ODMs and OEMs serving enduse industries, including the automotive, healthcare, IT, industrial appliances, energy management, water purification, power supply and consumer products industries.
Over FY20-22, the company reported business growth from key consuming sectors, except the Healthcare sector. Business from the Industrial, Consumer and Automotive sectors increased by 15.8 per cent, 15.1 per cent and 37.4 per cent CAGR, while business from the Healthcare declined by 11.5 per cent CAGR, which cumulatively led to a 21 per cent CAGR growth in proforma consolidated revenue to Rs1,266.6 crore in FY22.
7] Syrma SGS Technology IPO allotment date: Shares allotment of the Syrma SGS Technology is expected on 23rd August 2022.
8] Syrma SGS Technology IPO listing date: The public‪ issue is proposed to list on both NSE and BSE and tentative date for Syrma SGS Technology IPO listing is 26th August 2022.
9] Should you apply: "While Syrma SGS Technology has been running in profits for the past three years, the debt levels are on the low. However, the declining net profit margin raises a question about the future profitability of the company. Given the IPOs are back after a prolonged stint, If the company does well, one may expect more IPOs to open soon. Considering the volatility of 2022, irrespective of how popular, or how fundamentally strong the company is, all have been knocked out clean by the punch of the global downfall. Amid this, whether a new company will survive - only time will tell," said Vinit Khandare, CEO and Founder, MyFundBazaar.
Giving 'buy with caution' tag, Choice Broking says, "The company reported a positive cash flow from operations in FY20 and FY21. Higher operating assets mainly led to a negative operating cash flow in FY22. However, average operating cash flow during the period stood at 60.1cr. Financial liabilities increased by 34.7% CAGR, however, on account of higher equity base debt-to-equity ratio improved from 0.3x in FY20 to 0.2x in FY22. Pre-issue average RoIC and RoE stood at 13.6% and 15%, respectively."

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