Syrma SGS IPO, GMP trend: Syrma SGS is set to launch an IPO on Friday, August 18. This is the first IPO to hit the Street in 11 weeks.
Dalal Street is all set to have its first IPO or initial public offering in as many as 11 weeks. The IPO of Syrma SGS Technology — a Chennai-based engineering and designing company — will open for subscription on August 12 and close on August 18.
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Dealers say Syrma SGS is already commanding a premium of Rs 20 in the grey market — or an unofficial market for unlisted securities.
Here's what the trend in the grey market looks like for Syrma SGS:
|Date||Grey market premium (in rupees)|
|(Source : IPO Watch)|
"After a long pause, Syrma SGS is set to end the drought in the primary market.The company has a diverse customer base and product portfolio. Syrma's top line (revenue) is growing steadily though the margin has contracted lately," Abhay Doshi, Co-Founder of Unlisted Arena — a portal that tracks grey markets and deals in unlisted securities — told CNBCTV18.com.
"On the valuation front, the issue looks moderately to fully priced," Doshi said.
Incorporated in 2004, Syrma SGS Tech is engaged in electronics manufacturing services (EMS), and provides solutions and integrated services to original equipment manufacturers.
The initial share sale of Syrma comes at a time when the headline indices on Dalal Street have scaled four-month highs but are yet to revisit their record highs of October 2021. Many experts believe high valuations are likely to prevent the Nifty50 from making new highs for the time being.
Syrma's IPO is a combination of fresh issuance of shares worth up to Rs 766 crore and an offer for sale worth up to Rs 74 crore by existing shareholders.
The company aims to use the proceeds from the IPO to fund its capex and working capital requirements, and for general corporate purposes.
Potential investors will be able to bid for Syrma SGS shares in a range of Rs 209-220 apiece in multiples of 68 under the subscription window.
Simply put, one lot of Syrma shares will cost investors up to Rs 14,960.
The Street has so far this year seen 18 primary market offerings.
Though most of these debutants have managed to command a premium over their issue prices, their IPOs failed to attract the kind of investor response seen in 2021.
First Published: Aug 10, 2022 3:23 PM IST