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Syrma grey market premium jumps 4 times as Street prepares for its first listing in nearly 3 months

Syrma grey market premium jumps 4 times as Street prepares for its first listing in nearly 3 months

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By Sandeep Singh  Aug 23, 2022 6:07:14 AM IST (Published)

Syrma SGS Tech IPO: Dealers say the company has commanded a grey market premium (GMP) of Rs 15-65 in the past few days. 

Syrma SGS Technology —  a Chennai-based engineering and designing company that provides solutions to original equipment manufacturers — is all set to give Dalal Street its first listing in nearly three months. Market participants are hopeful of a decent secondary market debut for Syrma, reflected in the trend in grey market — an unofficial market for unlisted securities.

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Dealers say Syrma SGS Tech has commanded a grey market premium (GMP) as high as Rs 65 in the recent past — a jump of more than four times in about a week, powering hopes of demand for the stock in the listed world.
Aug 22Rs 65
Aug 20Rs 60
Aug 19Rs 45
Aug 18Rs 35
Aug 17Rs 25
Aug 16Rs 25
Aug 15Rs 25
Aug 13Rs 15
Aug 12Rs 15
Aug 11Rs 20
Aug 10Rs 25
Aug 9Rs 20
Aug 8Rs 28
Source: IPO Watch 
"The Indian primary market is likely to reboot on a positive note after a pause with the listing of Syrma SGS, whose IPO was moderately to fully priced," Abhay Doshi, Co-Founder of Unlisted Arena — a portal that tracks grey markets and deals in unlisted securities — told CNBCTV18.com.
Syrma SGS's initial public offering (IPO), to raise up to Rs 840 crore, saw bids for almost 33 times the shares on offer in the IPO, which was open for subscription from August 12 to August 18.
"The decent subscription numbers should help Syrma SGS list at a premium of 20-25 percent if the broader market conditions are stable," Doshi added.
The IPO — the first to hit the Street in as many as 11 weeks — was a combination of fresh issuance of shares and an offer for sale by existing shareholders.
One can expect Syrma's listing at a premium of Rs 56 to the issue price, said Dinesh Gupta, Co-Founder of UnlistedZone, another firm that deals in unlisted shares.
The Syrma SGS stock is likely to be listed on BSE and NSE on Friday, August 26.
The company's initial share sale received a strong response from different categories of investors.
CategorySubscription (No. of times the shares on offer)
Qualified institutional buyers87.6
Non-institutional investors17.5
Potential investors could bid for Syrma SGS in a range of Rs 209-220 per share in multiples of 68, making one lot worth Rs 14,212-14,960.
Syrma SGS Technology aims to use the proceeds from the IPO to fund its capex and working capital requirements, and for general corporate purposes.
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