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.
Recommended ArticlesView All
Here’s why 2022 has been a very different year for two of India’s biggest AC makers
IST5 Min(s) Read
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 22||Rs 65|
|Aug 20||Rs 60|
|Aug 19||Rs 45|
|Aug 18||Rs 35|
|Aug 17||Rs 25|
|Aug 16||Rs 25|
|Aug 15||Rs 25|
|Aug 13||Rs 15|
|Aug 12||Rs 15|
|Aug 11||Rs 20|
|Aug 10||Rs 25|
|Aug 9||Rs 20|
|Aug 8||Rs 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.
|Category||Subscription (No. of times the shares on offer)|
|Qualified institutional buyers||87.6|
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.