Syrma SGS Tech IPO: The initial share sale — the first to hit the Street in 11 weeks — closed for subscription with bids for 32.6 times the total shares on offer with strong participation from different categories of investors.
Syrma SGS Technology's initial public offering (IPO) to raise up to Rs 840 crore was subscribed an overall 32.6 times on Thursday — the final day of the bidding process. The IPO — the first to hit the Street in as many as 11 weeks — was a combination of fresh issuance of shares worth up to Rs 766 crore and an offer for sale (OFS) worth up to Rs 74 crore by existing shareholders.
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By the end of the fourth day of bidding, the Syrma SGS IPO received bids for 93.1 crore shares as against the total 2.9 crore crore shares on offer, according to provisional exchange data.
The IPO received a strong response across different categories of investors.
|Category||Subscription (No. of times the shares on offer)|
|Qualified institutional buyers||87.6|
Under the Syrma IPO, potential investors could bid for shares in a range of Rs 209-220 apiece in multiples of 68. That makes one lot of Syrma SGS shares worth Rs 14,212-14,960.
Syrma SGS Technology, a Chennai-based engineering and designing company, provides solutions and integrated services to original equipment manufacturers. The company aims to use the proceeds from the IPO to fund its capex and working capital requirements, and for general corporate purposes.
Syrma SGS commanded a premium of Rs 20-28 in the grey market — or an unofficial market for unlisted securities — days ahead of the launch of the the IPO. Learn about what grey market really is
The Syrma SGS Technology IPO 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.
(Edited by : Sandeep Singh)