Syrma SGS Technology IPO Day 1: The issue was subscribed 0.37 times on Friday, the first day of the bidding process. Investors bid for over one crore lakh shares of the 2.85 crore shares on offer, according to exchange data.
Syrma SGS Technology's initial public offering (IPO) was subscribed 0.37 times on Friday, the first day of the bidding process. Investors bid for over one crore lakh shares of the 2.85 crore shares on offer, according to exchange data.
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The electronics manufacturing services company’s issue is open for subscription until August 18, 2022. The firm has fixed a price band of Rs 209-220 per equity share for its IPO.
The public issue of Syrma SGS Technology comprises a fresh issue of shares worth Rs 766 crore, and an offer for sale (OFS) of up to 33.69 lakh equity shares by Veena Kumari Tandon. At the upper end of the price band, the company is expected to raise Rs 840 crore.
Half of the issue size has been reserved for qualified institutional buyers (QIBs), 35 percent for retail investors, and the remaining 10 percent for non-institutional investors.
On the first day of subscription, QIBs were yet to open their account, non-institutional investors subscribed to 7.88 lakh shares against 60,03,012 lakh shares reserved for them while retail investors booked over 97.29 lakh shares of the 1.40 crore set aside for them.
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The net proceeds from the issue will be used for funding capital expenditure needs to expand manufacturing, R&D facilities, long-term working capital requirements and general corporate purposes, the company said.
This is the first company to tap the primary market in two-and-a-half months. Prior to that, the IPO of Aether Industries was opened for public subscription during May 24-26. Companies were not taking the IPO route for fundraising due to the volatility in the markets.
(With PTI inputs)