The initial public offering (IPO) of Syrma SGS sailed through on Wednesday as the company received a decent response from investors during the third day of the bidding process.
The issue kicked off on Friday, August 12, and closed for subscription today. The company sold its shares in the range of Rs 209-220 apiece to raise Rs 840 crore through the primary route.
The quota for retail bidders was subscribed 2.66 times, whereas the allocation for non institutional investors (NIIs) fetched 3.58 times bidding. However, the quota for institutional investors was not even off to mark.
The net proceeds from the fresh share issue will be utilised for funding capital expenditure requirements to expand manufacturing and R&D facilities and to fund long-term working capital requirements.
Arafat Saiyed, Senior Research Analyst,
“Syrma is well placed to capitalize on domestic and global opportunities. Owing to superior technology based manufacturing domain, healthy product mix, diversified product portfolio, strong R&D capabilities, and capacity addition,” he added with a subscribe rating.