Home » Syrma SGS Tech IPO sails through on Day 3, NII portion fully subscribed

Syrma SGS Tech IPO sails through on Day 3, NII portion fully subscribed

by WorldFinance
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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.


According to data from BSE, investors made bids for 6,48,39,020 equity shares or 2.27 times compared to the 2,85,63,816 equity shares offered for the subscription by 5 pm Wednesday.

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 company has reserved 50 per cent of the net offer for qualified institutional buyers (QIBs), whereas non institutional buyers (NIIs) will get 15 per cent allocation. Remaining 35 per cent shares will be given to the retail bidders.

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.

Brokerage firms have mixed opinions on the counter. However, the majority of them have suggested subscribing to the issue with some word of caution over the fully priced valuations in the growing sector.

Arafat Saiyed, Senior Research Analyst, 
Reliance
 NSE 0.52 % Securities said that the IPO is at discount to pre IPO placement and it is one of the fastest growing Indian ESDM companies with a track record of technical innovation and marquee customers.

“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.


 


 

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