7 things you must know about the Syrma SGS Technology IPO
by 5paisa Research Team
11 Aug 2022
Syrma SGS Technology Ltd IPO
Closed
RHP
IPO Details
- Open Date 12-Aug-22
- Close Date 18-Aug-22
- Lot Size 68
- IPO Size -
- IPO Price Range ₹ 209 to ₹220/share
- Min Investment ₹ 14,212
- Listing Exchange NSE, BSE
- Basis of Allotment 23-Aug-22
- Refunds 24-Aug-22
- Credit to Demat Account 25-Aug-22
- Listing Date 26-Aug-22
Syrma SGS Technology Ltd IPO Subscription Status
| QIB | NII | Retail | TOTAL | |
|---|---|---|---|---|
|
Day 1 Aug 12, 2022 |
0.00x | 0.13x | 0.69x | 0.37x |
|
Day 2 Aug 16, 2022 |
0.00x | 0.74x | 1.56x | 0.92x |
|
Day 3 Aug 17, 2022 |
0.71x | 3.58x | 2.66x | 2.27x |
|
Day 4 Aug 18, 2022 |
87.56x | 17.50x | 5.53x | 32.61x |
IPO Synopsis
Syrma SGS Technology, an electronic manufacturing services firm’s opens on 12th August and will be available for subscription until 18th August.
The issue comprises fresh issue of equity shares worth Rs 766 crore, and an offer for sale (OFS) of up to 33.69 lakh equity shares. The company has raised Rs. 110 crores through its pre-IPO placement of 37.93 lakh shares. The price band is set at Rs. 209 per share on the lower end and Rs. 220 per share on the upper band. The lot size is fixed at 68 shares per lot and thereafter multiples of 68. The current GMP is trading at a premium of Rs. 30 so it may list at Rs. 250 apiece.
The IPO will be listed on 26th August and shares will be credited in the DEMAT by 25th August.
Dam Capital Advisors, ICICI Securities and IIFL Securities are the book running lead managers to the issue.
Objective of the Issue
The net proceeds from fresh issue will be utilised for
• funding capital expenditure requirements to expand manufacturing and R&D facilities,
• funding long-term working capital requirements besides
• general corporate purposes
About Syrma SGS Technology Ltd
Syrma SGS, engaged in turnkey electronics manufacturing services, specialises in manufacturing for end-use industries including industrial appliances, automotive, healthcare, consumer products and IT.
The current product portfolio may be categorised as follows: Printed circuit board assemblies (“PCBA”), Radio frequency identification (“RFID”) products, Electromagnetic and electromechanical parts, and Other similar products.
The company has successfully evolved and adapted with the rapid changes in its key markets. For example, for IT industry it manufactured high precision coils for hard disk drives starting in 2005 and USB drives in 2008, while for home entertainment industry, it manufactured set top boxes from 2008 and on the rise of 3G technology in India, it forayed into manufacturing of GSM antennae from 2008 to 2012. Currently the company is working on manufacturing of modules for 5G technology infrastructure.
Its customers include TVS Motor Company, A. O. Smith India Water Products, Robert Bosch Engineering and Business Solution, Eureka Forbes and Total Power Europe B.V.
The company currently operates through 11 strategically located manufacturing facilities in north India -- Himachal Pradesh, and Uttar Pradesh and south India - Tamil Nadu and Karnataka-- and three R&D facilities, two of which are located in India at Chennai, and Gurgaon, and one is located in Germany.
Syrma SGS Technology Ltd Financial Status
Profit and Loss
Balance Sheet
| Particulars (in Rs. Crores) | FY21 | FY20 | FY19 |
|---|---|---|---|
| Revenue | 438.3 | 397.1 | 354.0 |
| EBITDA | 52.9 | 69.9 | 52.9 |
| PAT | 28.6 | 43.9 | 21.0 |
| Particulars (in Rs. Crores) | FY21 | FY20 | FY19 |
|---|---|---|---|
| Total Assets | 460.0 | 346.7 | 286.4 |
| Share Capital | 3.5 | 3.5 | 3.5 |
| Total Borrowings | 56.1 | 83.8 | 94.3 |
| Particulars (in Rs. Crores) | FY21 | FY20 | FY19 |
|---|---|---|---|
| Net cash generated from / (used in) operating activities | 23.9 | 70.8 | 10.0 |
| Net cash from / (used in) investing activities | -94.4 | -29.1 | -22.1 |
| Net cash flow from / (used in) financing activities | 68.0 | -20.6 | 13.3 |
| Net increase (decrease) in cash and cash equivalents | -2.6 | 21.1 | 1.2 |
Peer Comparison
| Name of the Company | Total Revenue | Basic EPS | Nav Rs. per share | PE | RoNW% |
|---|---|---|---|---|---|
| Syrma SGS Technology Limited | 444.8 | 3.72 | 28 | NA | 18.74% |
| Dixon Technologies Limited | 6,449.75 | 27.49 | 125.89 | 201.96 | 24.99% |
| Amber Enterprises India Limited | 3,063.62 | 24.96 | 486.92 | 131.02 | 5.94% |
IPO Key Points
-
Strengths
One of the leading design and electronic manufacturing services companies in terms of revenue in 2021, driven by focus on quality and customer relationships
Consistent track record of financial performance
Diversified and continuously evolving and expanding product portfolio and service offerings catering to customers across various industries, backed by strong R&D capabilities
Established relationships with marquee customers across various countries
State-of-the-art manufacturing capabilities supported by a global supplier network, with a focus on vertical integration
-
Risks
Customers do not make long-term commitments and may cancel or change their production requirements
The strict quality requirements required to be complied with which may add significant expenses to maintain product quality
The global nature of operations exposes the firm to numerous risks such Forex risk, import and export regulations, Covid-19 related shutdowns, changes in laws, etc
Dependence on third party for supply of raw material and delivery of products
problems with the products designed, manufactured or serviced that could result in liability claims against the firm
How to apply for IPO?
-
Login to your 5paisa account and select the issue in the
current IPO section -
Enter the number of lots and price at which you wish to
apply for -
Enter your UPI ID and click on submit. With this, your
bid will be placed with the exchange -
You will receive a mandate notification to block funds in
your UPI app -
Approve the mandate request on your UPI and funds
will be blocked
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IPO FAQs
What is the lot size, minimum and maximum investment required for the Syrma SGS Technologies Ltd IPO?
The lot size of the Syrma SGS IPO is 68 shares per lot. A retail investor can make a minimum investment of Rs. 14960 (1 Lots at Rs. 220) and a maximum of Rs. 1,94,480 (13 lots at Rs. 220).
What is the price band of the Syrma SGS IPO?
The price band of Syrma SGS IPO is set at Rs. 209 on the lower band and Rs. 220 on the upper band.
When does the Syrma SGS Technologies Ltd issue open and close?
The Syrma SGS IPO issue opens on 12th August and closes on 18th August.
What is the size of Syrma SGS Technologies Ltd IPO issue?
The Syrma SGS Tech IPO issue comprises of fresh issue of equity shares worth Rs 766 crore, and an offer for sale (OFS) of up to 33.69 lakh equity shares.
Who are the promoters/key personnels of Syrma SGS Technologies Ltd?
Promoters of Syrma SGS Technologies include Sandeep Tandon, Jasbir Singh Gujral, Veena Kumari Tandon and Tancom Electronics.
What is the allotment date of Syrma SGS Technologies Ltd?
The allotment date for Syrma SGS IPO is 23rd August.
What is the Syrma SGS Technologies Ltd listing date?
The Syrma SGS IPO will be listed on 26th August.
Who are the book runners for Syrma SGS Technologies Ltd IPO?
Dam Capital Advisors, ICICI Securities and IIFL Securities are the lead managers to the issue.
What is the objective of the issue?
The proceeds from the issue will be used as follows:
• funding capital expenditure requirements to expand manufacturing and R&D facilities
• funding long-term working capital requirements besides
• general corporate purposes
How to apply for the Syrma SGS Technologies Ltd IPO?
To apply for the IPO, follow the steps given below:
• Login to your 5paisa account and select the issue in the current IPO section
• Enter the number of lots and price at which you wish to apply for
• Enter your UPI ID and click on submit. With this, your bid will be placed with the exchange
• You will receive a mandate notification to block funds in your UPI app
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