Synoptics Technologies IPO GMP (Grey Market Premium)
Synoptics Technologies IPO worth ₹54.03 crore comprises of a fresh issue and an offer for sale (OFS) by promoters and early shareholders. It is a fixed price issue and the price has been fixed at ₹237 per share. The company will issue a fresh issue portion of 14.80 lakh shares at the price of ₹237 per share aggregating to a total fund raising of ₹35.08 crore. The offer for sale (OFS) by the company will entail the sale of 8.00 lakh shares at the price of ₹237 per share aggregating to an OFS size of ₹18.96 crore. The overall size of the IPO, therefore, would entail the issue of 22.80 lakh shares, which at the fixed price of ₹237 per share aggregates to a total issue size of ₹54.03 crore
The stock of Synoptics Technologies IPO has a face value of ₹10 and bidders can only bid in minimum lot size of 600 share each, entailing a minimum investment of ₹142,200 in the IPO at the fixed price level of ₹237 per share. That is also the maximum that a retail investor can bid in the IPO. HNIs, NIIs can bid for minimum of 2 lots of 1,200 shares entailing an investment of ₹284,400. The table below captures the lot sizes permissible.
As per the terms of the offer, 50% of the net offer is reserved for the retail investors and the balance 50% for non-retail investors belonging to the HNI / NII category. It is a Book Built issue with the price band and the final price will be discovered through book building process. NNM Securities Ltd will act as the market maker for the SME IPO of Synoptics Technologies Ltd. The company has set aside 114,000 shares for the market maker.
The issue opens for subscription on 30th June 2023 and closes for subscription on 05th July 2023 (both days inclusive). The basis of allotment will be finalized on 10th July 2023 and the refunds will be initiated on 11th July 2023. In addition, the demat credits are expected to happen on 12th July and the stock is scheduled to list on 136th July 2023 on the NSE SME segment. This is the segment, in contrast to the mainboard, where IPOs of small and medium enterprises (SMEs) are incubated. The grey market price (GMP) trading normally starts about 4-5 days prior to IPO opening and continues till the listing date. In the case of Synoptics Technologies Ltd, we already have GMP data for the last 2 days, which should give a reasonable picture of the likely listing.
There are 2 factors that impact the GMP. Firstly, the market conditions have a deep impact on the GMP, especially the liquidity conditions in the market. Secondly, the extent of subscription for the IPO has a deep impact on the GMP as it is indicative of investor interest in the stock. GMP can also technically be in negative, which means the stock would list at a discount to the issue price.
There is one small point to remember here. The GMP is not an official price point, just a popular informal price point. However, in most cases, it has been observed to be a good informal gauge of demand and supply for the IPO. Hence it does give a broad idea of how the listing is likely to be and how the post-listing performance of the stock would be.
GMP tends to be a good mirror of the real stock story. More than the actual price, it is the GMP trend over time that gives insights about which direction the wind is blowing. Here is a quick GMP summary for Synoptics Technologies IPO for which the data is available.
In the above case, the GMP trend shows that the grey market premium has opened at around ₹20, but now its down by ₹-8 on the second day on which GMP data is available. Of course, we have to await for the actual subscription numbers to flow in when the issue opens for subscription and also watch the progress, as that would have a very significant impact on the GMP. In the past, stocks which got oversubscribed in the IPO also saw a very robust positive shift in the grey market pricing. For a start, Synoptics Technologies Ltd has shown reasonably good traction in the grey market.
If you consider the fixed price level of the IPO of Synoptics Technologies Ltd at ₹237, then the likely listing price is being signalled at around ₹259 per share as per the GMP indicator on 27th June 2023. This is dynamic and keeps changing. One data point to track will be the subscription update on the stock as that would chart the GMP course.
The GMP of ₹22 on the fixed IPO price of ₹237 indicates a listing premium of a healthy 9.28% for the IPO of Synoptics Technologies Ltd over the listing price. That pre-supposes a listing price of approximately ₹259 per share, when Synoptics Technologies Ltd lists on 13th June 2023. Of course, these are approximations, so you must keep a margin of safety. One needs to observe the trend of GMP closely as that gives the best hints on listing status. Look at the time series trend than on numbers.
Synoptics Technologies Ltd, is a fixed price SME IPO on the NSE which is opening for subscription on 30th June 2023. It was incorporated in 2008 to provide IT related services and solutions. The company offers specialized solutions in very niche areas like IT infrastructure, branch connectivity, network implementation, network support, route set-up, switch set-up, configuration etc. Synoptics Technologies Ltd also designs solutions for clients looking to put applications on the cloud, including cloud migration and cloud set-up.
Synoptics Technologies helps businesses in their Digital journey. It has a premium B2B client list which includes names like TATA Communications, BOB Financial Services, Blue Dart Express, Lifestyle International, Shoppers Stop Limited, H&M Retail, GIC Housing Finance, Motilal Oswal Financial Services etc. It has also recently signed up to become the authorized private LTE partner for 5G services nationally. It is headquartered in Mumbai and has 17 regional offices. The issue is being lead managed by First Overseas Capital Ltd while Bigshare Services Private Limited will be the registrars to the issue.
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