Electronics system design and manufacturing company Syrma SGS Technology shares had a blockbuster day on August 26, as the stock skyrocketed by 42 percent given the healthy subscription demand for its IPO and a diversified product portfolio with marquee customer base.
It started off the first day's trade with 19 percent gains at Rs 262 on the BSE, and climbed up to Rs 314.40 before closing the session at Rs 313, up 42.3 percent over its issue price of Rs 220.
On the National Stock Exchange, it settled with 41.14 percent gains at Rs 310.50.
In terms of volumes, Syrma traded with volume of 5.99 crore shares on the NSE, while on the BSE, it was 54.77 lakh shares.
"The company's good listing can be attributed to positive market sentiments, outstanding prospects, and a good response from the investors. We believe that the company deserves this premium multiple due to its phenomenal growth prospects," said Santosh Meena, Head of Research at Swastika Investmart.
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With a huge focus on R&D-based innovation and an experienced management team, the company has managed to enter into various growing segments such as printed circuit board assemblies, radio frequency identification (RFID), electromagnetic and electromechanical parts, and other information technology-related products.
The company's geographically diversified manufacturing locations and the business model which starts from product concept design & focuses on every segment of the overall industry value chain give them a competitive advantage over other players, Santosh said.
Syrma SGS Technology has garnered Rs 840 crore through its public issue including fresh issue of Rs 766 crore, which will be utilised for expansion of facilities, working capital requirements and general corporate purposes.
The price band for the issue, which was opened for subscription during August 12-18, was Rs 209-220 per share.
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