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Syrma SGS Technology IPO sees limited investor interest on first day of bidding

Syrma SGS Technology is a Chennai-based company engaged in electronic manufacturing services (EMS) with expertise in engineering and design of electronic products.

August 12, 2022 / 12:56 PM IST
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The initial public issue (IPO) of Syrma SGS Technology saw limited investor interest on August 12, the first day of bidding.

As of 11.40 am, the issue received applications for 19,52,416 shares against 2,85,63,816 shares on offer – meaning a subscription of 7 percent. All applications came virtually from retail investors while non-institutional and institutional investors remained dormant.

The price band for the offer has been set at Rs 209 to Rs 220 per share. The company’s shares will debut on the stock exchanges on August 26. Even as it is the first IPO in months, most analysts are positive on the issue and advise to subscribe.

“At the higher price band, the IPO is valued at a 24.1 percent discount to the pre-IPO placement price of Rs 290, which may be considered favourable by retail investors, but the company has demanded an EV/sales multiple of 2.5x (to its FY22 proforma consolidated sales), which is at premium to the peer average,” Choice Broking said in a report. “Thus the issue seems to be fully priced but considering the high growth potential in the electronic manufacturing sector, we are recommending a ‘Subscribe with Caution’ rating for the issue.”

Syrma SGS Technology is a Chennai-based company engaged in electronic manufacturing services (EMS) with expertise in engineering and design of electronic products. It provides services and solutions to original equipment manufacturers – from the initial product concept stage to volume production.

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Syrma’s product portfolio includes printed circuit board assemblies, radio frequency identification products, electromagnetic and electromechanical parts, memory products like USB drives and motherboards.

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first published: Aug 12, 2022 12:22 pm
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