Syrma SGS Technology, an electronics manufacturing services (EMS) company, has hired investment banks JM Financial and Kotak Mahindra Capital to manage its proposed Rs 1,000-crore qualified institutional placement (QIP) offering, sources have told Moneycontrol.
Syrma’s plan to tap institutional investors to raise funds comes as its stock has surged by more than 29 percent this year. The stock closed at Rs 762.8 on the BSE on July 30, giving the company a market capitalisation of Rs 13,589.89 crore (approximately $1.55 billion).
The company plans to use the funds for capex as well as for acquisitions, sources said . The timing of the QIP launch is still being discussed and will depend on market conditions in the coming months, they added.
Syrma’s board approved the plan to raise Rs 1,000 crore through a QIP on May 13.
Emails sent to Syrma SGS did not elicit a response till the time of publication.
Syrma is not the only EMS company looking to raise funds. Moneycontrol reported on July 16 that consumer goods maker Amber Enterprises is planning to launch an IPO of its EMS subsidiary, ILJIN Electronics.
Amber plans to raise around Rs 1,200 crore to Rs 1,500 crore through the IPO, most of which will be used to expand manufacturing capacities.
Syrma SGS Technology financials
Syrma designs and manufactures electronics systems, with a focus on high-margin, non-consumer verticals such as automotive, industrials, healthcare, railways, and IT.
The company operates 14 facilities and four R&D centres in India and Germany, with a cumulative production space of over 1.16 million sq ft.
Syrma says its serves more than 300 customers in more than 20 countries, offering end-to-end solutions, including PCB assemblies, box builds, RFID modules, and, more recently, PCBs through a joint venture with South Korea’s Shinhyup Electronics.
The company reported revenue of Rs 3,786.7 crore in FY25, up nearly 20 percent from the previous year.
Its EBITDA (earnings before interest, taxes, depreciation and amortisation) rose sharply from Rs 219.1 crore in FY24 to Rs 323.8 crore in FY25, while EBITDA margins improved from 6.9 percent to 8.6 percent. Profit after tax grew from Rs 124.3 crore to Rs 184.5 crore, with PAT margins improving to 4.8 percent.
For Q1 FY26, the company reported revenue of Rs 953 crore, EBITDA of Rs 95.7 crore, and a profit of Rs 50 crore.
Segment-wise, the industrial vertical contributed 28.4 percent to FY25 revenue, consumer electronics contributed 35.6 percent, automotive and electric mobility vertical contributed 21.7 percent, healthcare and medical devices at 7.7 percent, and railways and IT at 6.6 percent.
The company is strategically pivoting away from low-margin consumer products toward higher-margin segments like automotive, healthcare, and industrials as per a recent investor presentation of the company.
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