Syrma SGS Technology Ltd. IPO
Syrma SGS Technology Ltd.
IPO Listing Details
Listed On
BSE & NSE
Listed On
Issue Price
₹220
Issue Price
Listing Price
₹262
Listing Price
Listing Gains
+₹42.00 (+19.09%)
Listing Gains
IPO Details
Bidding Dates
12 Aug - 18 Aug '22
Bidding Dates
Min. Investment
₹14,212
Min. Investment
Lot Size
68.00
Lot Size
Price Range
₹209 - ₹220
Price Range
Issue Size
597 Cr
Issue Size
Subscription Rate
- Retail Individual Investor5.53x
- Non-Institutional Investor17.50x
- Qualified Institutional Buyers87.56x
- Employees
About Company
Syrma SGS Technology is one of the leading exporters of electronics in India. The company provides a high-value integrated design and production solution for OEMs. Incorporated in 2004, Syrma SGS Tech is one of the leading Electronics System Design and Manufacturing (ESDM) company and focuses on technology-based solutions and Original Design Manufacturer (ODM) business.
It is the first company in India to manufacture Radio Frequency Identification (RFID) products and continues to lead the industry.
Its product portfolio includes Printed circuit board assemblies (PCBA), Electromagnetic and electromechanical parts, Radio frequency identification (RFID) products, Motherboards and Memory products - DRAM modules, solid state, and USB drives. Syrma SHS Tech has eleven manufacturing facilities across India.
The initial public offering (IPO) of Syrma SGS Technology will open for subscription on August 12 and close on May 18. The issue size of the IPO is Rs 840 crore and consists of a fresh issue of shares worth Rs 766 crore and an offer for sale (OFS) of up to 3,369,360 shares. The IPO price band has been fixed at Rs 209 to Rs 220 per share.
The company has already undertaken a pre-IPO Placement of 3,793,103 equity shares at a price of Rs 290 per share, aggregating to Rs 110 crore on May 5, 2022.
The company proposes to utilize the net proceeds from the fresh issue towards funding capital expenditure requirements, long-term working capital requirements and general corporate purposes.
Financial Snapshot -Syrma SGS Technology Ltd IPO
Syrma SGS Technology has shown sharp revenue growth over the years. In the table provided below, you can get a snapshot of its financials in recent years. It is always recommended to read the detailed financial statements and the draft red herring prospectus before investing in any new company via their IPO. This data regarding their financial performance and stability will help investors make a more informed decision.">
| Financial Year | Total Assets | Total Revenues | Profit After Tax |
|---|---|---|---|
| March 2020 | Rs 346.69 crore | Rs 397.08 crore | Rs 43.88 crore |
| March 2021 | Rs 460.01 crore | Rs 438.30 crore | Rs 28.62 crore |
| March 2022 | Rs 914.73 crore | Rs 646.26 crore | Rs 30.61 crore |
Why should you invest in Syrma SGS Technology Ltd. IPO?
Syrma SGS Tech operates in the electronics manufacturing services segment that seems to have a positive outlook going ahead. It is also focusing on a high-margin product portfolio. The company has sound financials and is recognised as a leader in memory modules with deep expertise. Its manufacturing facilities in Tamil Nadu are placed in SEZs, allowing them to take advantage of specific tax and other incentives in relation to the products manufactured at these facilities.
Syrma SGS Technology IPO Noteworthy Highlights
Check out some of the key details and information about Syrma SGS Technology IPO before investing:
- Syrma SGS Tech is as a technology-focused engineering and design company engaged in turnkey electronics manufacturing services (EMS).
- The company specialises in precision manufacturing for diverse end-use industries, including industrial appliances, automotive, healthcare, consumer products and IT industries.
- The company is a leader in high mix low volume product management and is present in most industrial verticals.
- It is one of the leading PCBA manufacturers in India, supplying to various OEMs and assemblers in the market. It is also amongst the top key global manufacturers of custom RFID tags.
Important Dates -Syrma SGS Technology Ltd IPO
| Application opens on | 12th August 2022 |
| Last date of application | 18th August 2022 |
| Date of Allotment | 23rd August 2022 |
| Refund begins from | 24th August 2022 |
| Credit of shares to Demat | 25th August 2022 |
| Listing date | 26th August 2022 |
Syrma SGS Technology Ltd. IPO - SWOT Analysis
Strengths
Syrma SGS Technology has global sourcing capabilities and long-standing relationships with its vendors to consolidate and bring down the cost of raw materials and components, and explore alternative components, vendors, materials, and processes to reduce product cost and bring products faster to market.
Weaknesses
Out of the 11 manufacturing facilities currently operated by the company, two facilities collectively contribute to more than 80% of its total revenue from operations. Moreover, the company has not declared any dividends for the reported periods.
Opportunities
Syrma SGS Tech has acquired SGS Tekniks in September 2021 and Perfect ID in October 2021 as a part of its business strategy to expand its market share in the EMS sector and widen its geographical footprint in the national market. The acquisition of SGS Tekniks provides ample headroom for growth as there is almost no overlap of customers and the geographies being serviced by both.
Threats
The global nature of the company’s operations exposes it to numerous risks that could materially adversely affect its financial condition and results of operations. The company also operates in a highly competitive industry. The markets in which its customers compete are characterized by consumers and their rapidly changing preferences, advancement in technology and other related factors including lower manufacturing costs and therefore as a result, the company may be affected by any disruptions in the industry.
Syrma SGS Technology IPO Grey Market Premium
| Date | GMP |
|---|---|
| 11th August | Rs.20 |
| 10th August | Rs.25 |
A competitive analysis
There are more than 30 organized companies in the EMS industry but the commercial semiconductor fabrication operation is almost non-existent. The competition concentration is moderate as the top 3 companies account for 28.5% of the market.
Major players are Flextronics, Jabil, Dixon, SFO, Resolute, our Company, Elin, NTL, Cyient and Foxconn.
Syrma SGS Technology has shown Dixon Technologies and Amber Enterprises as its listed peers in the offer documents. Take a look at these competitors:
| Company Name | Market Capitalisation(Rs.Cr) | 1-Year Return |
|---|---|---|
| Dixon Technologies | 22,935 | -7.6% |
| Amber Enterprises | 7,615 | -20% |
How to apply for Syrma SGS Technology Ltd. IPO?
You can apply for the Syrma SGS Technology Ltd. IPO in these ways:
UPI
Link your personal bank A/C to a trusted UPI ID and map it with your TradeSmart account. Now, proceed further to book your IPO. On acceptance of the mandate, the bid amount will get blocked in your bank account Learn more.
Demat Account
1. If you are an Existing TradeSmart demat account holder and wish to apply for an Syrma SGS Technology Ltd. click here.
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