Syrma SGS Technology IPO: Issue 37% occupied on day one; Is it necessary to subscribe? Anil Singhvi suggests this

The initial public offering (IPO) of Syrma SGS Technology, a technology-focused engineering and design firm engaged in turnkey electronics manufacturing services, was up 37% on the first day of the issue opening.

At the end of the first day on Friday, the IPO received a tender to purchase 1,0517,900 shares for 2,85,63,816 shares offered. The individual share of individuals attracted the maximum number of investors by subscribing 0.69 times, while the non-institutional investors (NIIs), who made an offer in the amount of more than 10 lakh, the 13% part of 20,01,004 shares were subscribed, according to the bidding details. for the NSE IPO.

Meanwhile, Anil Singhvi, Managing Editor of Business Administration at Zee Corporation, speaking about the IPO, said that experienced management, quality and strong growth prospects for the company are positive factors for this IPO. The downward trend in margins, and valuations that are reasonable, but not very attractive, are a drawback of the Syrma SGS Technology IPO.

Singhvi suggested that investors with a high risk threshold could apply for the long term.

Earlier, Santosh Meena, Head of Research, Swastika Investmart Ltd, said Syrma SGS Technology Limited is one of India’s leading and fastest growing Electronics Systems Design and Manufacturing (ESDM) companies.

With great focus on innovation based on R&D and experienced management team, the company has been able to enter into various growing sectors such as PCBA, Radio Frequency Identification (RFID), Electromagnetic and Electromechanical Parts, and other IT related products, including motherboards, DRAM modules and drives SSD and USB disks.

The company’s business model starts from product concept design and focuses on each part of the overall industry value chain; This gives them a competitive advantage over traditional OEM or ODM-based companies that focus on a single process or specific stages of production, creating lasting relationships with their high-profile clients, Mina said.

Head of Research at Swastika Investmart agreed with Anil Singhvi that the issue was priced at a premium.

“Moreover, their geographically diverse manufacturing locations enable them to efficiently meet the requirements of their customers in North and South India. In addition, the company has had success using inorganic means to add new product lines and expand its geographical reach. The problem has been an excellent valuation priced, which is acceptable Given the growth potential and competitive advantages, we therefore recommend investors to subscribe to the issue.”

The subscription to the Syrma SGS Tech IPO opened on August 12 and will close on August 18. The company has set a price range for the IPO at Rs 209-220 per share. The initial public offering consists of a new issue of shares worth Rs 766 crore and an offer for sale (OFS) of up to 33.69 thousand shares of stock by promoter Veena Kumari Tandon. The company aims to increase Rs 840 crore in the higher version price range

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