What GMP suggests about its market debut


Registration of Syrma SGS technology tomorrow: Syrma SGS Technology, a Chennai-based technology-focused engineering and design company specializing in turnkey electronics manufacturing (EMS) services, was subscribed 32.61 times in the last day. closed last week. The Rs 840 crore IPO received bids for 93,14,84,536 shares against 2,85,63,816 shares offered. Syrma SGS Technology’s offering consists of a new issue of capital shares aggregating up to Rs 766 crore and a sale offer of up to 33.69 lakh capital shares by promoter Veena Kumari Tandon.

The company said the net proceeds from the new issue will be used to fund capital expenditure needs to expand manufacturing, R&D facilities, long-term working capital requirements and general business needs. .

GMP today

Shares of Syrma SGS Tech command a (GMP) premium of Rs 48 in the gray market today, according to market watchers. Analysts have suggested that the issue price remaining below the pre-IPO placement price, stronger financial performance, strong customer relationships, a diverse product line and experienced promoters could be the root causes of the premium. business in the gray market.

An unofficial trading platform is the Gray Market. Trading begins with the release of an IPO price range and continues until the stock is listed.

Manoj Dalmia, Founder and Director of Competent Shares, said, “Syrma Gray Market Premium (GMP) from public issue has increased from Rs 20 to Rs 55 per share in the gray market. According to market watchers, after the close of public offering, Syrma SGS Technologies GMP IPO remained stable around Rs 55 despite two days of selling in the market. Now, the IPO has moved from Rs 50 GMP to Rs 55. We expect the listing to be around the Rs 260-270 range. Based on its financials and earnings, the show is valued at a P/E of 50+, even at a lower IPO price.

What Do Analysts Say About Rating Gains?

Ravi Singhal, CEO of GCL, said: “The shares look good at around Rs 320. Long-term investors continue to invest while short-term traders can take full profit.”

Dalmia said, “The segment in which SSTL operates is also poised to have good prospects and investors can look at it with a medium to long term outlook.”

Abhay Doshi, founder of UnlistedArena.com, which specializes in pre-IPO and unlisted stocks, said, “D-Street will witness an IPO after a long hiatus. Syrma SGS received a decent response in all categories. Due to the response, Syrma SGS is expected to trade at a 20-25% premium to the issue price if market conditions remain favourable.

The company’s shares are expected to list on the BSE and NSE stock exchanges on Friday, August 26, 2022.

Syrma SGS Technology, incorporated in 2004, is a technology driven engineering and design company based in Chennai specializing in turnkey electronics manufacturing (EMS) services. Its customers include TVS Motor Company, AO Smith India Water Products, Robert Bosch Engineering and Business Solution, Eureka Forbes and Total Power Europe BV.

It operates through eleven manufacturing plants in Himachal Pradesh, Haryana, Uttar Pradesh, Tamil Nadu and Karnataka and has three R&D facilities located in Tamil Nadu, Haryana and Germany.

The views and investment advice of the experts in this News18.com report are their own and not those of the website or its management. Users are advised to check with certified experts before making any investment decision.

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