Syrma SGS Technology IPO | 10 key things to know about the public issue

Syrma SGS Technology IPO | Half of the issue size is reserved for qualified institutional investors including anchor book, 15 percent of the offer for allocation to non-institutional investors and the remaining 35 percent is reserved for retail investors.

Here are 10 key things to know about public issue:

1) IPO Date The offer will open for subscription on August 12 and the closing date will be August 18. The anchor book will be opened for a day on August 11.

2) Price Band

The company has fixed a price band for the offer at Rs 209 and Rs 220 per share

3) IPO Size

The initial public offering comprises a fresh issue of Rs 766 crore and an offer for sale of 33.69 lakh equity shares.

4) Utilisation of Funds

Syrma will utilise its fresh issue money for funding the capital expenditure requirements for development of its research & development facility. The funds will also get utilised for expansion or setting up of manufacturing facilities, and working capital requirements besides general corporate purposes.

5) Shares Allocation to Investors and Lot Size

Half of the issue size is reserved for qualified institutional investors including anchor book, 15 percent of the offer for allocation to non-institutional investors and the remaining 35 percent is reserved for retail investors.

6) About the Company

Syrma SGS Technology is an engineering and design company engaged in turnkey electronics manufacturing services (EMS). It is specialised in precision manufacturing for diverse end-use industries, including industrial appliances, automotive, healthcare, consumer products and IT industries.

7) Financials

Syrma reported a 16.6 percent on-year growth in proforma profit (which assumes the acquisition of SGS Tekniks and Perfect ID in April 2019) at Rs 76.46 crore for the year ended March 2022 on the strong top line and operating performance. Proforma revenue from operations grew by 43 percent to Rs 1,266.6 crore and EBITDA increased by 23 percent to Rs 143.70 crore compared to the year ending March 2021. EBITDA is earnings before interest, tax, depreciation, and amortisation.

8) Promoters

Promoters Sandeep Tandon, Jasbir Singh Gujral, Veena Kumari Tandon, and Tancom Electronics - hold 57.12 percent equity stake in the company at the time of filing RHP, while the total promoters' shareholding in the company is 61.47 percent. Investors including South Asia Growth Fund II, Holdings LLC, and Malabar Select Fund own 7.53 percent and 1.22 percent stake, respectively in the company.

9) Management

Sandeep Tandon is the Executive Chairman of the company, while Jasbir Singh Gujral is theManaging Director. Jaideep Tandon, Jayesh Doshi, and Sridhar Narayan are the Non-Executive Directors on the board, while Kunal Shah, Anil Nair, Hetal Gandhi, Smita Jatia, and Bharat Anand are independent directors.

10) IPO Share Allotment and Listing Date

The company will finalise the basis of the allotment of shares by August 23 and will initiate refunds to unsuccessful investors by August 24. Equity shares will get credited to the Demat accounts of eligible investors by August 25. And finally, the trading in equity shares on the BSE and NSE will start with effect from August 26.