Syrma SGS Technology debuts at 19% premium on listing; share zooms 40%

Marking a strong debut on the bourses, shares of Syrma SGS Technology clocked in 19% gains on its listing day today. The stock listed at over 18% premium at ₹262 on the BSE and ₹262 on the National Stock Exchange (NSE) against the upper band issue price of ₹220.

Syrma SGS Technology is a Chennai-based technology-focused engineering and design firm engaged in turnkey electronics manufacturing services, specialising in precision manufacturing for diverse end-use industries.

The stock rose to the intra-day high of ₹309.80 at 12.39 PM, marking an overall gain of 40.36% over the issue price. The scrip is currently trading near the upper price band of ₹314.40.

At 12.47 PM, a total of 32.24 lakh shares exchanged hands on the counter. With the zooming share price, the company's market cap has risen to ₹5,419.93 crore.

Equity shares of Syrma SGS Technology Ltd. were listed and admitted to dealings on the exchange in the list of ''B'' Group Securities from today.

The Syrma SGS Technology IPO was subscribed 32.61 times on the final day last week. Bids were received for 93,14,84,536 shares against 2,85,63,816 shares on offer for the ₹840 crore-IPO.

The Qualified Institutional Buyers (QIBs) category was subscribed 87.56 times; the non-institutional investors' quota was subscribed 17.50 times; and the retail individual investors (RIIs) quota was subscribed 5.53 times.

The emerging tech company's public issue comprised fresh issue of equity shares worth ₹766 crore, and an offer for sale (OFS) of up to 33.69 lakh equity shares. The price band for the offer was fixed at ₹209 and ₹220 per share. Half of the issue was reserved for qualified institutional investors, including anchor books, 35% for retail investors, and the remaining 15% for non-institutional investors.

Ahead of the IPO, the engineering company had raised ₹110 crore through its pre-IPO placement of 37.93 lakh shares at a price of ₹290 per share, a 32% premium to the upper end of issue price of ₹220.

Syrma SGS Technology has eleven manufacturing facilities in India (i.e. Uttar Pradesh, Himachal Pradesh, Haryana, Tamil Nadu, and Karnataka). The homegrown engineering company has three R&D facilities, two of which are located in Chennai and Gurgaon and one in Stuttgart, Germany.

Syrma SGS Technology's IPO came after a lull for two and half months amid a slowdown in the IPO activities due to factors such as geopolitical tensions, macroeconomic headwinds, market volatility, and growing concerns about interest rate hikes. The weak performance of companies like Life Insurance Corporation (LIC) of India, Rainbow Children's Medicare, Prudent Corporate, AGS Transact, and Ethos prompted several companies to defer their IPO plans.