InvestorQ : Can you tell me about the forthcoming IPO of Syrma SGS Technology?
Rutuja Nigam made post

Can you tell me about the forthcoming IPO of Syrma SGS Technology?

2 months ago

It has been a virtual drought of IPOs in the months of June and July with not a single IPO hitting the market. However, finally there is an IPO hitting the market after a gap of nearly 75 days and hopefully this should set the trend for more IPOs in the near future. After all, there are more than 50 IPOs where the SEBI approval is already given but the companies are just waiting for the right time to approach the IPO market. On August 12th, Syrma SGS Technology will open its Rs840 crore IPO and the IPO is slated to close on 18th August.

Syrma SGS Technology is an electronic systems design and manufacturing company with a new age digital focus. This is the first IPO to hit the primary market after Aether Industries hit the IPO market on 24th May. There has not been a single IPO after that. Clearly, it looks like the rebound in the secondary markets has again buoyed hopes of investors and merchant bankers that the IPO can sail through in the current market conditions. Such smaller sized IPOs also look to insert their IPOs at a time when the big IPO pressure is low.

Syrma SGS Technology has set the price band for its IPO in the range of Rs209 to Rs220 per share and the final price will be determined based on the process of book building. While the company will raise a sum of Rs766 crore through the issue of fresh shares, an amount of Rs76 crore will be raised through an offer for sale (OFS), wherein the promoters and the early investors will take an exit from the company. It may be noted that fresh issues are equity dilutive and fund infusing while OFS just results in transfer of ownership of shares.