IPO of Syrma SGS Technologies: GMP surges. Should I subscribe?

The Syrma SGS Technologies IPO (IPO) opened for subscription on August 12, 2022 and will remain open for auction until August 18, 2022. After two days of bidding, the public issuance was subscribed 0.92 times while its retail share was subscribed 1.56 times. Meanwhile, the premium for Syrma SGS Technologies shares surged in the gray market. According to market watchers, Syrma SGS Technologies shares are available at a premium of 40 per share.

Syrma SGS Technologies IPO GMP

According to leading market watchers, Syrma SGS Technologies IPO premium on the gray market (GMP) is today 40, which is 15 more than its Tuesday night gray market premium of 25. Market watchers said the rise in the gray market premium for Syrma SGS Technologies shares can be attributed to positive sentiments in secondary markets. They said the rise in GMP is likely to continue as there are still two days left for the auction and market sentiments are very bullish after Dalal Street ended on a high note in the sixth straight session on Tuesday.

What do these GMPs mean?

Market watchers said Syrma SGS Technologies GMP IPO today is 40, meaning the gray market is waiting for Syrma SGS Technologies IPO around 260 ( 220+ 40), approximately 18% higher than Syrma SGS Technologies’ IPO price range of 209 to 220 per share. They said the gray market currently expects an 18% stock gain from the IPO.

However, stock market experts have said that the gray market premium is not an ideal indicator of the success or failure of a public offering. They advised investors to look at the company’s balance sheet as it would give a concrete picture of the company’s finances.

IPO of Syrma SGS Technologies: Application or not

Speaking at the Syrma SGS Technologies IPO, Abhay Doshi, Founder of UnlisteArena.com, said, “Syrma is a leading Electronic Systems Design and Manufacturing (“ESDM”) company. export oriented. The company has a diverse customer base and a product portfolio that evolves with changing needs and technological developments. The company also undertakes manufacturing of modules for 5G technology infrastructure as well as EV battery management system controllers, among other products. Revenues have steadily increased while profit margins have shrunk, which seems to be a concern. Thus, he would be keen to see how the company approaches the reduction in margins in the future. The last pre-IPO placement was made at 290, but the issue still seems mid-priced to full.”

Tagging the public issue as a ‘subscription’, Santosh Meena, Head of Research at Swastika Investmart, said: ‘Syrma SGS Technology Ltd is one of India’s fastest growing electronic systems design and manufacturing (ESDM) companies. important and fastest growing. With a huge focus on innovation-based R&D and an experienced management team, the company has successfully penetrated various growing segments such as PCBA, Radio Frequency Identification (RFID), Electromagnetic and Electromechanical parts and other information technology products, including motherboards, DRAM modules, SSDs and USB flash drives. The company’s business model starts from product design and focuses on each segment of the industry’s overall value chain; this gives them a competitive edge over traditional OEM or ODM companies that focus on a single process or certain stages of production, creating long-lasting relationships with its big-name customers. Additionally, the geographically diverse manufacturing locations allow them to effectively cater to the requirements of their customers in North and South India. Moreover, the company has managed to use inorganic means to add new product lines and expand its geographic reach. The issue was priced at a higher valuation, which is acceptable given its growth potential and competitive advantages. And therefore, we recommend that investors subscribe to the issue.”

Disclaimer: The opinions and recommendations made above are those of individual analysts or brokerage firms, and not of Mint.

Catch all the trade news, market news, breaking news and latest updates on Live Mint. Download the Mint News app to get daily market updates.

More less

To subscribe to Mint Bulletins

* Enter a valid email

* Thank you for subscribing to our newsletter.

Leave a Comment

Your email address will not be published.