Weak demand: Syrma SGS Technology IPO subscribed 2.27 times
The qualified institutional buyer portion was subscribed 71 per cent. Retail and the two categories meant for high networth individuals garnered over three times subscription
 "Weak demand: Syrma SGS Technology IPO subscribed 2.27 times")
premium
Syrma SGS Technology maiden share sale garnered a lukewarm response with initial public offering (IPO) garnering less than two times subscription.
The qualified institutional buyer portion was subscribed 71 per cent. Retail and the two categories meant for high networth individuals garnered over three times subscription.
The tepid response to the IPO signals that the sentiment continues to remain weak towards primary share sales, said market experts.
Syrma SGS’ IPO was the first issue to hit the market in nearly three months. Syrma SGS, an electronic systems design and manufacturing firm, had set the price band for its IPO at Rs 209-220 per share.
At the top-end, the company will be valued at Rs 3,877 crore. Through the IPO, the company is planning to raise Rs 766 crore by issuing fresh shares. The issue also comprises Rs 74 crore worth of secondary share sale.
“The company has demanded an enterprise value-to-sales multiple of 2.5 times (to its FY22 pro forma consolidated sales), which is at premium to the peer average. Thus the issue seems to be fully priced,” Choice Broking had said in its IPO note.
Syrma SGS manufactures high-precision coils used for hard disk drives and USB drives. It also provides products for the telecom, healthcare and appliances industry. Dam Capital Advisors, ICICI Securities, and IIFL Securities are the investment banks handling the share sale.
One subscription. Two world-class reads.
Already subscribed? Log in
Subscribe to read the full story →*Subscribe to Business Standard digital and get complimentary access to The New York Times
Smart Quarterly
₹900
3 Months
₹300/Month
SAVE 25%
Smart Essential
₹2,700
1 Year
₹225/Month
Subscribe
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
SAVE 25%