Syrma SGS IPO Date, Review, Price, Allotment & Analysis

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After two months of drought, the IPO of Chennai-based engineering and design firm Syrma SGS Tech is expected to hit the public market on Friday 12th August. The public offering is open for bidding until August 18, 2022. Let’s have a look at Syrma SGS IPO review.

The company has already raised Rs 11 crores in 37.93 million shares before filing a prospectus for Red Herring through pre-IPO placement. The funding was offered at a price of INR 290 per share representing a 32% premium to the issue price of INR 220.

 Syrma SGS Tech has fixed a price range of Rs 209 and Rs 220 per share. The issue includes a fresh sale of Rs 766 crore and an offer to sell 336,900 shares by existing shareholders. Investors can bid a lot size of 68 shares and he can bid in multiples thereof.

About the Syrma SGS Limited

Founded in 2004, Syrma SGS is a technology-oriented engineering and design company based in Chennai that provides turnkey electronic manufacturing (EMS) services and specializes in precision manufacturing. The company provides integrated services and solutions for original equipment manufacturers (OEMs), from the early stages of product design through mass production, joint concept generation, and product realization. They specialize in precision manufacturing for a variety of end-use industries including industrial equipment, automotive, healthcare, consumer products, and IT industries.

Their major clients include TVS Motor Company, AO Smith India Water Products, Robert Bosch Engineering, and Business Solution, Eureka Forbes, and Total Power Europe BV.

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Manufacturing

The company currently operates 11 manufacturing sites and 3 R&D facilities strategically located in Himachal Pradesh, Haryana, and Uttar Pradesh in northern India, and Tamil Nadu and Karnataka in southern India. The production facilities in Tamil Nadu are located in special economic zones and that in Haryana was established under the Electronic Hardware Technology Park program. This allows the company to enjoy tax and other benefits. Of the 3 R&D facilities, two are in Chennai and Gurgaon and one in Stuttgart, Germany.

Syrma SGS IPO: Product Portfolio

  • Assembled Printed Circuit Boards (PCBA)
  • RFID (Radio Frequency Identification) products.
  • Electromagnetic and electromechanical parts
  • Motherboard and memory Products – DRAM Modules, Solid State, and USB Drives.

Objects of the Syrma SGS IPO issue

The respective portion of the proceeds from the Offer for Sale (which is, proceeds from the offer for sale of 3,369,360 Equity Shares) shall be received by Veena Kumari Tandon (Selling Shareholder).

The Company proposes to use the net proceeds from the fresh issue to finance the following items:

  • Funding the investment needs associated with the development of  R&D facilities and expansion or new manufacturing facilities
  • Financing long-term working capital needs.
  • General corporate purpose.

Also Read List of Upcoming SME IPOs in India.

Basis of the Syrma SGS IPO Offer

• Consistent course record of financial performance.

• Diversification, continuous evolution, and expansion of product portfolio and service offerings to customers across multiple industries, supported by strong R&D capabilities.

• Established relationships with reputable clients from various countries.

• State-of-the-art manufacturing capabilities and support of a global supplier network.

• Experienced promoters supported by a proven senior management team

Syrma SGS IPO Details

Syrma SGS Technology Ltd has filed for an IPO with SEBI which comprises a fresh issue of 926 lakh shares. The Chennai-based engineering and design firm Syrma SGS Tech IPO is expected to hit the public market on Friday 12th August. The public offering is open for bidding until August 18, 2022.  Syrma SGS Technology IPO price has been fixed in a range of Rs 209 and Rs 220 per share. The issue includes a fresh sale of Rs 766 crores and an offer to sell 336,900 shares by existing shareholders. Investors can bid lot size of 68 shares, and thereafter they can bid in multiples thereof.

Check the tables of Syrma SGS technology IPO details below for more knowledge.

Syrma SGS IPO DateAug 12, 2022, to Aug 18, 2022
Syrma IPO Face Value₹10 per share
Syrma SGS Technology Share Price₹209 to ₹220 per share
Syrma IPO Lot Size68 Shares
Issue Size[.] shares of ₹10
(aggregating up to ₹840.00 Cr)
Fresh Issue[.] shares of ₹10
(aggregating up to ₹766.00 Cr)
Offer for Sale3,369,360 shares of ₹10
(aggregating up to ₹ [.] Cr)
Issue TypeBook Built Issue IPO
Listing AtBSE, NSE
Company PromotersThe promoters of the company are Sandeep Tandon, Jasbir Singh Gujral, Veena Kumari Tandon, and Tancom Electronics Private Limited. Promoters collectively hold 58.78% of the Equity Share as of Dec 31st, 2021.

The Syrma IPO lot size is 68 shares. A retail-individual investor can apply for up to 13 lots (884 shares or ₹194,480).

ApplicationLotsSharesAmount
Minimum168₹14,960
Maximum13884₹194,480

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Syrma SGS IPO Tentative Timetable

Syrma’s IPO will start on August 12, 2022, and close on August 18, 2022. The bidding will start at 10:00 AM on 12 August and close at 5:00 PM on 18 August. The deadline for confirmation of the UPI delegation is 12:00 PM.

EventDate
IPO Opening DateAug 12, 2022
IPO Closing DateAug 18, 2022
 IPO Allotment DateAug 23, 2022
Initiation of RefundsAug 24, 2022
The credit of Shares to DematAug 25, 2022
IPO Listing DateAug 26, 2022

Syrma SGS IPO Strengths and Opportunities

  • Leading design and electronic manufacturing services companies in terms of revenue in Fiscal 2021
  • Low Company Debt
  • Aims to strengthen its core competitiveness of technology innovations
  • Pursue inorganic growth through strategic acquisitions
  • Aims to expand its customer base and geographic reach
  • Increase wallet share from existing customers

Risk Factors

  • No long-term commitments with customers
  • Declining Net Cash Flow
  • Low Piotroski score: Companies with weak financials

Financial Trends Of Syrma SGS IPO

Syrma reported a 16.6% increase in pro forma profit for the year ended March 2022, surpassing the previous year’s Rs 7.646 crores on strong sales and operational performance.

  • The company reports revenue of Rs 39.708 crore, Rs 43.830 crore, and Rs 64.626 crore for FY20, 21, and 22 respectively. The Company’s Revenue increased at a CAGR of 27.56%. This is an excellent number.
  • In FY20, FY21, and FY22, Rs.332.09 crore, Rs.306.97 crore, and Rs.353.94 crore accounted for 83.63%, 70.04%, and 54.77% of export operating profit respectively.
  • The company reported -EBITDA of Rs.69.90 crore, Rs.52.93 crore, and Rs.64.77 crore for FY20, FY21, and FY22 respectively, with EBITDA margins of 17.60%, 12.08%, and 10.02% respectively for the same period.
  • Profits have declined over the past two years. Profits have decreased from his Rs 4.388 crore in 2020 to Rs. 3.061 crores in 2022. The Net profit reported in FY21 was the lowest at Rs 2.862 billion. Earnings decreased as margins declined.
  • The profit margins for FY2020, FY21 and FY22 were 11.05%, 6.53%, and 4.74% respectively.
  • The average EPS over the last three fiscal years is 5.18 and the average RoNW is 14.85%.

Summarized Balance Sheet

ParticularsMar’22Mar’21Mar’20
Liabilities12 Months12 Months12 Months
Share Capital141.12.75.70
Reserves & Surplus402.77237.42101.00
Net Worth543.89238.17101.70
Secured Loan132.5956.1283.80
Unsecured Loan.00.00.00
TOTAL LIABILITIES676.48294.29185.51
Assets
Gross Block140.8297.5593.38
(-) Acc. Depreciation26.8216.186.90
Net Block114.0081.3786.48
Capital Work in Progress39.93.00.43
Investments404.4788.74.00
Inventories114.7977.0868.22
Sundry Debtors171.79127.87116.36
Cash and Bank11.2030.2135.17
Loans and Advances58.5454.7440.04
Total Current Assets356.33289.90259.79
Current Liabilities231.36159.68156.09
Provisions6.896.045.10
Total Current Liabilities238.24165.72161.19
NET CURRENT ASSETS118.08124.1898.60
Misc. Expenses.00.00.00
TOTAL ASSETS(A+B+C+D+E)676.48294.29185.51

Rs (in Crores)

Comparison with Peers

The company has two major listed competitors – Dixon Technologies Limited and Amber Enterprises India Limited.

Here’s how Syrma compares to the above-mentioned companies:

  • Syrma’s total revenue is one-ninth that of Dixon Technologies and one-third that of Amber Enterprises.
  • Syrma has the lowest earnings per share (EPS)  at 5.25, and the other two  EPS are in their thirties.
  •  The industry generally has a high PE ratio. Syrma has a PE of 50.69, Dixon has a PE of 110.76 and Amber has a PE of 75.54.

FAQs

What is the lot size for Syrma SGS Technology IPO?

The lot size for Syrma SGS technology IPO is 68 shares.

Syrma SGS Technology IPO date: When does it open for subscription?

Syrma SGS Technology IPO date is on 12th August 2022. It’s going to open for subscription on 12th August 2022

When is Syrma SGS Technology IPO going to get listed?

Shares of Syrma SGS Technology are proposed to list on BSE and NSE on 26th August 2022.

What will be Syrma SGS Technology IPO issue size?

The company aims to generate ₹840 crores from this public issue including a fresh sale of Rs 766 crores and an offer to sell 336,900 shares by existing shareholders.

Syrma SGS IPO Promoters

  • Sandeep Tandon
  • Jasbir Singh Gujral
  • Veena Kumari Tandon and
  • Tancom Electronics Private Limited.

The promoters collectively hold 58.78% of the Equity Share as of Dec 31st, 2021.

Company’s Contact

Syrma SGS Technology Ltd
Plot B27, Phase II, Zone B,
MEPZ-SEZ, Sanatorium, Tambaram,
Chennai 600 045
Phone: 022 40363000
Email: compliance@syrmasgs.com
Website: https://syrmasgs.com/

Syrma SGS IPO Registrar

Link Intime India Private Ltd

Phone: +91-22-4918 6270

Email: syrma.ipo@linkintime.co.in

Website: https://linkintime.co.in/

Syrma SGS IPO Lead Manager(s)

  1. DAM Capital Advisors Ltd (Formerly IDFC Securities Ltd) (Past IPO Performance)
  2. ICICI Securities Limited (Past IPO Performance)
  3. IIFL Securities Ltd (Past IPO Performance)

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