With its Initial Public Offering (IPO) opening today, the Electronic manufacturing services (EMS) firm Syrma SGS Technology has already raised Rs 252 crore from anchor investors. As per a circular on the BSE site, the company will sell 114,56,261 of its equity shares, at the rate of Rs 220. Some of the investors include Aditya Birla Sun Life Insurance Company, Edelweiss MF, IDFC MF, Kuber India Fund and Tata MF.
The IPO will be open for public subscription till Thursday. There will be a fresh issue of shares worth Rs 766 crore, with a price band of Rs 209-220. At the upper end of the price band, the initial sale of shares will garner around Rs 840 crore. There will also be an Offer For Sale (OFS) of up to 33.69 lakh equity shares. Around half of the issue size is reserved for qualified institutional buyers. And, retail and non-institutional investors are allocated 35% and 10% of the issue size, respectively. The net proceeds from the fresh issue will meet various needs. These include expanding manufacturing and R&D facilities.
This year, 11 companies have tried to tap the primary market so far. They have piled up around Rs 33,254 crore. Out of these, the biggest beneficiary has been LIC. After the IPO of Aether Industries in May, this is the first company to open for public subscription.
Syrma SGS is a technology-focused engineering and design company engaged in turnkey EMS that specialises in precision manufacturing. AO Smith India Water Products, Eureka Forbes Robert Bosch Engineering and Business Solution, Total Power Europe BV and TVS Motor Company, are its customers. Last year, Syrma acquired Gurugram-based SGS Tekniks and Perfect ID.
