Electronic manufacturing services firm Syrma SGS Technology on Monday said it will come out with its ₹840-crore initial share sale on August 12, which will end two-and-a-half months of the gap in the initial public offering (IPO) market.
The company has fixed a price band of ₹209-220 per equity share for its IPO, according to a statement.
This would be the first company to tap the primary market in two-and-a-half months. Prior to that, the IPO of Aether Industries was opened for public subscription during May 24-26.
Companies were not taking the IPO route for fundraising due to the volatility in the markets. In fact, many firms that received Sebi's go-ahead are waiting for the right time to float their issues as current market conditions are challenging.
So far in the current fiscal, 11 debutants have gone public to garner ₹33,254 crore. Of these, a lion's share (₹20,557 crore) was raised by a public issue of Life Insurance Corporation of India (LIC).
The public issue of Syrma SGS Technology comprises a fresh issue of shares worth ₹766 crore, and an offer for sale (OFS) of up to 33.69 lakh equity shares by Veena Kumari Tandon.
At the upper end of the price band, the company is expected to raise ₹840 crore. The public issue will close on August 18.
The net proceeds from the fresh issue will be utilised for funding capital expenditure requirements to expand manufacturing, R&D facilities, long-term working capital requirements and general corporate purposes.
Half of the issue size has been reserved for qualified institutional buyers, 35 per cent for retail investors and the remaining 10 per cent for non-institutional investors.
Syrma SGS is a technology-focused engineering and design company engaged in turnkey electronics manufacturing services (EMS) that specialises in precision manufacturing. Its customers include TVS Motor Company, AO Smith India Water Products, Robert Bosch Engineering and Business Solution, Eureka Forbes and Total Power Europe BV.
The company currently operates through 11 strategically located manufacturing facilities in north India—Himachal Pradesh, Haryana and Uttar Pradesh —and south India—Tamil Nadu and Karnataka—and three R&D facilities, two of which are located in Chennai, Tamil Nadu and Gurgaon, Haryana, and one is located in Stuttgart, Germany.
In September 2021, Syrma acquired Gurugram-based SGS Tekniks in a cash and stock deal. Additionally, it acquired Perfect ID in October 2021.
Dam Capital Advisors, ICICI Securities and IIFL Securities are the book-running lead managers to the issue.