Syrma SGS Technology IPO

Syrma SGS Technology Limited is a technology-focused engineering and design firm that provides turnkey electronics production services for a variety of end-use industries, such as industrial appliances, automotive, healthcare, consumer goods, and information technology. Syrma SGS Technology IPO will hit the market in 08 August 2022.

About Syrma SGS Technology

As per the F&S Report, they are among the fastest growing Indian-based ESDM firms among the wide bouquet of EMS players in India. Their company has a history of technical innovation, which includes collaborating with their marquee customers’ engineering players.

They’ve evolved to provide integrated providers and solutions to OEMs, from initial product concept to volume manufacturing, via concept co-creation and product realisation.

Their manufacturing infrastructure allows them to handle a diverse range of products with varying production volumes.

They’re the industry leaders in high-mix, low-volume product management, with a presence in nearly every industry vertical.

Products

They are a top PCBA producer in India, providing to a wide range of OEMs and assemblers. Their firm is also one of the world’s leading custom RFID tag makers. Their present product line can be divided into the following categories:

• Printed Circuit Board Assemblies

Their PCBAs are used in a variety of goods, including box-build items, in the automotive, medical, industrial, IT, and consumer product fields.

• Radio frequency identification

Their RFID products are utilized in the transportation, healthcare, industrial, retail, and fintech industries products.

• Electromagnetic and Electromechanical parts

Chokes, inductors, magnetic filters, and transformers are examples of magnetic products, as are high-volume production assemblies: Their electromagnetic and electromechanical components are used in a variety of industries, including automotive, industrial appliances, home appliance, and healthcare.

• Other Products

Motherboards, DRAM modules, solid state drives, USB drives, and other memory products are included in this category.

Business Approach

They use Their multiple abilities, including their global sourcing expertise and long-standing relationships with their vendors, to integrate and lower the cost of raw materials and aspects, as well as to investigate alternative parts, vendors, materials, and processes to lower product costs and speed time to market.

Their concept co-creation effort allows them to build goods for their clients starting with the ideation / concept phase and providing them with rough prototypes for assessment and trials.

Collaboration with their clients’ engineering teams may also be required. They assist clients in transitioning to volume production at their high-speed fully integrated production plants once the design and quality have been authorized.

Syrma SGS Technology IPO

Syrma SGS Technology Limited, headquartered in Mumbai has submitted Draft Red Herring Prospectus(DRHP) to Securities and Exchange Board of India(SEBI) for initial public offering (IPO) of INR 926 crores & 3,369,360 equity shares on 08 December 2021.

The offer includes a fresh issue of INR 926 crore and there is offer for sale (OFS) of 3,369,360 equity shares by the promoters mentioned in the DRHP. They are looking for a pre-IPO placement of 180 crore in this issue.

They are now waiting for approval from Securities and Exchange Board of India(SEBI) to float the initial public offering (IPO) in the market.

Financials Trends

Particulars	For the year/period ended ( in Cr.)
	30-Jun-21	31-Mar-21	31-Mar-20	31-Mar-19
Total Assets	494.53	460.01	346.69	286.42
Total Revenue	135.27	444.48	404.88	357.39
Profit After Tax	5.56	28.61	43.88	20.97

Basic and Diluted Earnings Per Share

Financial Period	Basic EPS (in INR)	Diluted EPS (in INR)	Weight
Financial Year 2021	3.32	3.32	3
Financial Year 2020	6.19	6.19	2
Financial Year 2019	2.96	2.96	1
Weighted Average	4.22	4.22
30 Sep. 2021	0.64	0.64

Objects of the Issue

• Prepayment / repayment of all or a portion of the outstanding borrowings of the company to be availed on consolidated basis.
• To meet common corporate objectives.

Basis of the offer

The following are among the key variables and key strengths that contribute into determining the Offer Price:

• Their dedication on quality and client connections has helped them become one of the top design and electronic production services firms in terms of revenue in Fiscal 2021.
• Financial performance that has been consistent over time.
• Diverse and ever-evolving product and service solutions catering to consumers in a variety of industries, underpinned by strong R&D capabilities.
• Associations with marquee consumers in a variety of countries have been established.
• With a commitment on vertical integration, state-of-the-art production facilities are backed by a global supplier network.
• Experienced promoters are backed up by a senior leadership team with a track record of success.

Peer Comparison

S. No.	Face Value	Company Name	PE
1	2	Dixon Technologies Limited	201.96
2	10	Amber Enterprises India Limited	131.02

Note:

1. The closing price of these equity shares on December 10, 2021 from the BSE portal.
2. All financial data for listed industry peers is consolidated (unless otherwise stated) and derived from the respective firm’s annual results/reports for the fiscal year ended March 31, 2021.

Syrma SGS Technology IPO Details

IPO Opening Date	12 August 2022
IPO Closing Date	18 August 2022
Issue Type	Book Building
Face Value	10 per share
IPO Price	209 to 220 per equity share
Market Lot	68
Min Amount	14,960
Listing At	BSE, NSE
Issue Size	840.13
Fresh Issue	926 Crores
Offer for Sale	3,369,360 equity share

Syrma SGS Technology IPO Date

Syrma SGS Technology IPO opening date is 12 August 2022, and the closing date is 18 August 2022. The Syrma SGS Technology IPO issue may list in 26 August 2022.

IPO Opening Date	12 August 2022
IPO Closing Date	18 August 2022
Basis of Allotment Date	23 August 2022
Initiation of Refunds	24 August 2022
Credit of Shares to Demat Account	25 August 2022
IPO Listing Date	26 August 2022

Basis of Allotment

Type	% of Offer	Basis of Allotment
Qualified Institutional Buyer	50	Roughly  equivalent
Non Institutional Investor	15	Roughly  equivalent
Retail	35	Minimum 1 lot based on availability

Syrma SGS Technology Allotment Status

Allotment of equity stocks subject to the Fresh Issue and transfer of the Promoter Selling Shareholders’ OFS Stocks to the winning Bidders subject to the Offer for Sale. Nevertheless, the status of the allotment has yet to be revealed.

Here, you can find the Allotment Status of Syrma SGS Technology IPO.

Syrma SGS Technology IPO GMP

Syrma SGS Technology IPO Grey Market Premium is 0. You can check out GMP of Other IPOs on below Links:

Date	GMP (in Rs)	Subject to Sauda	Kostak (in Rs)
August 2022
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IPO Grey Market Premium

Syrma SGS Technology IPO Review

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Syrma SGS Technology IPO Risk

• Their clients do not make long-term agreements to them and are free to cancel or change their production needs at any time.
• Due to the obvious stringent quality standards that they must meet, they have to spend a lot of money to keep their product quality up.
• Their business has been damaged by the COVID-19 outbreak and the resulting decline in overall economic conditions.
• Their international operations expose company to a variety of risks that could have a materially negative impact on their financial situation.
• There could be issues with the items they develop, produce, or support that lead to liability claims and decreased demand for their services.
• Their ability to do research and development is vital to their success.

Other Threats

• Noncompliance with, and modifications to, safety, health, climate, and labour laws, as well as other applicable regulations, may have a negative impact on company operations.
• They may face intellectual property infringement accusations from third parties.
• Their competitive advantage could be eroded if they fail to maintain their technical expertise confidential.
• Any defaults or payment delays by a significant fraction of their clients could have a negative impact on their cash flow.
• There are ongoing legal procedures against the Company, its Directors, its Promoters, and its Subsidiaries, and the results of these proceedings could have a detrimental impact on the company.
• In the normal course of business, they need a variety of legislative and regulatory licences and approvals.

Production Plants

They presently have eleven production plants in north and south India, all of which are strategically positioned. Since of their presence in various states, they are able to efficiently meet the needs of their customers in both north and south India.

Their production lines in Tamil Nadu are in a special economic zone, and their manufacturing facility in Haryana is part of the Electronic Hardware Technology Park scheme, which allows them to take advantage of certain tax and other benefits in relation to the products produced at these facilities.

Their manufacturing plants are also ideally positioned in Tamil Nadu, Karnataka, and Haryana, allowing them to meet their export needs.

R&D Capabilities

Their firm’s R&D capabilities are centred on technical innovation. They have three dedicated Research and development facilities, two in India (in Chennai, Tamil Nadu, and Gurgaon, Haryana, correspondingly) and the other in Germany (in Stuttgart).

Their research and development facilities are equipped with cutting-edge research and development infrastructure. As of September 30, 2021, they are additionally backed by a staff dedicated to R&D, which consists of 77 full-time personnel.

While they provide design and engineering solutions as well as original design production solutions to all end-use sectors, they have concentrated their efforts in the last three fiscal years on the healthcare, industrial, and automotive industries.

Syrma SGS Technology IPO Brokerage views

• Yes Securities : Not Updated
• Choice Brokering: Not Updated
• Axis Securities: Not Updated
• IIFL Securities: Not Updated
• Trade swift: Not Updated
• Anand Rathi : Not Updated
• ICICI Securities: Not Updated

Syrma SGS Technology IPO Subscription Status

Date	Day	QIB	NII	Retail	Employees	Total Subscription
12 August 2022	1	0.00	0.14	0.73	N/A	0.39
16 August 2022	2	0.00	0.78	1.63	N/A	0.98
17 August 2022	3	0.79	3.76	2.79	N/A	2.43
18 August 2022	4	98.07	18.34	5.79	N/A	34.85

Promoters

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

Promoters’s Holding

Pre Issue Share Holding	58.78%
Post Issue Share Holding

Syrma SGS Technology IPO Prospectus