Syrma SGS Technology shares made a strong market debut on Friday rising as much as 39 per cent over the IPO price to hit an intraday high of Rs 306.40. The stock opened for trading at Rs 262 on the BSE, marking an upside of 17 per cent from its issue price of Rs 220 per share. On the National Stock Exchange, Syrma SGS Technology shares opened for trading at Rs 260 per share.
Syrma SGS Technology shares were in very high demand during the three-day share sale via Initial Public Offer (IPO) which ended on August 18. Syrma SGS Technology IPO was subscribed 32.61 times on the final day on Thursday last week. Syrma SGS Technology raised Rs 840 crore from the IPO by selling shares in the price band of Rs 209-220 per share. Retail investors were allowed to buy minimum one lot of 68 shares up to maximum of 13 lots. One lot of Syrma SGS Technology shares in IPO was priced at Rs 14,960.
Syrma SGS Technology IPO came after a long pause of four months and was the first IPO after Veranda Learning Solutions IPO came in April. Its shares were in very high demand among qualified institutional buyers (QIBs) which include foreign institutional investors, mutual funds and banks as portion reserved for them was subscribed 42 times, portion reserved for Non Institutional Investors was subscribed 7.13 times and portion for retail investors was subscribed 2.84 times, data from the National Stock Exchange showed.
"The company’s good listing can be attributed to positive market sentiments, outstanding prospects, and a good response from the investors. With a huge focus on R&D-based innovation and an experienced management team, the company has managed to enter into various growing segments like PCBA, Radio Frequency Identification (RFID), Electromagnetic and electromechanical parts, and other information technology-related products," Santosh Meena, head of research at Swastika Investmart.
Syrma SGS is a technology-focused engineering and design company engaged in turnkey Electronics Manufacturing Services (EMS). Its customers include TVS Motor Company, AO Smith India Water Products, Robert Bosch Engineering and Business Solution, Eureka Forbes and Total Power Europe BV.
