Syrma SGS Technology files DRHP to Raise Rs 926 cr

5 August 2022
3 mins read
Syrma SGS Technology files DRHP to Raise Rs 926 cr

Syrma SGS Technology IPO

Syrma SGS Technology, a technology-focused engineering and design firm, has submitted DRHP for an IPO with the capital markets regulator. Promoter Veena Kumari Tandon has offered to sell up to 33,69,360 shares as part of the offer, which is valued Rs 926 crore.

The corporation may pursue a rights issue, private placement, preferential offer, or other means to issue additional shares worth Rs 180 crore. If the pre-IPO placement is successful, the amount of the new issue will be lowered to the same extent as the pre-IPO placement.

Syrma SGS intends to use the net proceeds from the new issue to fund the establishment of a research and development facility, facility expansion and setup, and long-term working capital needs.

More About Syrma SGS Technology

Syrma SGS specialises in complete electronics manufacturing services for end-use industries such as industrial appliances, automotive, healthcare, consumer products, and information technology.

The company’s promoters are Jasbir Singh Gujral, Sandeep Tandon, Tancom Electronics and Veena Kumari Tandon. The promoter and promoter group own 62.89 percent of the firm, while public shareholders such as South Asia Growth Fund II and Modern Die Casting LLP own the remaining 37.11 percent.

The offer’s book-running lead managers are DAM Capital Advisors, ICICI Securities, and IIFL Securities.

Syrma SGS Tech expects to triple sales in three years

Syrma SGS Technology, a leading EMS provider to worldwide OEMs, has set a  goal to more than triple its current revenue of 1,000 crore in the next three years, backed by investments in capacity expansion, a transition to a full value player, and a strong five-year growth outlook in the EMS market.

While Syrma SGS Technology expects to spend roughly Rs 150 crore on expenditure through PLI programmes, the company would also invest in capacity. It plans to add 3 lakh square feet of space in the south and up to 2 lakh square feet in the north.

Putting more emphasis on the home market

Many recent changes have aided Syrma’s transition to a quicker growth trajectory. Until 2017, Syrma SGS Technology’s revenue was primarily derived from export markets.

The introduction of the GST regime, on the other hand, created opportunities in the domestic market.

Optimistic growth forecasts

The future looks bright for Syrma SGS Technology, which has increased its footprint and capabilities. In the next five years, the EMS market is expected to increase at a 30% CAGR.

Syrma SGS Technology has likewise been evolving from a contract manufacturer to a full-fledged EMS player. It now provides design and prototype services, as well as manufacturing, testing, and repair and rework services.

 

Frequently Asked Questions (FAQs)

Q1. What is the Syrma SGS Technology IPO lot size?

The lot size of Syrma SGS Technology IPO is yet to be revealed.

Q2. When is the Syrma SGS Technology IPO scheduled to go public?

The listing date of the Syrma SGS Technology IPO is yet to be disclosed.

Q3. How do I apply for the Syrma SGS Technology Initial Public Offering (IPO)?

You can use UPI to apply online through a stockbroker such as Angel One. Fill out an offline IPO form and deposit it with your broker if you prefer to make paper applications.

 

Disclaimer: This blog is exclusively for educational purposes and does not provide any advice/tips on investment or recommend buying and selling any stock.