Syrma SGS Technology Ltd | Globe Capital
Syrma SGS Technology Ltd
Closed
Price Band
Rs. 209-220
IPO Issue Period
Aug 12, 2022 to Aug 18, 2022
Issue Size
Rs. 840Cr.
Face value
Rs. 10 /-
Fresh issue
Rs. 766Cr.
Offer for sale
3,369,360 shares of ₹10
Minimum Shares for Retail
68 shares
Listing on
NSE, BSE
Issue Type
Book Building
Registrar to the Issue
Link Intime India Private Ltd
Tentative Listing Date
Aug 26, 2022
QIB
Not More than 50% of the offer
NII
Not less than 15% of the offer
Retail
Not less than 35% of the offer

DAM Capital Advisors Ltd (Formerly IDFC Securities Ltd) (Past IPO Performance)
ICICI Securities Limited (Past IPO Performance)
IIFL Securities Ltd (Past IPO Performance)

Syrma SGS Technology Limited (“Syrma”) was incorporated on August 23, 2004. The Company is one of India’s leading exporters of electronics, providing a high-value integrated design and production solution for internationally recognized OEMs.  It is one of the leading Electronics system design and manufacturing (“ESDM”) company with a focus on technology-based solutions and Original design manufacturer (“ODM”) business. Company’s business model starts from product concept design and focuses on every segment of the overall industry value chain. Its manufacturing facilities in Tamil Nadu are placed in SEZs, allowing them to take advantage of specific tax and other incentives in relation to the products manufactured at these facilities. Product Portfolio: Printed circuit board assemblies (PCBA), Radio frequency identification (RFID) products, Electromagnetic and electromechanical parts, Motherboards & Memory products – DRAM modules, solid state, and USB drives

For year/ period ended ( in Cr.)

H1FY22 FY21 FY20
Total Revenue 646.26 438.30 397.08
Profit After Tax 30.61 28.62 43.88
EPS 2.67 3.32 6.19
OPM (%) 10.02% 12.08% 17.60%
PATM (%) 4.74% 6.53% 11.05%
  • It is one of the leading design and electronic manufacturing services companies in terms of revenue in Fiscal 2021, driven by the focus on quality and customer relationships.
  • Consistent track record of financial performance.
  • Diversified and continuously evolving and expanding product portfolio and service offerings catering to customers across various industries, backed by strong R&D capabilities.
  • Established relationships with marquee customers across various countries.
  1. Funding capital expenditure requirements for the development of an R&D facility and expansion / setting up of manufacturing facilities.
  2. Funding long-term working capital requirements.

Based on its financial performance, the issue is priced at a P/E of 50 plus. The company is focusing on a high-margin product portfolio. The segment in which it is operating is also poised for bright prospects ahead. Hence investors may consider an investment with medium to long-term perspectives.

The financial performance of the Issuer is reasonable though it needs to be tracked for the upcoming quarters as well since the revenues have reduced in FY21. Hence Investors may subscribe to the Issue. The company has no listed peers.

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