Syrma SGS Technology LTD IPO

Syrma SGS Technology LTD IPO

Company Profile 


Syrma SGS Technology is most engaged in the multi-utility electronic manufacturing services (EMS) that specialise in detailed manufacturing of electronic products with its basic integration till the final product accomplishment. 

By leading in the Original Equipment Manufacturing (OEM) domain, the company is one of the thriving EMSs head quartered in India through eleven manufacturing facilities in Himachal Pradesh, Haryana, Uttar Pradesh, Tamil Nadu and Karnataka and has three R&D facilities which are located in Tamil Nadu, Haryana, and Germany. It also has a large customer base that includes TVS Motor Company, AO Smith India Water Products, Robert Bosch Engineering and Business Solution, Eureka Forbes and Total Power Europe BV.

Business Information


Syrma SGS Technology’s last initial share sale to hit the Indian markets was chemicals firm Aether Industries Ltd, which closed on May 26. Since then, several companies withdrew their plans to approach the IPO market because of market volatility caused due to ongoing international havoc and several other headwinds. Syrma SGS Technology IPO will be the first IPO to hit the primary market after a dry spell of almost two months in the stock market. The market observers and experts are keenly watching the outcome of this share sale as it could be an indicator to others waiting in the queue.

Facts about the Company

  • The company is based in Chennai, Incorporated in 2004
  • The company posted a 43% revenue growth at ₹1,267 crores in FY22 compared to the year ending March 2021. The company's net profit grew 17% to ₹76.46 crores for March 2022
  • Syrma has a Price earning (PE) of 50.69
  • For the last three financial years, it has posted an average EPS of 5.18 and an average RoNW of 14.85%
  • The manufacturing facility of SGS has been set up in Haryana under the Electronic Hardware Technology Park scheme, which allows the company to avail of tax and other benefits
  • Syrma SGS Technology has been running in profits for the past 3 years. The debt levels are also decreasing eventually

Points to note before investing in Syrma SGS Technology Ltd IPO

  • It operates in multiple segments including industrial appliances, automotive, healthcare, consumer products, and IT industries.
  • The Company has channel partners within India and globally.
  • Syrma is the first in India to manufacture Radio Frequency Identification (RFID) products which have become successful in the country dramatically
  • Along with the leading original equipment manufacturers, the company has shown consistent growth in terms of revenue and profitability. 
  • It has a couple of listed peers -Dixon Technologies Limited and Amber Enterprises India Limited. 
  • SGS technology is a comparatively smaller company than its competitor, in terms of market capitalization, however, boasts of its better profitability
  • The company has a diverse customer base and product portfolio

Objective of the IPO


The following are the objectives of the Syrma SGS Technology LTD IPO-

  1. The net proceeds from the fresh share issue of the company will be utilised for funding capital expenditure requirements to expand manufacturing and R&D facilities across the globe
  2. According to the red herring prospectus, Rs 131 crore funds will be the long-term working capital requirements
  3. General corporate motives


Benefits from the IPO


The company’s qualified institutional buyers (QIB) have reserved up to 50% shares of its net offering. Retail investors can hold up to 35% of the offer, and the rest 15% of the shares are available for the NII for high net worth individuals (HNI). 


Syrma SGS Technology Limited IPO Details


Opening Date
Aug 12, 2022
Closing Date
Aug 18, 2022
Issue Type
Book Built Issue IPO
Face Value
₹10 Per Equity Share
Issue Price
₹209-220 Per Equity Share
Lot Size
IPO Price
₹840.00 Cr.
Listing At

Allotment, Listing & Refund Details

Finalization of Basis of Allotment
Aug 23, 2022
Initiation of Refunds
Aug 24, 2022
Credit of Equity Shares
Aug 25, 2022
Listing Date
Aug 26, 2022
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