Syrma SGS IPO | Review

Spread the love

Syrma SGS Technology Ltd has come up with an initial public offer (IPO). It will open on August 12-18, 2022 at Rs.209-220 a share. The IPO issue size is around Rs.840 crore. The minimum bid will be for 68 shares and in its multiples thereafter.

Overview

Syrma SGS Ltd was founded in 1978 by industry pioneers (Tandon family), and is located in San Jose (California), and Chennai (India), developing quality technology products. It is one of India’s leading exporters of electronics, providing a high-value integrated design and production solution for internationally recognized OEMs. Also, the company is one of the leading ESDM company with a focus on technology-based solutions and ODM business. Unlike the traditional OEM or ODM business model, which only focuses on certain stages of the production process, the company’s business model starts from product concept design and focuses on every segment of the overall industry value chain. Syrma’s business approach leads to continuous advancements in product technology, structure, and functional design to meet customer requirements and lead the industry in development.

The company is recognized as a leader in people development as the company is one of the great places to work. Also, it has a key focus on women empowerment, where more than 80% of the employee base is women workforce. Importantly, the company was the first in India to manufacture RFID products in India and continues to lead the industry. Also, the company is recognized as a leader in memory modules with deep expertise. The company has a long-standing relationship with customers, an opportunity for increased wallet share, and not a single customer more than 5 %.

Product Portfolio

1) PCBA (Printed Circuit Board Assembly)

2) RFID (Radio-Frequency Identification) Tags

3) ZAC (Zone of Autonomous Creation)

4) Magnetics (Mechanical Parts)

5) Others: Motherboards, Dynamic Random Access Memory (DRAM), Solid State Drives (SSDs), USB flash drives, Copper Wiring Coiling, Induction Devices, Chokes, Transformers.

Website – https://syrmasgs.com/

Promoters

Sandeep Tandon – Nil	Tancom Electronics Pvt Ltd – 46.01%
Jasbir Singh Gujral – 9.22%	Veena Kumari Tandon – 3.55%

Promoter Holding

Pre-Issue Shareholding – 58.78%

Post-Issue Shareholding –

Strength & Weakness

Strengths	Weaknesses
Experienced promoters	No long-term contracts
Consistent track record of financial performance	Strict quality requirements
Leading design and electronic manufacturing services company	Depend on third parties for the supply of raw materials
Focus on quality and customer relationships	Highly dependent on our management team
Consistent track record of financial performance	Outstanding legal proceedings against our company
Diversified, continuously evolving, and expanding product portfolio	Geographical concentration of manufacturing facilities
Strong R&D capabilities	A large number of contract labor
Global supplier network	Highly competitive industry

Business Strategies

Cater to more end-use industries

Expand our customer base and geographic reach

Increase our wallet share from existing customers

Pursue inorganic growth through strategic acquisitions

Solidify and strengthen our core competitiveness in technology innovation

Competitors

Bharat FIH Pvt Ltd	Dixon Technologies India Ltd
Amber Enterprises India Ltd	SFO Technologies Pvt Ltd
Elin Electronics Ltd	Kaynes Technology India Pvt Ltd
Avalon Technologies Pvt Ltd	VVDN Technologies Pvt Ltd

Company Financials

Year	Revenue (in Crore)	Profit (in Crore)
31-Mar-2019	357.40	20.97
31-Mar-2020	404.88	43.88
31-Mar-2021	444.48	28.62
31-Mar-2022	654.51	30.61

Object of Issue

1) Funding capital expenditure requirements for the development of an R&D facility and expansion / setting up of manufacturing facilities

2) Funding our long-term working capital requirements

3) General corporate purposes.

Syrma SGS IPO Lot Size

Application	Lot	Shares	Amount
Minimum	1	68	Rs.14,960
Maximum	13	884	Rs.1,94,480

Syrma SGS IPO details

IPO Opening Date	August 12, 2022
IPO Closing Date	August 18, 2022
Face Value	Rs.10 per Equity Share
IPO Price	Rs.202-220 per share
Market Lot	68 shares
Minimum Order Quantity	68 shares
Listing At	NSE, BSE
No. of shares offered (OFS)	33,69,360 shares
Issue Size	Up to Rs.840 Crore
QIB Shares Offered	50% of the offer
Retail Shares Offered	35% of the offer
NII/HNI Shares Offered	15% of the offer

Syrma SGS IPO Timetable

IPO Date	August 12-18, 2022
Allotment Date	August 23, 2022
Initiation of Refunds	August 24, 2022
Credit of share to Demat a/c	August 25, 2022
IPO Listing Date	August 26, 2022