Syrma SGS IPO | Review

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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 – NilTancom 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

StrengthsWeaknesses
Experienced promotersNo long-term contracts
Consistent track record of financial performanceStrict quality requirements
Leading design and electronic manufacturing services companyDepend on third parties for the supply of raw materials 
Focus on quality and customer relationshipsHighly dependent on our management team
Consistent track record of financial performanceOutstanding legal proceedings against our company
Diversified, continuously evolving, and expanding product portfolioGeographical concentration of manufacturing facilities
Strong R&D capabilitiesA large number of contract labor
Global supplier networkHighly 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 LtdDixon Technologies India Ltd
Amber Enterprises India LtdSFO Technologies Pvt Ltd
Elin Electronics LtdKaynes Technology India Pvt Ltd
Avalon Technologies Pvt LtdVVDN Technologies Pvt Ltd

Company Financials

YearRevenue (in Crore)Profit (in Crore)
31-Mar-2019357.4020.97
31-Mar-2020404.8843.88
31-Mar-2021444.4828.62
31-Mar-2022654.5130.61

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

ApplicationLotSharesAmount
Minimum168Rs.14,960
Maximum13884Rs.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 DateAugust 12-18, 2022
Allotment DateAugust 23, 2022
Initiation of RefundsAugust 24, 2022
Credit of share to Demat a/cAugust 25, 2022
IPO Listing DateAugust 26, 2022

Book Lead Managers

 Registrar

Allotment Status

Link Intime – https://linkintime.co.in/mipo/ipoallotment.html

About the author

Shankar Awale

Hey! I am Shankar Awale an aspiring blogger with an obsession for all things of Finance. This blog is dedicated to help people to learn about Financial Knowledge in easy language.

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