Syrma SGS Technology IPO: GMP jumps 28% in a day ahead of listing next week

The grey market premium (GMP) of Syrma SGS Technology initial public offer (IPO) has risen 28 per cent in a day. The GMP, which stood at Rs 35 on August 18 rose to Rs 45 today, according to IPOWatch. That translates into a rise of Rs 10 or 28 per cent in the GMP of the public issue, which closed on August 18. The grey market premium (GMP) of the share sale stands at Rs 45 today, which implies that the stock is expected to list at Rs 265.

The allotment of shares will be done on August 23 and they are likely to be listed on BSE and NSE on August 26. Link Intime India Private Ltd was the registrar to the IPO. Syrma SGS Technology IPO offered its shares in a price band of Rs 209 to Rs 220 per share during the IPO held from August 12 to August 18.

The grey market is the unregulated market where shares are valued after the IPO date and price band announcements. Investors of an IPO always consider the premium of an IPO before investment, which might vary as per the market conditions, demand, and subscription numbers.

ALSO READ: Syrma SGS Technology IPO subscribed 32 times on final day

Syrma SGS Technology plans to raise Rs 840 crore at the upper end of the price band through the share sale. The lot size of Syrma SGS Technology IPO was 68 shares for which one would have to spend Rs 14,960.

IPO Subscription

On the fourth and final day of the offer on August 18, the initial public offer (IPO) of Syrma SGS Technology was subscribed 32.61 times. The public offer received bids for 93,14,84,536 shares against 2,85,63,816 shares offered by the company.

The quota reserved for retail and non-institutional investors got subscribed 5.53 times and 17.50 times of the portion allocated for them. Qualified institutional buyers' (QIBs) portion was subscribed 87.56 times of the allocated portion. Half of the issue size was reserved for qualified institutional buyers, 35 per cent for retail investors and the remaining 10 per cent for non-institutional investors.

ALSO READ: Syrma SGS IPO to open on August 12; sets price band at Rs 209-220 share

About the IPO

The electronics manufacturing services (EMS) firm plans to raise Rs 840 crore at the upper end of the price band through the share sale. The lot size of Syrma SGS Technology IPO was 68 shares for which one would have to spend Rs 14,960. A retail individual investor could submit bids for up to 13 lots or 884 shares by spending Rs 1,94,480. Syrma SGS Technology IPO consisted of a fresh issue of equity shares aggregating to Rs 766 crore and an offer for sale of up to 33,69,360 equity shares.

About Syrma SGS

Syrma SGS is a technology-focused engineering and design company engaged in turnkey electronics manufacturing services (EMS) that specialises in precision manufacturing. Its customers include TVS Motor Company, AO Smith India Water Products, Robert Bosch Engineering and Business Solution, Eureka Forbes and Total Power Europe BV.