IPO: Fear over IPO Street eases, Syrma SGS issue’s the 1st offer after 80 days


Mumbai: The ₹840 crore-initial public offering of engineering and design company Syrma SGS Technology will open for subscription on August 12. This will be the first company to hit the primary market in 80 days as the uncertainty in the market has resulted in fresh offerings drying up.

The offer comprises a fresh issue of ₹766 crore and an offer for sale of ₹75 crore by the existing investors. The anchor book will open on August 11.

The company did not respond to ET’s query until press time.

Aether Industries’ IPO, which closed on May 26, was the last issue of 2022. Between January and May this year, 16 companies including LIC raised ₹40,310 crore compared to ₹1.19 lakh crore raised by 63 companies in 2021.

Weak sentiment in the secondary markets and the weak demand for over a half dozen public issues launched in May after the mega IPO from state-owned

have impacted the primary market mood.

Bankers said the 10% rebound in the Sensex and Nifty have improved sentiment and is encouraging some companies to consider launching their pending IPOs.

The net proceeds from the fresh share issue of Syrma will be utilised for funding capital expenditure requirements to expand manufacturing and R&D facilities and to fund long-term working capital requirements, according to the red herring prospectus.

The company posted a 43% revenue growth at ₹1,267 crore in FY22 compared to the year ending March 2021. The company’s net profit grew 17% to ₹76.46 crore for March 2022.

Promoters held a 61.47% stake in the company, according to the red herring prospectus. South Asia Growth Fund II and Malabar Select Fund, respectively, owned 7.53% and 1.22% stakes in the company.



Read original article here

Denial of responsibility! My droll is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials, please contact us by email – [email protected]. The content will be deleted within 24 hours.

Leave a comment