The issue kicked off on Friday, August 12, and will remain open until Thursday, August 18. The company will be selling its shares in the range of Rs 209-220 apiece to raise Rs 840 crore through the primary route.
According to the data from BSE, the investors made bids for 3,11,12,584 equity shares or 1.09 times compared to the 2,85,63,816 equity shares offered for the subscription by 10.35 am Wednesday, August 17.
The quota for retail bidders was subscribed 1.79 times, whereas the allocation for non institutional investors (NIIs) fetched 1.05 times bidding. However, the quota for institutional investors was not even off the mark.
The issue was subscribed 92 percent on the second day, thanks to strong response from the retail bidders.
The company has reserved 50 percent of the net offer for qualified institutional buyers (QIBs), whereas non institutional buyers (NIIs) will get 15 percent allocation. Remaining 35 percent shares will be given to the retail bidders.
The net proceeds from the fresh share issue will be used for funding capital expenditure requirements to expand manufacturing and R&D facilities and to fund long-term working capital requirements.
Brokerage firms have mixed opinions on the counter. However, the majority of them have suggested subscribing to the issue with some words of caution over the fully priced valuations in the growing sector.
Arafat Saiyed, Senior Research Analyst,
Securities said that the IPO is at a discount to pre IPO placement and it is one of the fastest growing Indian ESDM companies with a track record of technical innovation and marquee customers.
“Syrma is well placed to capitalize on domestic and global opportunities. Owing to superior technology based manufacturing domain, healthy product mix, diversified product portfolio, strong R&D capabilities, and capacity addition,” he added with a subscribe rating.
The electronic manufacturing services firm raised Rs 252 crore from anchor investors as it allocated a total of 114,56,261 equity shares to anchor investors at Rs 220 apiece, aggregating to Rs 252.04 crore, according to a BSE circular.
Nomura, Kuber India Fund,
Arbitrage, Aditya Birla Sun Life Insurance Company, Mutual Fund (MF), Tata MF, MF and MF are among the anchor investors.
DAM Capital Advisors,
and are the book-running lead managers for the offer, whereas Link Intime India is the registrar to the issue.
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