Shares of Syrma SGS Technology are exchanging hands at a premium of Rs 55-60 in the gray market over the issue price of Rs 220.
Market participants believe that it will pull off a strong show at debut thanks to its sound fundamentals, growth prospects, robust subscription and recovery in the broader markets.
Abhay Doshi, co-founder, UnlistedArena said the issue received a strong response from investors, an exception for the IPOs lately, and one should expect a decent listing pop from the company.
“Company’s fundamentals are sound which attracted the investors. Improvement in the secondary market conditions has pushed the premium in the unofficial market higher,” the avid gray market tracker said.
The Rs 840-crore IPO of Syrma SGS Technology was sold in the range of Rs 209-220 per share a piece and received a strong investor response during the bidding process between August 12-18 as it was subscribed 32.61 times.
The quota reserved for qualified institutional buyers (QIBs) was subscribed 87.56 times while the portions reserved for non-institutional investors (NIIs) and retailers were subscribed 17.5 times and 5.53 times, respectively.
Punit Patni, Equity Research Analyst,
, said the business has had success using inorganic means to add new product lines and expand its geographic reach. The issue has been priced at a premium valuation, which is acceptable given its growth potential and competitive advantages, he added.
Chennai-based Syrma SGS Technology is among India’s leading and fastest-growing electronics system design and manufacturing companies. It has three dedicated R&D facilities located in Chennai, Gurgaon and Stuttgart, Germany.
The company operates through eleven manufacturing facilities in Himachal Pradesh, Haryana, and Uttar Pradesh, Tamil Nadu and Karnataka.
Ravi Singhal, CEO, GCL Securities, expects the stock list around Rs 320 on Friday. “Long-term investors must keep themselves invested while short-term traders can book entire profit,” he suggested.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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