Sirma SGS Tech IPO opened on Friday. GMP, Key Details You Need to Know

Sirma SGS Tech IPO Contains a recent issue of 766 crore and Offer for Sale (OFS) of 3.37 million shares by promoter Veena Kumari Tandon. The company aims to raise 840 crores through its IPO.

As per market observers, Sirma SGS Technology shares are available at Premium (GMP) 15 in the gray market today. The company’s shares are expected to be listed on the stock exchanges BSE and NSE on Friday, August 26, 2022.

“Revenue has been rising steadily while profit margins have come down which appears to be a concern. Thus, it will be curious to see how the company addresses shrinking margins going forward. The previous pre-IPO placement was done here 290, however, the issue still looks from modest to fully priced,” said Abhay Doshi of Unlisted Arena.

The company aims to use the net proceeds from the new share issue to finance capital expenditure requirements, expand manufacturing and R&D facilities, and to fund long-term working capital requirements.

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

It operates through eleven manufacturing facilities in Himachal Pradesh, Haryana, Uttar Pradesh, Tamil Nadu and Karnataka and has three R&D facilities located in Tamil Nadu, Haryana and Germany.

DAM Capital Advisors, ICICI Securities and IIFL Securities are the book-running lead managers to the offer, while LINK Intime India is the registrar of the issue.

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