Initial Public Offering (IPO) of Sirma SGS Technology, priced at Rs. 209-220 per share, is open for public subscription from August 12 and will expire on August 18, 2022. At the upper end of the price band, the initial share-sale is expected to be received. 840 crores.
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. It is the first company to enter the primary market in two and a half months.
BSE data shows that till 3:20 pm on the second day of bidding, the issue has been subscribed 0.83 times, with retail investors booked 1.45 times and NII 0.59 times.
As per market observers, Sirma SGS Technology shares are available at Premium (GMP) Today in Gray Market 30. The Company’s Shares are expected to be listed on the Stock Exchanges BSE and NSE on Friday, 26th August, 2022.
“Considering its good peer financial performance, strong focus on R&D, capacity expansion plans, positive industry outlook with government support through PLI schemes and a strategy of China plus MNCs, we are looking forward to the medium to long term provide “subscribe” rating for the issue till term basis,” said brokerage Geojit Financial.
The company aims to use the net proceeds from the new share issue to fund capital expenditure requirements, to expand manufacturing and R&D facilities and to fund long-term working capital requirements.
“At the higher price band, the IPO is valued at 24.1% discount from the pre-IPO placement price, which may be considered favorable by retail investors. But the company has reported an EV/sales multiplier of 2.5x (for its FY22 proforma). Consolidated sales), which is at a premium to the peer average. Thus, the issue appears to be fully valued. Considering the high growth potential in the electronic manufacturing sector, we approach this issue with “Caution” Subscribe with” rating. Choice Broking.
Electronic manufacturing services firm Sirma SGS Technology on Thursday said it has raised 252 crore from anchor investors before its initial share-sale.
Sirma SGS is a technology-focused engineering and design company engaged in turnkey electronics manufacturing services (EMS) that specializes in precision manufacturing.
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