Sirma SGS technology IPO: The initial public offering (IPO) of Chennai-based engineering and design company Sirma SGS Tech will hit the primary markets on Friday, August 12. As per Red Herring Prospectus (RHP) of Sirma SGS technology The IPO, Public Issue will be open for bidding till August 18, 2022. The anchor book will be opened for one day on 11th August.
Sirma is one of the leading Electronics System Design and Manufacturing (“ESDM”) company, focusing on technology-based solutions and Original Design Manufacturer (“ODM”) business. The company’s business model begins with product concept design and focuses on each segment of the overall industry value chain.
Through its pre-IPO placement, Sirma SGS Technology has already raised Rs 110 crore for 37.93 lakh shares ahead of the filing of the red herring prospectus. The said fundraising was at a price of Rs 290 per share, which was a 32 per cent premium over the issue price of Rs 220.
price off
Syrma SGS Tech has fixed a price band of Rs 209 and Rs 220 per share for the offer. The initial public offering comprises fresh issue of Rs 766 crore and offer for sale of 33.69 lakh equity shares.
lot size
Investors can bid for lot size of 68 shares and thereafter in multiples of 68 equity shares. Those planning to invest in the issue will have a minimum investment of Rs 14,960 per lot at the upper end of the price band and a maximum of Rs 1,94,480 against 13 lots as they are allowed to invest up to Rs. 2 lakhs.
company financial
Sirma for the year ended March 2022 on strong top line and operating performance reported 16.6 per cent YoY growth in proforma profit at Rs 76.46 crore. “Proforma revenue from operations grew 43 per cent to Rs 1,266.6 crore and EBITDA by 23 per cent to Rs 143.70 crore as compared to the year ended March 2021,” Axis Securities said.
key strengths
Sirma is one of the leading Design and Electronic Manufacturing Services companies in terms of revenue in FY 2021, with a focus on quality and customer relationships. It has also demonstrated consistent growth in terms of revenue and profitability.
“Their financial position reflects not only the growth of their operations over the years, but also the effectiveness of the administrative and cost management protocols they have implemented,” Axis Securities said.
The company is diversified and continuously evolving and expanding its product portfolio and service offerings, catering to customers in diverse industries, backed by strong R&D capabilities, the note added.
“Sirma has established and will continue to focus on strengthening long-standing relationships with renowned customers in the end-use industries that they cater to. The company is led by a management team having vast experience in the EMS sector with a proven track record of performance,” the note said.
gmp today
The shares of Sirma are also available in the gray market. According to market experts, the shares of Sirma SGS Technology are available at a premium of Rs 30 in the gray market today. SGS Technology IPO Gray Market Premium (GMP) is Rs 30 today, which is Rs 3 more than GMP Rs 27 yesterday morning. Though, today is stock market holiday, Sirma SGS Technology IPO GMP is expected to remain at Rs.30 till Indian market. The stock market reopened on Wednesday, experts said.
IPO share allotment and listing date
The company will finalize the basis for allotment of shares by August 23 and initiate refunds to unsuccessful investors by August 24. The equity shares will be credited to the demat accounts of eligible investors by August 25.
And finally, trading in equity shares on BSE and NSE will start from August 26.
about the company
Axis Securities in its IPO note said: “The company’s manufacturing facilities in Tamil Nadu are placed in SEZs, allowing them to avail specific tax and other incentives in respect of products manufactured at these facilities. All manufacturing facilities are certified including ISO 14001 and ISO 9001.
Sirma is the first India continues to lead the industry in manufacturing radio frequency identification (“RFID”) products. At the same time, the company is recognized as a leader in memory modules with deep expertise.
DAM Capital Advisors, ICICI Securities and IIFL Securities is the book-running lead manager for the offer, while LINK Intime India is the registrar of the offer.
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