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Syrma SGS stock surges 42% on day 1 of listing despite a volatile market session

Syrma SGS stock surges 42% on day 1 of listing despite a volatile market session
Stock Market1 min read
  • Shares of Syrma SGS Technology listed on the bourses at ₹262 while the issue price was ₹220 per share.
  • Later during the day, shares of the company surged up to 42% despite a choppy session for Sensex and Nifty50.
  • The IPO received strong demand from investors as it was subscribed 32.61 times on the last day of the bidding, led largely by qualified institutional buyers.
  • The market capitalisation of the company stood at ₹5,516 crore.
Shares of Chennai-based Syrma SGS Technology surged 42% on the listing day; after opening at 19% premium in the morning.

It listed at ₹262 and later during the day the stock price surged to ₹313. The shares were allotted at ₹220 per share.

The market capitalisation of the company stands at ₹5,516 crore, according to BSE data. Shares of Syrma SGS Technology surged despite the market witnessing a choppy and volatile session throughout the day and Sensex ending marginally higher.

The IPO was subscribed 32.61 times by investors largely influenced by qualified institutional buyers who subscribed 87.56 times. Meanwhile, retail investors had subscribed to the IPO by 5.53 times.

The buzz around IPOs in general and the engineering and design company’s improving financial performance, have made investors bullish.

Analysts said that the electronics system design & manufacturing (ESDM) market is expanding on the back of China+1 strategy, import substitution, ‘Make in India’ programme and government incentives.

The company will use IPO money to fund capex requirements for setting up manufacturing units, long term working capital and general corporate purposes.

The technology-focused engineering and design company is engaged in turnkey electronics manufacturing services. It specializes in manufacturing for diverse industries, including industrial appliances, automotive, healthcare, consumer products and IT industries.

Some of its marquee customers include TVS Motor Company, A O Smith India Water Products, Robert Bosch Engineering and Business Solution, Eureka Forbes and Hindustan Unilever.

SEE ALSO: India Inc.’s credit profiles improve as earnings growth outpaces debt: S&P
Dreamfolks Services IPO subscribed 3.37x on day 2 on strong retail investor demand

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