Home IPO Syrma Sgs IPO Subscription status: Syrma SGS public issue subscribed 33X as IPO market warms up again

Syrma Sgs IPO Subscription status: Syrma SGS public issue subscribed 33X as IPO market warms up again

by Chris Williams
The public issue of Syrma SGS Technology, the first in nearly three months, was subscribed nearly 33 times on the fourth and final day of bidding on Thursday, led by strong demand from institutional investors. According to stock exchange data, the issue received bids for 93.15 crore shares against the 2.86 crore shares on offer. The Rs 840 crore issue mobilised a demand worth Rs 19,400 crore.

The qualified institutional buyers’ portion was subscribed 87.56 times, while the portion reserved for high networth individuals was subscribed 17.5 times. The retail investors’ portion received bids for 5.53 times the shares set aside for them.

“Strong response to Syrma SGS public issue will hopefully open up the IPO market which has been shut for a long time,” said Dharmesh Mehta, MD & CEO, DAM Capital Advisors lead banker for the issue. “A good company at a decent valuation will always have a strong appetite.”

The Syrma SGS IPO consisted of a fresh issue of shares worth Rs 766 crore and an offer for sale of up to 33.69 lakh shares. The IPO, the first in nearly three months, opened on August 12 for a subscription. Syrma SGS Technology raised Rs 252 crore from anchor investors last week ahead of its initial share sale.

The net proceeds from the fresh share issue will be utilised for funding capital expenditure requirements to expand manufacturing and R&D facilities and to fund long-term working capital requirements.

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