The issue kicked off for bidding on Friday, August 12 and will remain open till Thursday, August 18. The company is selling its shares in the range of Rs 209-220 apiece to raise Rs 840 crore through the primary route.
According to the data from BSE, the investors made bids for 19,52,416 equity shares or only 7 per cent of the issue compared to the 2,85,63,816 equity shares offered for the subscription by 11.45 am Friday, August 12.
The quota for retail bidders was subscribed 14 per cent, whereas the allocation for HNI investors fetched only 1 per cent bidding. The quota for institutional investors was not even off to mark.
The company has reserved 50 per cent of the net offer for qualified institutional buyers (QIBs) and 15 per cent for non-institutional buyers (NIIs). The remaining 35 per cent shares will be given to the retail bidders.
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.
Brokerage firms have mixed opinions on the counter. However, the majority of them have suggested subscribing to the issue with some words of caution over the fully priced valuations in the growing sector.
Santosh Meena, Head of Research,
said the business has had success using inorganic means to add new product lines and expand its geographic reach.
“The issue has been priced at a premium valuation, which is acceptable given its growth potential and competitive advantages,” he added with a subscribe recommendation on the issue.
Arafat Saiyed, Senior Research Analyst,
Securities said that the IPO is at a discount to pre-IPO placement price and it is one of the fastest growing Indian ESDM companies with a track record of technical innovation and marquee customers.
“Syrma is well placed to capitalize on domestic and global opportunities. Owing to superior technology-based manufacturing domain, healthy product mix, diversified product portfolio, strong R&D capabilities, and capacity addition,” he added with a subscribe rating.
The electronic manufacturing services firm raised Rs 252 crore from anchor investors as it allocated a total of 114,56,261 equity shares to anchor investors at Rs 220 apiece, aggregating to Rs 252.04 crore, according to a BSE circular.
Nomura, Kuber India Fund,
Arbitrage, Aditya Birla Sun Life Insurance Company, Mutual Fund (MF), Tata MF, MF and MF are among the anchor investors.
DAM Capital Advisors,
, and are the book-running lead managers for the offer, whereas Link Intime India is the registrar to the issue.