MUMBAI, AUGUST 12, 2022 (GPN): Syrma SGS Technology, one of the fastest growing Indian headquartered providers of electronic design and manufacturing services for global & domestic Original Design and equipment manufacturers (ODMs and OEMs), has garnered Rs 252 crore from anchor investors ahead of its initial share sale that opens for public subscription on Friday. The company informed the bourses that it allocated 1,14,56,261 shares at Rs. 220 per share on Thursday, August 11, 2022, to anchor investors.

Nomura, Prudential plc., Volrado Venture Franklin India, BNP Paribas and Abakkus are among the investors that participated in the anchor book.

In addition, shares have been allocated to domestic funds ICICI Prudential, Franklin India, Tata Mutual Fund, IDFC Mutual Fund, Edelweiss Mutual Fund are among the investors that participated in the anchor book.

Out of the total allocation of 1,14,56,261 equity shares to the anchor investors, 38,18,754 equity shares were allocated to 5 mutual funds through 7 schemes amounting to Rs 84.01 crore i.e. 33.33% of the Total Anchor Book Size.

Promoted and led by Sandeep Tandon and Jasbir Singh Gujral, Syrma SGS, is a technology-focused engineering and design company engaged in turnkey electronics manufacturing services (“EMS”) that specialises in precision manufacturing.

From Manufacturing High Precision Coils for Hard Disk Drives and USB drives for the IT Industry; Set Top Box requirements for the Home Entertainment Industry; 4G and now 5G Modules for the Telecom Industry; Hall Sensor PCBAs, Vehicle Tracking Systems, Toll Management Systems, Beacons, 4W Lighting System Boards, EV Battery Management Systems for the Automotive End Use Industry; Automatic Dimmers, Induction Cooktop Components, Boiler Management PCBA units, Energy Efficient Electronic Inverters, Home Appliance Control PCBAs for the Consumer Products Industry; Direct Digital Dental X-ray FGPA Controllers, PCBAs for X-Ray Machines, Smart Canes for Visually Challenged People, Augmented Reality Equipment for Ophthalmological Applications addressing the requirements of the Healthcare Industry, the company caters to diverse industries and has come a long way since its incorporation in 2004. It stands to be one of the leading Printed Circuit Board Assembly manufacturers in India and a top global manufacturer of custom RFID tags.

Its marquee customers include TVS Motor Company Limited, A. O. Smith India Water Products Pvt. Ltd., Robert Bosch Engineering and Business Solution Pvt Ltd, Eureka Forbes Ltd Limited, CyanConnode Limited, Atomberg Technologies Private Limited, and Total Power Europe B.V. The companies aggregated wallet share from its top 10 and top 20 customers increased by CAGR of 26.20% and 25.79% respectively from FY20 to FY22.

It currently operates through eleven strategically located manufacturing facilities in north India (i.e. Himachal Pradesh, Haryana, and Uttar Pradesh) and south India (i.e. Tamil Nadu and Karnataka) and three dedicated R&D facilities, two of which are located in India at Chennai, Tamil Nadu and Gurgaon, Haryana respectively, and one is located in Stuttgart, Germany.

Syrma’s Proforma EBIDTA, considering SGS Tekniks and Perfect ID revenues from operations attributable to the industrial appliances industry, consumer products industry, automotive industry, IT industry, and other industries grew at a CAGR of 15.83%, 15.11%, 37.40, 821.03% and 426.59%, respectively from Fiscal 2020 to Fiscal 2022.

Dam Capital Advisors Limited, ICICI Securities Limited, and IIFL Securities Limited are the book running lead managers to the issue, and Link Intime India Private Limited is the registrar of the Issue.

IPO Details

The IPO consists of a fresh issue of equity shares aggregating to Rs 766 crore and an offer for sale (OFS) of up to 3,369,360 equity shares. The proceeds from its fresh issuance worth Rs 403 crore will be utilized for funding capital expenditure requirements for the development of an R&D facility and expansion / setting up of manufacturing facilities; Rs 131.58 crore for funding long-term working capital requirements and general corporate purposes.

The Company is proposing to open its initial public offering of Equity Shares (the “Offer”) on Friday, August 12, 2022, and closes on Thursday, August 18, 2022. The price band for the Offer has been determined at Rs 209 – Rs 220 per equity share.

The IPO will fetch Rs 840 crore at the upper end of the price band.

Investors can bid for a minimum of 68 equity shares and in multiples of 68 equity shares thereafter.

The Offer is being made in terms of Rule 19(2)(b) of the Securities Contracts (Regulation) Rules, 1957, as amended, read with Regulation 31 of the SEBI ICDR Regulations.

The Offer is being made through the Book Building Process, in compliance with Regulation 6(1) of the SEBI ICDR Regulations, wherein not more than 50% of the Offer shall be available for allocation to Qualified Institutional Buyers, not less than 15% of the Offer shall be available for allocation to Non-Institutional Bidders and not less than 35% of the Offer shall be available for allocation to Retail Individual Investors.