After a long time, there has been a new listing today - Syrma SGS Technology; as against the IPO price of Rs.220, it got listed on the BSE at Rs.262 and even went up to a high of Rs.309.80.
The IPO was subscribed 32.61 times whereas its retail portion was subscribed 5.53 times, QIB by 87.56 times and NII by 17.50 times.
In our IPO Analysis, we had concluded - Healthy growth visibility and attractive pricing make the IPO a ‘subscribe’.
Syrma SGS is engaged in making high-mix, low-volume products, like printed circuit board assemblies (PCBA) and custom radio frequency identification (RFID) tags for industrial, automotive, healthcare and consumer use. Unlike Dixon and Amber which operate at 10-15% gross margin, Syrma’s gross margin is almost 30%, leading to 11-13% EBITDA margin over 4%-7% for the already-listed peers.