1) About the business
Engineering and design firm Syrma SGS Technology provides comprehensive electronics manufacturing services (EMS). It specializes in precision manufacturing for a variety of end-use sectors, including the IT, automotive, healthcare, consumer items, and industrial appliance sectors.
Printed circuit board assemblies (PCBA), radio frequency identification (RFID) goods, electromagnetic and electromechanical parts, motherboards, DRAM modules, solid state drives, USB drives, and other memory products are among the products the company offers to a variety of industries.
The company presently conducts business out of 11 manufacturing facilities located in Himachal Pradesh, Haryana, Uttar Pradesh, Tamil Nadu, and Karnataka. The company also has one research and development facility in Germany and three dedicated facilities in India.
TVS Motor Company, A O Smith India Water Products, Robert Bosch Engineering, Business Solution, and Eureka are some of its most notable clients.
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2) Financials
The company served more than 200 customers in the previous fiscal year, 16 of whom have been a part of the business for more than ten years. This contributed to proforma revenue of Rs. 262.8 crores in FY22, while exports accounted for 44% of proforma revenue in FY22 compared to 53% in FY21.
3) Key shareholders
At the time of submitting the RHP, promoters Sandeep Tandon, Jasbir Singh Gujral, Veena Kumari Tandon, and Tancom Electronics held a combined 61.47% of the company’s shares, or a 57.12% equity ownership. Holdings LLC, Malabar Select Fund, and South Asia Growth Fund II are among the investors with 7.53% and 1.22% stakes in the business, respectively.
4) Management
The company’s Executive Chairman is Sandeep Tandon, and its Managing Director is Jasbir Singh Gujral.
The Non-Executive Directors on the board are Jaideep Tandon, Jayesh Doshi, and Sridhar Narayan, while the Independent Directors are Kunal Shah, Anil Nair, Hetal Gandhi, and Smita Jatia, and Bharat Anand.
Sreeram Srinivasan, who has over 20 years of experience in business operations, is the company’s Chief Executive Officer. Previously, he held positions as Vice President (operations) at Rane Engine Valves, President and Executive Director at Shanti Gears, Managing Director at Saint Gobain Sekurit India, and CEO of MTAR Technologies.
The company’s Chief Financial Officer is Bijay Kumar Agrawal. He has about 16 years of financial and business strategy experience.
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5) Date of listing and allotment of IPO shares
By August 23, the company will finalize the basis for the share allocation, and by August 24, it will start initiating reimbursements for unsuccessful investors. By August 25, qualifying investors’ demat accounts will receive credit for their equity shares.
Finally, equity share trading will begin on the BSE and NSE starting on August 26.
6) Allocation of shares to investors and lot size
50% of the issue size is set aside for accredited institutional investors, including anchor book;15% of the offer is allocated to non-institutional investors, and the remaining 35% is set aside for retail investors.
Investors may make a minimum offer of 68 equity shares and a maximum offer in multiples of 68 equity shares. Therefore, since they are permitted to spend up to Rs2 lakh, the lowest investment by retail investors at the upper end of the pricing range will be Rs14,960 per lot, and the maximum investment against 13 lots will be Rs1,94,480.
7) IPO size
The initial public offering consists of a new Rs766 crore issuance and a 33.69 lakh equity share offer for sale.
The company will have raised a total of Rs840 crore at the top of the price range.
Before publishing the red herring prospectus, the company had already raised Rs110 crore through the pre-IPO placement of 37.93 lakh shares. The aforementioned capital raising was conducted at a share price of Rs290, a 32% premium to the issue price of Rs220.
8) IPO date
The offer’s subscription period will begin on August 12 and end on August 18, 2018. On August 11, the anchor book will be accessible for a day.
9) Price band
The price range for the offer has been set by the business at Rs209 and Rs220 per share.
10) Deployment of IPO funds
Syrma will use the proceeds from its recent offering to pay for the capital requirements for building out its R&D center. In addition to general corporate purposes, the money will be used for working capital requirements, manufacturing facility expansion or establishment, and other related activities. The selling promoter will receive the offer for sale money.
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