India’s Syrma SGS Technology to raise $157m through IPO
By Vinu Lal
11:42, 15 December 2021
India’s Syrma SGS Technology, a provider of electronic design and manufacturing services, filed early papers for an initial stake sale to the public, according to a web posting by one of its issue managers.
The company, based out of the west-Indian city of Mumbai, is yet to finalise the per-share price and date of subscription for the initial public offering (IPO).
Syrma SGS Technology intends to raise up to INR1bn-1.2bn ($130.95m-$157.15m) through the IPO, according to a report in The Financial Express newspaper.
Fresh issue and OFS
The company’s IPO comprises a fresh issue of shares worth INR9.26bn and an offer for sale (OFS) up to 3.37 million shares by an existing investor.
The firm would consider raising up to INR1.8bn through a pre-IPO placement, according to the Draft Red Herring Prospectus (DRHP) or early papers filed with the regulator.
The company would use INR5.7bn of the net proceeds for the making of a research and development facility and for the expansion and setting-up of manufacturing facilities. It would use INR1.32bn for long-term working capital and a yet-to-be-finalised amount for general business purposes, according to the DRHP.
Set up in 2004, the company is into manufacturing high precision coils for hard disk drives and USB drives, 4G and 5G modules for the telecom industry, vehicle tracking systems, toll management systems, electric vehicle battery management systems, induction cooktop components and smart canes for visually challenged people among others.
Its clientele includes TVS Motor Company, A O Smith India Water Products, Robert Bosch Engineering and Business Solution, Eureka Forbes, CyanConnode, Atomberg Technologies and Total Power Europe among others.
Syrma SGS Technology currently has 11 manufacturing facilities in north Indian states of Himachal Pradesh, Haryana and Uttar Pradesh and south Indian states of Tamil Nadu and Karnataka. It has three R&D facilities, two of which are in India (Chennai in Tamil Nadu and Gurgaon in Haryana) and one in Stuttgart, Germany.
Dam Capital Advisors, ICICI Securities and IIFL Securities are the managers of the issue.