Jobaaj Stories
26th August marked the debut of Syrma SGS, and it was fantastic!
Syrma SGS, an engineering and design company engaged in Electronics Manufacturing Services, floated its IPO, worth around Rs 840 crores, on 12th August 2022. The shares were allotted to subscribers at Rs 220 per share in the IPO.
QIBs, which were allotted 50% of the entire issue, rushed to apply for the IPO as the QIB portion of the issue was subscribed a staggering 87.56x times!!
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NIIs followed suit with an oversubscription of 17.5x times while the retail portion was oversubscribed 5.53x times. The issue, as a whole, was oversubscribed a massive 32.61x times!
The IPO, of which Rs 766 crores was going to the company, was to fund the company's Capex plans for the development of an R&D facility, funding its long-term capital requirements, and other general corporate purposes.
Ahead of Syrma SGS's listing yesterday morning, the company had a strong premium in the grey market, exchanging hands at a premium of Rs 55-60 per share, which normally suggests a strong listing.
The stock was listed at 10:00 am on 26th August at a premium of 18.2%, at Rs 260 per share. Within 15 minutes, the stock touched Rs 293.15 per share. The stock kept showing robust growth as it touched a high of Rs 309.75 per share by 12:30 pm. Finally, the stock closed at Rs 310.50 per share, up 19.4% since listing.
The initial investment of retail investors i.e. Rs 14,960 (Rs 220x 68 shares) grew 41% to Rs 21,114 (Rs 310.50x 68 shares) in a single trading session!!
Today, the stock opened at Rs 309.5 per share.
After yesterday's performance, brokerages have maintained that long-term investors should maintain their position since the company appears to have strong fundamentals. In contrast, short-term traders, who applied for listing gains, should book full profit.
Article by Aman Agarwal.
This story is brought to you in association with Jobaaj.com
