Syrma SGS Technology files draft papers with Sebi to raise up to Rs 1,200-cr via IPO

Electronic manufacturing services firm Syrma SGS Technology has filed preliminary papers with capital markets regulator Sebi to raise up to Rs 1,200 crore through an initial public offering (IPO).

The public issue comprises fresh issue of shares worth Rs 926 crore, and an offer for sale (OFS) of up to 33.69 lakh equity shares by Veena Kumari Tandon, according to the draft red herring prospectus (DRHP).

The company may also consider raising Rs 180 crore via a pre-IPO placement before filing its red herring prospectus and, if that happens, the issue size will be altered accordingly.

As per market sources, the company is looking to garner between Rs 1,000 crore and Rs 1,200 crore.

The net proceeds from fresh issue will be utilised for funding capital expenditure requirements to expand manufacturing as well as R&D facilities, funding long-term working capital requirements besides general corporate purposes.

Syrma SGS is a technology-focussed engineering and design company engaged in turnkey electronics manufacturing services (EMS) specialises in precision manufacturing.

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Its customers include TVS Motor Company, A. O. Smith India Water Products, Robert Bosch Engineering and Business Solution, Eureka Forbes and Total Power Europe B.V.

The company currently operates through 11 strategically located manufacturing facilities in north India -- Himachal Pradesh, Haryana and Uttar Pradesh-- and south India --Tamil Nadu and Karnataka-- and three R&D facilities, two of which are located in India at Chennai, Tamil Nadu and Gurgaon, Haryana, and one is located in Stuttgart, Germany.

In September 2021, Syrma Technology acquired Gurugram-based SGS Tekniks in a cash and stock deal. Additionally, they acquired Perfect ID in October 2021

Dam Capital Advisors, ICICI Securities and IIFL Securities are the book running lead managers to the issue.

Recently another EMS company Elin Electronics filed Rs 760 crore IPO papers with Sebi.