Syrma SGS Technology, one of India’s leading providers of Printed Circuit Board Assembly and top global manufacturer of custom RFID tags has filed its draft red herring prospectus (DRHP) with market regulator SEBI for its INR 1200-crore IPO.
Incorporated in 2004, the company is a technology focussed engineering and design company engaged in electronics manufacturing services (EMS) specialises in precision manufacturing. The company manufactures key assembly items for leading original equipment manufacturers (OEMs) like Robert Bosch Engineering and Business Solutions Pvt. Ltd., Eureka Forbes, Total Power Europe B.V, CyanConnode Limited and TVS Motor Company Limited.
The company is expected to raise between INR 1,000-2,000 crore. It may also consider raising Rs 180 crore via a Pre IPO placement before filing its papers and, if that happens, the issue size will be altered accordingly.
The company will use the money for the expansion of its manufacturing & R&D facilities and funding long-term working capital requirements.
Syrma SGS technology aggregated customers increased by CAGR of 31.88% and 34.38% respectively from FY19 to FY21. The company posted its revenues from operations for FY21 stood at Rs 116.80 crores, a CAGR of 5.90% year-on-year increase as compared to Rs 101.92 crores in FY19. Between FY19 and FY21, its revenues from operations from the IT and other industries grew at 702.36% and 1119.96%.
Dam Capital Advisors Limited, ICICI Securities and IIFL Securities Limited are the book running lead managers to the issue.
