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Syrma SGS Files Documents to Raise Rs 1,200 Cr Through IPO

As per market sources, the company is looking to garner between Rs 1,000 crore and Rs 1,200 crore. Electronic manufacturing services firm Syrma SGS Technology has filed preliminary papers with capital markets regulator Sebi to raise Rs 1,200 crore through an initial public offering (IPO). The general issue comprises a fresh point 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 the new issue will be utilized for funding capital expenditure requirements to expand manufacturing and R&D facilities, funding long-term working capital requirements besides general corporate purposes.

Syrma SGS is a technology-focused engineering and design company engaged in turnkey electronics manufacturing services (EMS) specializing in precision manufacturing. Its customers include TVS Motor Company, AO Smith India Water Products, Robert Bosch Engineering & Business Solutions, Eureka Forbes, and Total Power Europe BV.

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.

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Syrma SGS TechnologySyrma SGS Files Documents to Raise Rs 1,200 Cr Through IPO