Syrma Technology SGS IPO: What GMP signals ahead of share allotment

After a bleak two and a half months, the initial public offering of Syrma SGS Technology has created quite a buzz among investors. The public issue of the company saw a great response and was subscribed 32.61 times. The retail portion was booked 5.53 times. The enthusiasm of investors was also noticed by the grey market. According to reports, the grey market premium (GMP) of Syrma SGS Technology surged to Rs 59 after the public issue was closed. This marks a sharp jump of Rs 13 from the GMP of the company on the last day of bidding. What does this mean? GMP or grey market premium indicates what the shares of the company should list at on the stock exchanges. As the GMP indicates, the stock of Syrma SGS Technology is expected to be listed at a premium of Rs 59. This means that the stock could be listed about 27 percent higher than its price band of Rs 209-220. However, investors should be aware that there are other factors which also affect the listing price of a company’s shares. Interested individuals should look closely into a company’s financials to create a more concrete picture of the listing possibilities. Share Allotment: The Syrma SGS Technology shares are expected to be allotted on 23 August. The shares are likely to be listed on the BSE and NSE on 26 August. Details of the public issue: The Syrma SGS Technology IPO opened on 12 August. The public issue, which closed on 18 August, received bids for 6,48,39,020 shares against the 2,85,63,816 shares being offered, as per data from the exchanges. The Rs 840-crore IPO consists of a fresh issue of Rs 766 crore and an offer for sale of shares worth Rs 74 crore. The money will be utilised by the Chennai-based company for funding its working capital requirements, setting up R&D facilities, and expansion of its manufacturing capabilities. Syrma SGS Technology is one of the fastest growing companies in the country in the sector of electronics system design and manufacturing. The company has been involved in turnkey electronics manufacturing services (EMS) since it was established in 2004. Read all the Latest News , Trending News ,  Cricket News , Bollywood News , India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.