Syrma SGS Tech IPO Listing Day Strategy: D-St Debut Aug 26, Check Gray Market Premium; buy, sell, hold?

Syrma SGS Technology’s IPO valued at Rs 840 crore, which was 32.61 times oversubscribed, will make its debut in the stock market on Friday 26th August. This was the first company to go public with an IPO in over two months. The IPO shares were sold in a price range of Rs 209-220. In the gray market, shares of Syrma SGS Tech were listed at a premium of Rs 54 on Thursday. The offering received bids for 931.4 million shares compared to 28.5 million shares on offer, according to data available on the exchanges.

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Syrma SGS Tech IPO listing day trading strategy

After a long hiatus of almost two months, the primary markets will be operational again with the listing of Syrma SGS. Analysts say Syrma SGS has received a decent response from investors across all categories. “Broader market conditions also appear favorable. Considering these factors, Syrma SGS can be a strong candidate for listing that can be listed at a reasonable premium of 20-25% above its issue price,” said Abhay Doshi, founder of UnlistedArena.com, which deals with premarket and unlisted stocks trades, to FinancialExpress .com.

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Should You Buy, Sell, Hold?

Shares in electronic manufacturing services provider Syrma SGS Technology traded at a premium of more than 24% in the gray market on Aug. 26, signaling an encouraging start for the company, said Rahul Goud, research analyst – Equity Research, to FinancialExpress.com. Goud said that in relation to Syrma, the gray market premium (GMP) was around Rs.50-55 or 22-25% above the final issue price of Rs.220 per share. His clients include TVS Motor Company, AO Smith India Water Products, Robert Bosch Engineering and Business Solution, Eureka Forbes and Total Power Europe BV.

Rahul Goud said that keeping the issue price below the pre-IPO placement price, better financial performance, strong client relationship and diversified product portfolio together with experienced promoters could be the reasons that investors could wait for some correction on listing day . “Investors can buy dips around Rs. 230 for long-term investments,” he added.

Through its pre-IPO placement, the company had already raised Rs 110 crore for 37.93 lakh shares, showing people’s belief in the company’s growth, Rajesh Singla, CEO of Planify, told FinancialExpress.com. According to the company, the fundraising was Rs.290 per share, a 32% premium to the Rs.220 issue price. Singla added that the company is expected to trade at 270-280 rupees and may gain further momentum if institutional buying comes in the stock. “Investors who have received the allocation should hold the stock for further gains,” advised Singla.