Syrma SGS Technology Aims For Rs 1,000-Crore Fundraising Through QIP

Syrma SGS Technology Ltd. is raising Rs 1,000 crore through qualified institutional placement. In case the total issue gets subscribed, the equity dilution will be 7.43% of the post-issue outstanding equity paid-up capital.

The QIP opened on Thursday and will close on Friday. Dam Capital is the book-running lead manager for the issue.

The floor price at Rs 735.61 apiece for the issue is in line with the Securities Exchange Board of India's pricing formula. The previous closing price was Rs 710.40 apiece on the National Stock Exchange Ltd, which implied a discount of 1.60% from the issue price. The discount is below the 5% upper limit determined by the company.

As per standard, the trading window in Syrma SGS Technology's shares is closed for a period of 48 hours since the issue opened.

Syrma SGS Technology's shares issued in this QIP will receive trading approval from exchanges on Aug 14. On the same day. Institutional buyers participating in the issuance will receive the shares in their respective demat accounts.

On Aug. 18, shares will start trading on exchanges.

Syrma SGS Technology reported that its consolidated net profit surged 157.5% on the year to Rs 49.7 crore from Rs 19.3 crore. The surge in net profit happened because of operating leverage. Its Ebitda advanced 90.6% on the year to Rs 86.6 crore from Rs 45.4 crore. Its profit margin jumped 530 basis points year-on-year to 9.2% in the first quarter.

However, Syrma SGS Technology saw its consolidated revenue growth declining 18.6% year-on-year to Rs 944 crore compared to Rs 1,160 crore.