Four days of subscription for the Rs 840 crore initial public offering (IPO) of Sirma SGS Technologies ends today. According to the Chirma SGS Technologies IPO subscription status, by 12:34 PM today, the 4th day of the auction, the shares were overbid 4.64 times the public offer.
Whereas its retail segment trades at 3.80 times. Meanwhile, Sirma SGS Technologies share price is trading almost flat in the market in the last 24 hours. Earlier, the face value of these shares was fixed at Rs.36.
These stocks sold more than expected. Investors have invested heavily in it.
How will Chirma’s financial numbers look?
Compared to the year ended March 2021, the company’s revenue growth in FY22 was 43% at Rs 1,267 crore. The company’s net profit in March 2022 increased by 17% to Rs 76.46 crore.
What does Chirma make?
According to the company’s filing with the Securities and Exchange Board of India (SEBI), Syrma is currently manufacturing modules for 5G technology infrastructure. The company entered the automotive end-use sector in 2007.
It has since produced vehicle tracking systems and toll management systems in 2009 and beacons for vehicles in 2012. “Considering the advancement of electric vehicles, we have also started production of controllers.
The company currently has a total of 11 manufacturing facilities in states like Himachal Pradesh, Haryana, Uttar Pradesh, Tamil Nadu and Karnataka. It also has three dedicated R&D facilities.
Two of them are in Chennai and Gurgaon and one is in Stuttgart, Germany. It counts TVS Motors, Robert Bosch Engineering and Business Solutions, Eureka Forbes and Hindustan Unilever among its clients.
IPO, Sirma SGS Technologies IPO: What are the potential risks?
In the Red Herring Prospectus (RHP), Syrma said that one of the key challenges for its business is that its customers have told the company that “cancellations or changes could adversely affect our financial position, cash flows and results of operations”.
Another risk is that the company incurs high costs while adhering to production and quality standards. Chirma SGS is headquartered in Chennai. The company plans to raise Rs 840 crore through share sale.
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