Syrma sgs quotation: 30% pop quotation! Time to book profit in Syrma SGS Tech?

New Delhi: Syrma SGS Technologies made a strong debut in Dalal Street on Friday as the stock listed at a 19% premium at Rs 262 on BSE to its issue price of Rs 220. The company debuted with an 18% premium at Rs 260 on the National Stock Exchange (NSE).

The stock ended at Rs 313.05, 42.3% higher than its stock market issue price.

What should investors do now after the strong recovery?

Market pundits remain largely positive on the long-term stock, with a few suggesting to partially book profits.

The company’s strong rating can be attributed to positive market sentiment, an outstanding outlook and good investor response, analysts said.

Santosh Meena, Research Manager,

, believes the company deserves a higher premium multiple due to its phenomenal growth prospects. “Those who requested listing gains can maintain a stop loss of Rs 225. New investors can buy long term and existing investors are recommended to stay invested in the business,” Meena said.

Based in Chennai, Syrma SGS Technology is among the leading and fastest growing electronic system design and manufacturing companies in India. It has three dedicated R&D facilities located in Chennai, Gurgaon and Stuttgart, Germany.

Astha Jain, Senior Research Analyst, Hem Securities suggested investors book partial profits in the company following a strong listing. However, it remains positive in the long term.

“One can hold the stock for 3-4 months as there is more steam left on the counter. However, reserving a partial profit is a prudent approach to taking money off the table,” she said.

Syrma SGS Technology’s Rs 840 crore IPO sold in the range of Rs 209-220 per share each and received a strong response from investors during the bidding process between the 12th and 18th August, as it was subscribed 32.61 times.

The share reserved for qualified institutional buyers (QIB) was subscribed 87.56 times while the shares reserved for non-institutional investors (NII) and traders were subscribed 17.5 times and 5.53 times respectively.

(Disclaimer: The recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)