30% listing pop! Time to book profits in Syrma SGS Tech?

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

The stock ended at Rs 313.05, 42.3 per cent higher than its IPO issue price.

What should investors do now after the solid rally?

Market experts largely remain positive on the stock in the longer run, with a few suggesting to book profits partially.

The company’s good listing can be attributed to positive market sentiments, outstanding prospects, and a good response from investors, analysts said.

Santosh Meena, Head of Research, Swastika Investmart, believes that the company deserves a higher premium multiple due to its phenomenal growth prospects.

"Those who applied for listing gains can maintain a stop loss of Rs 225. New investors can buy for the long term and existing investors are recommended to stay invested in the company," Meena said.

Chennai-based Syrma SGS Technology is among India's leading and fastest-growing electronics system design and manufacturing companies. It has three dedicated R&D facilities located in Chennai, Gurgaon and Stuttgart, Germany.

Astha Jain, Senior Research Analyst, Hem Securities suggested investors to book partial profits in the company following a strong listing pop. Though, she remains positive on it in the longer run.

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

The Rs 840-crore IPO of Syrma SGS Technology was sold in the range of Rs 209-220 per share apiece and received a strong investor response during the bidding process between August 12-18 as it was subscribed 32.61 times.

The quota reserved for qualified institutional buyers (QIBs) was subscribed 87.56 times while the portions reserved for non-institutional investors (NIIs) and retailers were subscribed 17.5 times and 5.53 times, respectively.

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