Leading IT services and solutions provider Synoptics Technologies has fixed the issue price of Rs 237 for its initial public offering (IPO).
The subscription to the IPO is scheduled to open on June 30 and close on July 5. The company’s shares will be listed on July 13 on NSE Emerge, a platform for small and medium enterprises, the company said in a statement.
The Mumbai-based company plans to raise Rs 54 crore through its initial share sale. The share sale comprises a fresh issue of 1,480,00 equity shares and an offer for sale (OFS) of 8 lakh equity shares.
The proceeds from the IPO will be used for meeting the company’s working capital requirements, acquisition of businesses in similar or complementary sectors, general corporate objectives and its issue expenses.
“The IPO will provide the company with the necessary financial resources to fuel its growth, expand its market presence and capitalize on emerging opportunities in the IT services sector,” it said in a statement. Analyst Dilip Davda has recommended Apply for the issue, underscoring the long-term profit potential.
Established in 2008, the company specializes in providing comprehensive IT infrastructure solutions. Its client list includes big names like BSNL, Aditya Birla Group, State Bank of India. It has recently signed an agreement with BSNL, thereby establishing itself as the authorized private LTE/5G service partner across the country.
The IPO pricing indicates an attractive valuation. Based on this, the company is seeking a market capitalization of around Rs 200.98 crore.
The company aims to use the net proceeds from the IPO for a number of strategic objectives. These include repayment of certain borrowings, funding of additional working capital requirements and others.