Franklin Templeton Mutual Fund Increases Stake in Syrma SGS Technology to 5.069%
Franklin Templeton Mutual Fund, through its various schemes, has increased its aggregate shareholding in Syrma SGS Technology Ltd to 5.069% of the total paid-up equity share capital. This acquisition, conducted via the open market, involved the purchase of 167,780 equity shares, raising their total holding from 4.975% to above the 5% threshold, necessitating a disclosure under Regulation 29(1) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.
Syrma SGS Technology Ltd Shareholding UpdateParticularsBefore AcquisitionAcquired in Transaction
After Acquisition
Number of Shares Held by Franklin Templeton Mutual Fund (and PACs)8,863,463167,780
9,031,243Percentage of Total Share Capital4.975%0.094%
5.069%Mode of Acquisition
Open MarketDate of Acquisition
July 09, 2025Target Company's Total Equity Share Capital
1,781,580,120 shares
Acquisition Details and Regulatory ComplianceThe acquisition was executed on July 09, 2025, through open market transactions on the National Stock Exchange of India Ltd and BSE Ltd, where Syrma SGS Technology Ltd's shares are listed. The specific acquisition of 167,780 shares, representing 0.094% of the company's total share capital, pushed Franklin Templeton Mutual Fund's cumulative holding, along with its Persons Acting in Concert (PACs), past the 5% mark. This crossing of the threshold mandates the disclosure as per SEBI regulations, ensuring transparency in significant shareholding changes.The total equity share capital of Syrma SGS Technology Ltd, both before and after this acquisition, remains constant at 1,781,580,120 shares. This indicates that the acquisition involved existing shares in the market rather than new issuance by the company.Impact on Shareholding StructurePrior to this specific transaction, Franklin Templeton Mutual Fund, along with its PACs, held 8,863,463 shares, accounting for 4.975% of Syrma SGS Technology's total voting capital. Following the acquisition of an additional 167,780 shares, their total holding has increased to 9,031,243 shares, translating to a 5.069% stake in the company. It is important to note that Franklin Templeton Mutual Fund does not belong to the Promoter or Promoter group of Syrma SGS Technology Ltd.The detailed breakdown of holdings across various schemes of Franklin Templeton Mutual Fund reveals that the recent acquisition was primarily driven by the Franklin India Flexi Cap Fund. While other schemes like Franklin India Smaller Companies Fund, Franklin India Opportunities Fund, Franklin India Multi Cap Fund, and Franklin Build India Fund also hold significant stakes in Syrma SGS Technology, their holdings remained unchanged in this particular transaction. The Franklin India Flexi Cap Fund increased its holding from 565,813 shares (0.318%) to 733,593 shares (0.412%) through the purchase of 167,780 shares.
Scheme-wise Shareholding of Franklin Templeton Mutual Fund in Syrma SGS Technology LtdName of SchemePre-acquisition SharesPre-acquisition %Shares Acquired in this TransactionPost-acquisition Shares
Post-acquisition %
Franklin India Smaller Companies Fund3,916,1152.198%03,916,115
2.198%Franklin India Opportunities Fund2,005,9311.126%02,005,931
1.126%Franklin India Multi Cap Fund1,375,6040.772%01,375,604
0.772%Franklin Build India Fund1,000,0000.561%01,000,000
0.561%Franklin India Flexi Cap Fund565,8130.318%167,780733,593
0.412%Total8,863,4634.975%167,7809,031,243
5.069%
Strategic ImplicationsThe increase in stake by a prominent mutual fund house like Franklin Templeton signifies continued investor confidence in Syrma SGS Technology Ltd. Such acquisitions by institutional investors are often viewed positively by the market, as they indicate a long-term investment perspective and belief in the company's growth prospects. While the immediate market impact of this specific disclosure is not provided in the context, crossing the 5% shareholding threshold is a notable event in corporate governance and investor relations.
Syrma SGS Technology Ltd, a leading electronics manufacturing services (EMS) provider, operates in a rapidly evolving sector. The continued investment by institutional players like Franklin Templeton Mutual Fund underscores the potential seen in the company's business model and future outlook. This disclosure ensures that all stakeholders are aware of significant changes in the company's ownership structure, maintaining transparency as required by regulatory frameworks.