The initial public offering (IPO) of Cyient DLM will kick off for subscription on Tuesday, June 27 as the company has announced to sell its shares in the fixed price band of Rs 250-265 apiece. The three-day stake sale will conclude on Friday June 30 as the markets will observe a holiday on Wednesday, June 28.
Incorporated in 1993, Cyient DLM provides Electronic Manufacturing Services (EMS) as build to print (B2P) and build to specification (B2S) services including product design, and flexible manufacturing services tailored to meet their specific requirements.
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The company is eyeing to raise a little more than Rs 592 crore from its initial stake sale, which entirely includes issuance of 2,23,39,623 fresh equity shares. Investors can make a bid of a minimum of 56 equity shares and its multiples thereafter.
The company also undertook a pre-IPO placement of 40,75,471 equity shares to Amansa Investments at a price of Rs 265 apiece amounting to Rs 108 crore. This has resulted in the reduction in the issue size, which was said at Rs 700 crore earlier. Cyient Ltd holds over 92.84 per cent stake in the Cyient DLM.
Cyient DLM has reserved shares worth Rs 15 crore for its eligible employees, who will get a discount of Rs 15 apiece for the issue. Not more than 75 per cent of the net offer is reserved for qualified institutional bidders (QIBs), while non-institutional investors will get 15 per cent of the offer. Retail bidders will be allocated with the remaining 10 per cent of the offer.
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Net proceeds from the fresh issue will be utilized towards funding incremental working capital requirements of the company, funding capital expenditure of the company, repayment or prepayment, in part or full, of certain of the borrowings; achieving inorganic growth through acquisitions; and general corporate purposes.
The core solutions provided by Cyient DLM encompass various key components, including printed circuit board assembly, cable harnesses, and box builds. These components play a crucial role in safety of critical systems. and its key customers include Honeywell International, Thales Global Services, ABB Inc, Bharat Electronics, and Molbio 152 Diagnostics among others.
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For the year ended on March 31, 2023, Cyient DLM clocked a net profit at Rs 31.73 crore with a total revenue at Rs 838.34 crore. The company’s net profit stood at Rs 39.80 crore with a total revenue at Rs 728.48 crore.
Axis Capital and JM Financial are the book-running lead managers to the issue, while KFin Technologies has been appointed as the registrar to the issue. Shares of Cyient DLM will be listed on both BSE and NSE, which is likely to be scheduled on Monday, July 10.
