The company has set the price band for Cyient DLM IPO at ₹250 to ₹265 per equity share, aiming to raise ₹592 crore through the issuance of 22,339,623 new shares
Cyient DLM, a subsidiary of Cyient, has initiated its Initial Public Offering (IPO) today, June 27, inviting the public to subscribe until June 30. The company has set the price band for Cyient DLM IPO at Rs 250 to Rs 265 per equity share, aiming to raise Rs 592 crore through the issuance of 22,339,623 new shares.
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Cyient Ltd, the parent company of Cyient DLM, will still own most of the shares at 66.68%. Market experts suggest that the Grey Market Premium (GMP) for Cyient DLM IPO is Rs 100, indicating that the listing price is expected to be around Rs 365 (Rs 265 + Rs 100), about 35% higher than the price band of Rs 250 to Rs 265.
The grey market premium is like a prediction or expectation of the future price of a company’s shares before they start trading on the stock exchange. It is an unofficial market where people trade shares before they are officially listed.
Prior to the IPO launch, Cyient DLM secured Rs 259.64 crore from 20 anchor investors on June 26, including notable names like Societe Generale, BNP Paribas Arbitrage and Amansa Holdings. The allocation of shares is projected to occur on July 5, with trading on the stock exchange is expected to start on July 10.
As of 11:03 AM on the first day of IPO, the company received a subscription of 41% of the available shares, while individual investors have shown interest in buying about 76% more shares than what’s available to them.
According to Market Today, Cyient DLM made a net profit of Rs 31.73 crore and a total revenue of Rs 838.34 crore for the fiscal year ending on March 31, 2023. In the previous year, the company achieved a net profit of Rs 39.80 crore and a total revenue of Rs 728.48 crore.
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As per a report by Moneycontrol, the company is benefiting from the strong growth of the global electronic manufacturing services (EMS) market. India’s EMS market accounted for 2.2% (More than one trillion) of the global EMS market in 2022. It is the fastest-growing market among all countries, growing at a rate of 32.3% every year.
Cyient DLM is a wholly owned subsidiary of Cyient, a company specialising in engineering services and digital transformation solutions. Cyient DLM offers Build to Print (B2P) and Build to Specification (B2S) services. B2P solutions involve manufacturing of products based on designs provided by a client, while B2S services involve designing and manufacturing products based on client specifications.
