CYIENT DLM Limited’s IPO opens on June 27 closes on June 30

Price Band fixed at ₹ 250 per equity share to ₹ 265 per equity share of face value of ₹ 10 each of Cyient DLM Limited

Anchor Investor [Bid/Issue Period]– Monday, June 26

• Bid /Issue Opening Date – Tuesday, June 27, 2023 and Bid/ Issue Closing Date – Friday, June 30

• Bids can be made for a minimum of 56 Equity Shares and in multiples of 56 Equity Shares thereafter

BILKULONLINE

Ahmedabad, June 23: Cyient DLM Limited proposes to open its initial public offering comprising a fresh issue of such number of Equity Shares aggregating up to ₹ 5,920.00 million on Tuesday, June 27, 2023. Bid/ Issue Closing Date will be Friday, June 30, 2023. The Anchor Investor Bid/Issue Period is one Working Day prior to the Bid/Issue Opening Date, that is, Monday, June 26.The Price Band for the Issue has been fixed from ₹ 250 per Equity Share to ₹ 265 per Equity Share. Bids can be made for a minimum of 56 Equity Shares and in multiples of 56 Equity Shares thereafter.

The Company has in consultation with the BRLMs, undertaken a private placement of 4,075,471 Equity Shares aggregating to ₹ 1,080.00 million. The company intends to utilize the net proceeds from the issue towards the funding of the following objects:

1. Funding incremental working capital requirements of the company,
2. Funding capital expenditure of the company,
3. Repayment/prepayment, in part or full, of certain of the borrowings,
4. Achieving inorganic growth through acquisitions, and
5. General corporate purposes.

The allotment of shares is expected to be finalised on July 5 and refunds will be initiated on July 6. Cyient DLM shares will list on exchanges on July 10.

The Company has in consultation with the BRLMs, undertaken a private placement of 4,075,471 Equity Shares aggregating to ₹ 1,080.00 million.

The initial public offering (IPO) of Cyient DLM, a subsidiary of Cyient, will open for subscription on June 27 and close on June 30. The company has fixed the price band for the issue at ₹250 to 265 per share. The anchor book will open on June 26 for a day. 

Cyient DLM IPO is a main-board IPO of 22,339,623 equity shares of the face value of ₹10 aggregating up to ₹592.00 Crores. The issue is priced at ₹250 to ₹265 per share. The minimum order quantity is 56 Shares.

Kfin Technologies Limited is the registrar for the IPO. The shares are proposed to be listed on BSE, NSE.

Cyient DLM Ltd is a subsidiary of Cyient Ltd; the Hyderabad based industry-centric technology Solutions Company. Cyient holds 92.84% if the capital of Cyient DLM Ltd while Amansa Investments of Singapore holds the balance 7.16%. The promoters of Cyient DLM hold 18 shares each as nominees of Cyient Ltd. The company was incorporated in the year 1993 to provide electronic manufacturing services (EMS). Cyient DLM undertakes these EMS services as Built to Print (B2P) or as Built to Specifications (B2S) services. The latter is a more comprehensive version of the former.

The B2P business entails the client giving them the design specifications for the product and Cyient DLM only manufacturing as per the specifications. The B2S service is more elaborate and includes designing the product based on specifications and then manufacturing it. The EMS solutions offered by Cyient DLM comprises of PCBA (printed circuit board assembly), cable harness and box build used in safety systems in aircraft cockpits. Some of its prestigious clients include Honeywell, Thales, and BEL; among others. The Book running lead managers to the IPO are JM Financial and Axis Capital Ltd. KFIN Technologies Ltd will be the registrars to the issue.

However, like any technology IPO, the risks are high and it is meant for investors with a higher risk appetite as well as a longer holding period. For investors who missed the EMS stories in the past, this is a good opportunity.