The three-day initial public offering (IPO) of Cyient DLM, a subsidiary of Cyient, will begin on June 27 and close on June 30 as the markets will observe a holiday on June 28. The anchor investors' subscription will open on June 26, the company announced today. The price band for the IPO has been fixed at ₹250-265 apiece. Shares of Cyient DLM are expected to be listed on domestic exchanges, BSE and NSE, on July 10.
The electronic manufacturing services (EMS) has cut issue size to ₹592 crore, as against ₹740 crore earlier. It has undertaken a private placement of 4,075,471 equity shares at a price of ₹265 apiece, amounting to ₹108 crore.
The issue is completely a fresh issue of 2,23,39,623 equity shares, aggregating up to ₹592 crore. Investors can apply for a minimum of 56 equity shares and its multiples thereafter.
As per the offer document filed with SEBI, the company has reserved up to 75% of the issue for qualified institutional buyers (QIBs), 15% for high net-worth individuals (HNIs), and 10% for retail investors.
The company intends to use the capital raised from the IPO for funding incremental working capital requirements, capital expenditure, as well as repayment or prepayment, in part or full, of certain of the borrowings. A part of the fund will be also used to achieve inorganic growth through acquisitions and meet general corporate purposes.
Axis Capital Limited and JM Financial Limited are the book-running lead managers (BRLMs) to the issue, while KFin Technologies has been appointed as the registrar to the issue.
Established in 1993, Cyient DLM is an electronics and mechanical manufacturing partner and systems supplier to some of the largest players across multiple industries. The company provides design-led manufacturing (DLM) solutions to customers and has expertise in safety-critical electronics in highly regulated industries. The company generates the majority of its revenues from printed circuit board assembly (PCBA), which contributes around 63% to the revenue. It derives 32% of the revenue from box builds, which are used in safety-critical systems such as cockpits, inflight systems, and medical diagnostic equipment.
On the financial front, the company has reported consistent growth in its top line in the last three financial years. For the financial year ended March 2023, the company posted revenue of ₹838.34 crore, ₹728.48 in FY22, and ₹636.91 crore in FY21. The profit after tax stood at ₹31.73 crore in FY23, compared with ₹39.80 crore in FY22, and ₹11.81 crore in FY21.
Next week is going to be busy for the IPO market as another company, ideaForge Technology, will also kick off its public issue on June 26, 2023. The drone manufacturing company has set a price band of ₹638-672 apiece for the public issue. The unmanned aircraft systems manufacturer is expected to raise around ₹567 crore as per the upper price band. The public offer comprises a fresh issue by the company and an offer for sale by the selling shareholders. The overall issue comprises fresh issuance of shares worth ₹240 crore, and an offer for sale of 48.69 lakh equity shares by selling shareholders. A total of 13,112 shares have been reserved for employees.
