26-Jun-2023
2 mins read
The forthcoming Initial Public Offering (IPO) of Cyient DLM, a Cyient subsidiary, is set to open for subscriptions from June 27 and will remain open until June 30. The firm has set the per-share price range between Rs 250 and Rs 265 for this issue. The anchor book, set to open on June 26, will remain open for one day only. The entirely new Cyient DLM IPO is valued at Rs 592 crore, issuing 2.23 crore shares, and the overall company’s valuation stands at Rs 2,000 crore at the top end of the price bracket. The IPO has a lot size of 56 shares, and retail investors can bid for up to 13 lots. The minimum required investment for retail investors is Rs 14,840, capping at Rs 1,92,920.
Cyient DLM Limited Product Portfolio
B2P) and Build to Specification (B2S). In the case of B2P services, the clients are required to provide the design for the product, upon which the company brings to bear its agile and flexible manufacturing capabilities. On the other hand, B2S services demand the company to develop and create the product based on the client’s provided specifications. The principal solutions put forward by Cyient DLM include the assembly of Printed Circuit Boards (PCB) and the construction of cable harnesses, both of which form the backbone of their contribution to the electronic manufacturing sector.
The Objectives of Cyient DLM Limited IPO
Cyient DLM Limited plans to direct the net proceeds from this issuance to support several key objectives. These include supplementing the company’s working capital, funding its capital expenditures, and repaying or prepaying some of its outstanding borrowings, either partially or in full. Additionally, a portion of the funds will be reserved to facilitate inorganic growth through strategic acquisitions. Lastly, a part of the proceeds will be allocated for general corporate requirements, ensuring smooth operations across all aspects of the business.
About the Cyient DLM Limited IPO
As mentioned, the price range for this IPO has been set between Rs 250 and Rs 265 per share. Unlike some IPOs, this one will have no Offer for Sale (OFS) segment. The new shares to be issued under this IPO total 2,23,39,623. At the top price of Rs 265 per share, this fresh issue is valued at Rs 592 crore. Consequently, the total value of the IPO also stands at Rs 592 crore, given there’s no OFS section.
Cyient DLM was initially set up by five professionals who sold their stakes to Cyient Ltd and now serve on the board as Cyient’s nominees. Post-IPO, this holding will reduce to 66.68%. The proceeds from the new issue of this IPO will go towards meeting working capital requirements, funding capital expenditures, repaying loans, and supporting inorganic growth.
In terms of the IPO offer structure, 75% of the net offer is earmarked for Qualified Institutional Buyers (QIBs), with a mere 10% set aside for retail investors. The remaining 15% is allocated to high-net-worth individuals (HNI) or non-institutional investors (NIIs).
Financial Performance of Cyient DLM Limited (In Crore)
| Period Ended | Total Assets | Total Revenue | Profit After Tax | Net Worth | Reserves and Surplus | Total Borrowing |
| 31-Mar-20 | 593.49 | 464.91 | -6.7 | 25.71 | 24.34 | 261.37 |
| 31-Mar-21 | 645 | 636.91 | 11.81 | 37.65 | 36.29 | 233.77 |
| 31-Mar-22 | 776.91 | 728.48 | 39.80 | 77.11 | 75.75 | 293.19 |
| 31-Mar-23 | 1,104.72 | 838.34 | 31.73 | 197.87 | 145.01 | 314.47 |
Important Dates for Cyient DLM Limited IPO
| IPO Date | June 27, 2023 to June 30, 2023 |
| Listing Date | Monday, 10 July 2023 |
| Face Value | Rs 10 per share |
| Price | Rs 250 to Rs 265 per share |
| Lot Size | 56 Shares |
| Total Issue Size | 22,339,623 shares (aggregating up to Rs 592.00 Crore) |
| Fresh Issue | 22,339,623 shares (aggregating up to Rs 592.00 Crore) |
| Employee Discount | Rs 15 per share |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
| Shareholding pre issue | 56,941,471 |
| Shareholding post issue | 79,281,094 |
Timetable for Cyient DLM Limited IPO
| Event | Tentative Date |
| Opening Date | Tuesday, 27 June 2023 |
| Closing Date | Friday, 30 June 2023 |
| Basis of Allotment | Wednesday, 5 July 2023 |
| Initiation of Refunds | Thursday, 6 July 2023 |
| Credit of Shares to Demat | Friday, 7 July 2023 |
| Listing Date | Monday, 10 July 2023 |
| Cut-off time for UPI mandate confirmation | 5 PM on June 30, 2023 |
Cyient DLM IPO Lead Manager(s)
⦁ Axis Capital Limited
⦁ Jm Financial Limited
How to Apply
Wait for the public issue to open for subscription, then click on this link to apply for the Cyient DLM Limited IPO with Bigul https://ipo.bonanzaonline.com/.
How to Check Allotment Status
The registrar for Cyient DLM Limited IPO is Kfin Technologies Limited. To check your allotment status, please click on this link https://karisma.kfintech.com/
FAQs
1. When will the Cyient DLM Limited IPO open for subscriptions?
The Cyient DLM Limited IPO will open for subscriptions on June 27, 2023, and remain open until June 30, 2023.
2. What is the price range for the Cyient DLM Limited IPO?
This IPO’s per share price range has been set between Rs 250 and Rs 265.
3. How can I apply for the Cyient DLM Limited IPO?
The public issue will open for subscription on June 27, 2023. You can apply for the Cyient DLM Limited IPO through this link: https://ipo.bonanzaonline.com/.
4. What will be the allotment date for the Cyient DLM Limited IPO?
The tentative date for the basis of allotment for the Cyient DLM Limited IPO is July 5, 2023.
5. When will the shares be credited to my Demat account?
The Cyient DLM Limited IPO shares are expected to be credited to Demat accounts on July 7, 2023.
6. What is the listing date for the Cyient DLM Limited IPO?
The listing date for the Cyient DLM Limited IPO is July 10, 2023.
7. How can I check the allotment status for the Cyient DLM Limited IPO?
The registrar for the Cyient DLM Limited IPO is Kfin Technologies Limited. You can check your allotment status on their website at https://karisma.kfintech.com/.
8. What is the objective of the Cyient DLM Limited IPO?
The net proceeds from this issuance will support several key objectives, including supplementing the company’s working capital, funding capital expenditures, repaying or prepaying some of its borrowings, achieving inorganic growth through acquisitions, and general corporate purposes.
9. Who are the lead managers for the Cyient DLM Limited IPO?
The lead managers for the Cyient DLM IPO are Axis Capital Limited and JM Financial Limited.