Cyient DLM IPO Oversubscribed on Debut, Retail Portion 9.82 times
Cyient DLM, a leading electronic manufacturing services and solutions provider, experienced a remarkable response from investors on its first day of bidding for the initial public offering (IPO). As of June 27, the IPO witnessed bids for 3.53 crore equity shares, surpassing the offer size of 1.33 crore shares and resulting in a subscription rate of 2.65 times.
In a striking display of confidence, retail investors eagerly bought 9.82 times the allotted quota within the initial hours of bidding. Additionally, the portion reserved for employees was booked at 29 percent, signifying their strong interest in the company’s future prospects.
Cyient DLM has allocated shares worth Rs 15 crore for its employees, offering them a discounted price of Rs 15 below the final issue price.
The IPO also attracted substantial interest from high net worth individuals, who placed bids for 3.57 times the reserved portion. Qualified institutional buyers, on the other hand, subscribed to 3 percent of the shares set aside for them.
The offer distribution consists of 75 percent allocated to qualified institutional buyers, 15 percent to high net worth individuals (non-institutional investors), and the remaining 10 percent to retail investors.
The objective of the public issue is to raise Rs 592 crore through the sale of 2.23 crore equity shares. This represents a fresh issue of shares, meaning that all the funds raised, excluding issue expenses, will be utilized by the company.
Cyient DLM secured Rs 259.64 crore from the anchor book, which forms part of the qualified institutional buyers’ portion, on June 26, one day prior to the IPO debut. Consequently, the offer size was reduced from 2.23 crore equity shares to 1.33 crore shares.
The price band for the IPO, scheduled to close on June 30, has been set at Rs 250-265 per share.
Before submitting the red herring prospectus, Cyient’s subsidiary, Cyient DLM, raised Rs 108 crore through a pre-IPO placement of 40.75 lakh equity shares. As a result, the total size of the fresh issue has been adjusted to Rs 592 crore from the initial Rs 700 crore.
Cyient DLM specializes in integrated electronics manufacturing services, offering printed circuit board assembly, cable harnesses, and box builds to clients under build-to-print (B2P) or build-to-specification (B2S) arrangements.
The company intends to utilize the funds raised from the IPO for various purposes, including supporting incremental working capital requirements, capital expenditure, debt repayment, pursuing inorganic growth opportunities, and fulfilling general corporate needs.
About Cyient DLM:
Cyient DLM Limited, founded in 1993, is a specialized provider of Electronic Manufacturing Services (EMS) and solutions. The company offers a wide range of EMS options, including Build Print (B2P) and Build to Specification (B2S) solutions. In the B2P services, clients provide product design, and Cyient DLM ensures flexible and agile manufacturing services. On the other hand, B2S services involve designing the product based on client specifications and managing the entire manufacturing process.
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