Cyient DLM IPO: Price Band Set at Rs 250-265 for June 27 Listing
Cyient DLM Ltd, a subsidiary of Cyient Ltd, has revealed a price range of Rs 250-265 per share for its upcoming initial public offering (IPO), which will be available for subscription starting from June 27.
Investors will have the opportunity to participate in the IPO until June 30, while anchor investors can bid for the issue on June 26. On July 5, the allotment of shares will be finalized, followed by refunds on July 6. Cyient DLM’s shares are expected to be listed on exchanges on July 10. It’s worth noting that Cyient Ltd holds a majority stake of over 92.84 percent in Cyient DLM.
The IPO primarily consists of a fresh issue of shares, totaling Rs 592 crore. With the upper price band, the company’s valuation is estimated at Rs 2,000 crore. JM Financials and Axis Capital are serving as the lead managers for the IPO.
The funds raised from this offering will be allocated towards various purposes, including working capital requirements, capital expenditures, debt repayment, and facilitating inorganic growth through strategic acquisitions.
As of March 2023, Cyient DLM’s outstanding borrowings amounted to Rs 314.47 crore. Furthermore, the company’s order book stood at Rs 2,432.55 crore as of the same period.
Cyient DLM is a well-established provider of integrated Electronic Manufacturing Services (EMS) and comprehensive solutions. It offers a wide range of capabilities throughout the value chain and product life cycle.
The Electronic Manufacturing Services provided by Cyient DLM are divided into two main categories: Build to Print (B2P) and Build to Specification (B2S) services. B2P solutions involve clients providing the product design, while Cyient DLM delivers agile and flexible manufacturing services tailored to their specific requirements.
The company’s core solutions encompass key components such as printed circuit board (PCB) assembly (PCBA), cable harnesses, and box builds. These components are vital for ensuring the safety of critical systems like cockpits, inflight systems, landing systems, and medical diagnostic equipment.
Cyient DLM operates manufacturing facilities in Mysuru, Hyderabad, and Bengaluru. Combined, these facilities cover a total manufacturing area of 229,061 sq. ft. The Mysuru facility, spanning 65,929 sq. ft., primarily focuses on manufacturing PCBA, cable harnesses, and box builds for clients in the aerospace and defense industries.
In Hyderabad, the company’s manufacturing facility, located within a special economic zone, occupies 150,932 sq. ft. Here, PCBA, cable harnesses, and box builds are produced for clients in non-aerospace and non-defense industries, including medical technology and healthcare.
During FY23, Cyient DLM reported a revenue of Rs 832.03 crore, marking an increase from Rs 720.53 crore the previous year. The net profit for the fiscal year amounted to Rs 31.73 crore, compared to Rs 39.80 crore in the previous year.
About Cyient DLM:
Cyient is a globally recognized company that excels in providing engineering and technology solutions. We work closely with our customers at every stage of their value chain, supporting them in designing, constructing, operating, and maintaining their products and services. With our expertise, customers can cultivate and maintain their leading positions in their industries and establish respected brands in the market. Our customers rely on Cyient’s extensive knowledge in engineering, manufacturing, and digital technology to deliver and uphold innovative solutions that meet the highest standards of safety, reliability, and performance.
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