Shares of Cyient DLM made a robust debut on the bourses today. On NSE, the stock listed at ₹403, a premium of 52 percent or ₹138 versus its issue price of ₹256. On BSE as well, the stock listed at ₹401, a premium of 51.3 percent or ₹136.
The initial public offering (IPO) saw a strong response from investors and was subscribed 71.35 times in the 3 days of bidding (June 27-30). The issue received bids for 89.73 crore shares as compared to 2.23 crore shares on the offer.
The portion reserved for QIBs saw the most subscriptions, 95.87 times, followed by the retail investor quota which saw bids 52.17 times. Meanwhile, the NII category witnessed subscription 47.75 times and the employees part was subscribed 2.60 times.
The ₹592 crore IPO of Cyient DLM, a subsidiary of Cyient, was open for subscription between June 27 and June 30 at a price band of ₹250-265. The issue was a full fresh issue of 2.23 crore shares. Post the IPO, Cyient DLM promoter Cyient will hold a 66.68 percent stake in the firm.
Net proceeds from the fresh issue, excluding issue expenses, will be utilised by the company for various objectives, including working capital requirements, capital expenditure, repaying debts, and inorganic growth.
Most experts had a ‘subscribe’ rating for the issue on the back of attractive valuations, niche business sector, strong promoter background, and robust growth potential.
Incorporated in 1993, Cyient DLM is an integrated electronic manufacturing service (EMS) and solutions provider with a focus on the entire life cycle of a product, including design, build, and maintenance. It has over 22 years of experience in developing high-mix, low-to-medium volume highly complex systems. It is a qualified supplier to global OEMs in the aerospace and defence, medical technology and industrial sectors.
The company enjoys long-term relationships with marquee customers such as Honeywell, Thales Global Services, ABB, Bharat Electronics and Molbio Diagnostics, having had an average relationship of over 11 years.