The initial public offering of Cyient DLM, a subsidiary of Cyient, witnessed a strong response on the final day of bidding. The issue was subscribed 24.23 times at 2:15 pm on Day 3, June 30, 2023. The company has received bids for 30.47 crore shares against 2.23 crore shares on offer, according to data from the BSE.
The retail investor portion was subscribed to the most, 43 times, followed by the non-institutional investors' (NII) quota, which received bids 30 times the offer. Meanwhile, the part reserved for qualified institutional buyers (QIB) was subscribed to 17 times whereas the employee part was subscribed to 2.26 times.
The retail investors' portion received bids for 9.38 crore shares against 21.77 lakh shares on offer for this segment, whereas the NII portion received bids for 9.8 crore shares against 32.66 lakh on offer for this segment. Meanwhile, the QIB portion received bids for 11.14 crore shares against 65.32 lakh on offer for this segment. Finally, the employee portion received bids for 13.6 lakh shares versus 6.02 lakh shares offered.
GMP: The company's shares witnessed a strong premium of ₹115 in the grey market on Friday, June 30, indicating a strong demand for the IPO. This has risen from ₹110 since June 21.
However, one must note that grey market premium is only an indicator of how the company's shares are performing in the unlisted market and can change quickly.
The ₹592 crore-IPO of Cyient DLM opened for subscription on Tuesday, June 27 and will close today. The company has fixed a price band of ₹250-265 for the IPO.
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.
The issue is a full fresh issue of 2.23 crore shares. Post the IPO, Cyient DLM promoter Cyient Ltd will hold a 66.68 percent stake in the firm. The IPO has a lot size of 56 shares and retail investors can bid up to 13 lots.
Most experts have a ‘subscribe’ rating for the issue on the back of attractive valuations, niche business sector, strong promoter background and robust growth potential.
The date of allotment for the IPO is expected to be 5 July, following which, the issue is likely to list on the bourses on 10 July.