Cyient DLM IPO to Open for Subscription on June 27. Check Details
Cyient DLM IPO
The IPO of Cyient DLM is generating significant interest as it offers investors an opportunity to participate in the growth potential of the subsidiary.
Cyient DLM specializes in providing data lifecycle management solutions, leveraging advanced technologies such as artificial intelligence, machine learning, and data analytics.
With the revised size of the IPO at Rs 592 crore, the company aims to utilize the funds raised to fuel its expansion plans, enhance technological capabilities, invest in research and development, and support working capital requirements.
The IPO proceeds will enable Cyient DLM to capitalize on market opportunities, strengthen its market position, and drive future growth.
Investors who wish to participate in the IPO can do so by placing their bids between June 27 and June 30. The price band of Rs 250-265 per share provides a range within which investors can submit their bids.
The final price at which the shares will be allotted will be determined through a bidding process, taking into consideration the demand and supply dynamics.
Anchor investors, who are typically institutional investors with a significant appetite for shares, will have an exclusive opportunity to participate in the IPO on June 26.
This early access allows anchor investors to secure their allocation before the public subscription opens.
The strong ownership of Cyient Ltd, with its stake of over 92.84 percent in Cyient DLM, showcases the commitment and confidence of the parent company in the prospects of its subsidiary.
Cyient Ltd’s substantial ownership also demonstrates the alignment of interests between the parent company and Cyient DLM, further bolstering investor confidence in the IPO.
Overall, the IPO of Cyient DLM presents an opportunity for investors to be part of a technology-driven subsidiary with growth potential in the data lifecycle management sector.
Cyient DLM IPO Related Details
Cyient DLM has initiated a pre-IPO placement of 40.75 lakh equity shares. However, the value of this pre-IPO placement has been reduced from the initial target of Rs 140 crore to Rs 108 crore.
This placement allows the company to secure investments from select investors before the IPO opens for public subscription.
For the IPO itself, Cyient DLM has reserved 75 percent of the issue for Qualified Institutional Buyers (QIBs), which typically includes banks, financial institutions, and mutual funds.
This reserved portion provides an opportunity for institutional investors to participate in the IPO and potentially secure a significant allocation.
Furthermore, 15 percent of the issue has been reserved for non-institutional buyers, which typically includes high-net-worth individuals (HNIs) and corporate entities.
This allocation caters to investors who fall outside the category of Qualified Institutional Buyers.
The remaining 10 percent of the IPO is reserved for retail investors, allowing individuals to participate in the IPO with a smaller investment size.
This reserved portion is intended to ensure wider participation and retail investor involvement in the IPO.
The allotment of shares to successful applicants will be finalized on July 5. Simultaneously, the refund process for investors who were unsuccessful in the allotment will commence from July 6. This ensures a transparent and efficient process for the IPO applicants.
Upon completion of the IPO process, the shares of Cyient DLM are expected to be listed on the stock exchanges on July 10. This listing will provide liquidity to investors and allow the shares to be traded on the open market.
Overall, these IPO-related details highlight the specific allocations for different categories of investors and provide clarity on the timeline for allotment, refunds, and listing of Cyient DLM shares.
Where Will the Fund Be Used
The funds raised from the IPO of Cyient DLM will serve various purposes, as outlined in the red-herring prospectus. Here’s an expansion on the utilization of funds:
1. Working Capital Requirements: A portion of the net proceeds will be allocated towards fulfilling the company’s working capital needs.
This includes covering day-to-day operational expenses, managing inventory, and maintaining liquidity for smooth business operations.
2. Capital Expenditure: Cyient DLM plans to utilize a portion of the funds for capital expenditure.
This may involve investments in infrastructure, technology upgrades, research and development, and expanding production capabilities. The aim is to enhance the company’s overall operational efficiency and support future growth initiatives.
3. Debt Repayment: Some of the proceeds will be allocated towards the repayment of existing debts or loans.
Reducing debt obligations can improve the company’s financial position, lower interest expenses, and provide more flexibility for future financial planning and investment.
4. General Corporate Purposes: The remaining portion of the funds will be utilized for general corporate purposes, which may include strategic investments, acquisitions, partnerships, marketing and branding activities, and other initiatives aimed at strengthening the company’s market position and driving long-term growth.
The valuation of the company at Rs 2000 crore, based on the upper price band, provides a perspective on the market perception of Cyient DLM’s worth and growth potential.
In terms of the IPO management, Axis Capital has been appointed as the book-running lead manager for the IPO by Cyient DLM.
The book-running lead manager plays a crucial role in managing the IPO process, including pricing, marketing, and coordinating with various stakeholders.
Additionally, Kefin Technologies has been appointed as the registrar to the issue, responsible for managing the IPO application process, share allotment, and other related administrative tasks.
These arrangements ensure that the IPO is conducted in compliance with regulatory requirements and industry best practices, providing transparency and efficiency throughout the IPO process.
About the Company
Cyient DLM is a company that specializes in providing comprehensive end-to-end (E2E) manufacturing, assembly, repair, and re-engineering services.
The company focuses on multiple sectors, including aerospace, defense, metallurgical, energy, railways, and other industries.
With a wide range of capabilities, Cyient DLM caters to the specific requirements of its clients within these sectors.
This includes manufacturing and assembly of complex components, equipment, and systems, as well as providing repair and maintenance services to ensure the longevity and optimal performance of the products.
In terms of leadership, the company appointed Anthony Montalbano as its CEO. As the CEO, Montalbano brings his expertise and strategic vision to guide the company’s operations and growth initiatives.
Cyient DLM has demonstrated positive financial performance, with notable growth in revenue from operations.
In the March 2023 quarter, the company reported a 15 percent increase in revenue, reaching Rs 832 crore. This growth indicates the company’s ability to capture market opportunities and deliver value to its clients.
Furthermore, Cyient DLM achieved a 4 percent increase in profit during the same period, amounting to Rs 31.7 crore.
This growth in profitability demonstrates the company’s efficient management of costs and optimization of operational efficiency.
By focusing on sectors such as aerospace, defense, metallurgical, energy, railways, and other industries, Cyient DLM positions itself as a trusted partner for clients seeking high-quality manufacturing, assembly, repair, and re-engineering services.
The company’s financial performance reflects its ability to deliver value and maintain a competitive edge in the market.
