Cyient DLM, a subsidiary of renowned IT firm Cyient, is set to launch its IPO on June 27, with subscription open until June 30. However, the IPO will be exclusively available to anchor investors on June 26.
The company has determined a price band of Rs 250-265 per share for the offering. Notably, the size of the IPO has been reduced from Rs 740 crore to Rs 592 crore.
This IPO comprises a fresh issue, allowing the company to utilize the entire proceeds. Cyient Ltd currently holds a stake of over 92.84% in Cyient DLM.
IPO Details:
Cyient DLM has initiated a pre-IPO placement of 40.75 lakh equity shares, now reduced to Rs 108 crore from the earlier estimation of Rs 140 crore.
The IPO has reserved 75% of the issue for Qualified Institutional Buyers (QIBs), with 15% allocated to non-institutional buyers and 10% for retail investors.
The final allotment of shares for the Cyient DLM IPO is scheduled for July 5. Refunds for unsuccessful investors will commence from July 6. The shares of Cyient DLM are expected to be listed on the exchanges on July 10.
Utilization of Funds:
With a valuation of approximately Rs 2000 crore based on the upper price band, the net proceeds from the IPO will be utilized for working capital requirements.
Additionally, the funds will be allocated towards capital expenditure, debt repayment, and general corporate purposes.
Axis Capital serves as the book-running lead manager for the JM Financial IPO, while Kefin Technologies has been appointed as the registrar to the issue, as stated in the red-herring prospectus.
About Cyient DLM:
Cyient DLM specializes in providing end-to-end (E2E) manufacturing, assembly, repair capabilities, and re-engineering services.
The company’s primary focus lies in sectors such as aerospace, defense, metallurgy, energy, railways, and other industries.
Last year, Anthony Montalbano was appointed as the CEO of the company. In the March 2023 quarter, Cyient DLM witnessed a 15% growth in revenue from operations, amounting to Rs 832 crore.
During the same period, the company’s profit increased by 4% to Rs 31.7 crore.
