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Cyient DLM plans to raise Rs 592 crore through initial public offering (IPO). The subscription for the IPO opens on June 27 and closes on June 30, 2023. The price band is fixed at Rs 250–265 per share.
The IPO comprises of only fresh issue of about 2.23 crore shares aggregating up to Rs 592 crore. The face value is fixed at Rs 10 apiece. Employees of the company will get a discount of Rs 15 per share to the final issue price. The size of one lot is 56 shares.
Company Summary
Cyient DLM Limited is an integrated electronics manufacturing services (EMS) company and a solutions provider with a focus on the entire life cycle of a product that includes design, build and maintain.
The company manufactures printed circuit board (“PCB”), printed circuit board assembly (“PCBA”), cable harnesses, and box builds which are used in safety critical systems such as cockpits, inflight systems, landing systems, and medical diagnostic equipment.
The company’s electronic manufacturing services are provided as Build to Print (“B2P”) and Build to Specification (“B2S”) services to their customers.
The company has more than two decades of experience in developing high mix, low-to-medium volume highly complex systems, and a qualified supplier to global OEMs in the aerospace and defence, medical technology and industrial sectors.
The company enjoys long-term relationships as an integrated partner to multiple marquee customers such as Honeywell International, Thales Global Services S.A.S, ABB Inc, Bharat Electronics Limited and Molbio Diagnostics Private Limited, having an average relationship of over 11 years as on March 31, 2023.
The company has three manufacturing facilities spread across Mysuru, Hyderabad, and Bengaluru, with a total manufacturing area of 2,29,061 sq. ft.
Company Strengths
- The company offers integrated engineering solutions with capabilities across the product value chain.
- One of the few electronic manufacturing services companies in India offering electronics solutions for safety and mission-critical applications in highly regulated industries.
- Strong and industry leading order book and well-established relationship with marquee customers.
- The company has a strong manufacturing infrastructure, stringent quality checks, diverse in-house capabilities and robust supply chain.
- Long history of industry expertise, experienced board and senior management team.
Company Financials
Period Ended | FY23 | FY22 | FY21 |
Total Assets (Rs in crore) | 1,104.72 | 776.91 | 645.03 |
Total Revenue (Rs in crore) | 838.34 | 728.48 | 636.91 |
EBITDA (Rs in crore) | 87.78 | 84.04 | 45.94 |
EBITDA Margin | 10.55% | 11.66% | 7.32% |
Profit After Tax (Rs in crore) | 31.73 | 39.8 | 11.81 |
PAT Margin | 3.81% | 5.52% | 1.88% |
Free Cash Flow (Rs in crore) | 44.49 | 40.83 | 7.54 |
Return on Capital Employed | 13.48% | 17.56% | 11.48% |
Return on Equity | 23% | 69% | 37% |
Purpose of the IPO
The net proceeds from fresh issue of shares will be utilized by the company for the following purposes:
- Funding incremental working capital requirements aggregating to Rs 291.09 crore.
- Funding capital expenditure totalling Rs 43.57 crore.
- Repayment or prepayment, in part or full, of certain of their borrowings aggregating to Rs 160.91 crore.
- Achieve inorganic growth through acquisition amounting to Rs 70 crore.
- General corporate purposes.
Company Promoters
Cyient Limited is the promoter of the company.
IPO Details
IPO Subscription Opening Date | June 27, 2023 |
IPO Subscription Closing Date | June 30, 2023 |
Face Value | Rs 10 per share |
Price Band | Rs 250 to Rs 265 per share |
Lot Size | 56 shares |
Total Issue Size | 2,23,39,623 shares aggregating up to Rs 592 crore |
Fresh Issue | 22,339,623 shares aggregating up to Rs 592 crore |
Issue Type | Book Built Issue IPO |
Listing At | BSE, NSE |
IPO Lot Size
Event | Tentative Date |
Basis of Allotment | July 5, 2023 |
Initiation of Refunds | July 6, 2023 |
Credit of Shares to Demat Account | July 7, 2023 |
Listing Date | July 10, 2023 |
Allotment Details
Application | Lots | Shares | Amount |
Retail (Minimum) | 1 | 56 | Rs 14,840 |
Retail (Maximum) | 13 | 728 | Rs 1,92,920 |
Small HNI (Minimum) | 14 | 784 | Rs 2,07,760 |
Small HNI (Maximum) | 67 | 3,752 | Rs 9,94,280 |
Large HNI (Minimum) | 68 | 3,808 | Rs 10,09,120 |
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