- Date : 27/06/2023
- Read: 4 mins
Cyient DLM IPO, the second public issue to open for subscription this week, aims to raise ₹592 crore. Read more!
- Cyient DLM is launching its initial public offering (IPO) from June 27 to June 30.
- The IPO price range is set at ₹250 to ₹265 per share.
- Allotment by July 5, listing on BSE and NSE on July 10.
Cyient DLM is set to launch its initial public offering (IPO) today. As investors consider participating in this IPO, here are 10 key points to keep in mind:
1. IPO dates
The IPO will remain open for subscription from June 27 to June 30.
2. Price band
The offer price for the IPO is set within the range of ₹250 to ₹265 per share.
3. Size of the offering and allocation
Cyient DLM aims to raise ₹592 crore through a public issue of 22,339,623 equity shares, exclusively as a fresh issue.
Additionally, ₹15 crore worth of shares has been reserved for eligible employees at a discounted price of ₹15 per share. Before the IPO, the company raised ₹108 crore through a private placement.
4. Lot size and investor categories
The minimum lot size for investors is 56 equity shares, with subsequent lots in multiples of 56 shares. The offer is divided among qualified institutional buyers (75% of the offer size), high net-worth individuals (15%), and retail investors (10%).
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5. Objectives of the IPO
The IPO proceeds will be utilised for:
- Incremental working capital requirements - ₹291 crore
- Capital expenditure - ₹43.57 crore
- Debt repayment - ₹160.9 crore
- Inorganic growth through acquisitions - ₹ 70 crore
6. Company overview
Established in 1993, Cyient DLM is a supplier to global OEMs in industries such as aerospace, defence, medical technology, and industrial sectors. Noteworthy clients, including Honeywell International and Bharat Electronics, contributed 56.67% to the company's revenue in the previous fiscal year.
7. Financial metrics
Here are the details for FY 2022–23:
- Revenue: Increased by 15.5% to ₹832 crore
- Net profit: Decreased by 20.3% to ₹31.7 crore, with the margin falling significantly by 171 basis points
- Gross profit: Increased by 14.5% to ₹129.4 crore, but margin fell by 14 basis points
- EBITDA: Rose by 4.4% to ₹87.8 crore, but margin dropped 111 basis points
- Return on capital employed: Slipped to 13.48%
8. Promoters and management
Cyient holds a majority stake of 92.84% in Cyient DLM, while Amansa Investments possesses the remaining shares. The company is led by Rajendra Velagapudi as the Managing Director, with Ganesh Venkat Krishna Bodanapu as the Chairman.
9. Risks and concerns
Highlighted risks and concerns by HDFC securities and Choice Broking include:
- Heavy reliance on the top 10 clients for revenue
- Exposure to foreign exchange fluctuations, changes in laws and regulations, and economic slowdowns
- Lower capacity utilisation than other manufacturing companies
10. Important dates
The allotment of shares will be finalised by July 5, with shares being transferred to eligible investors' Demat accounts by July 7. Refunds will be issued to unsuccessful investors by July 6. The listing of equity shares on the BSE and NSE is scheduled for July 10.
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Disclaimer: This information should not be considered investment or legal advice and is only meant to provide general information. When concluding, you must seek independent advice separately.
