IPO listed on 10 Jul'23
Cyient DLM Ltd
Minimum Investment
₹ 14,840 / 56 shares
Grey market premium
₹ 110 (42% premium)
Issue price
₹ 265
Listing price
₹ 401
Listing day %
59%
Listing on
July 10, 2023
Subscribe for listing gains
- Although the company has demonstrated consistent growth in revenue, however, it is worth noting that other key financial indicators have shown a declining trend in FY23
- From a valuation point of view also, the IPO appears to be fully priced at a PE multiple of 66x FY23 EPS, which is at a premium to industry average
- The grey market premium (GMP) for the issue – a barometer of investor sentiment, indicates a premium listing. Thus, investors seeking listing gains, might consider subscribing to this issue
- However, investors who are interested in long-term capital appreciation should review the company's performance over the coming two quarters before deciding whether to include it in their long-term portfolio or not
About the company
Founded in
30 Jun'93
Managing director
Rajendra Velagapudi
- An integrated Electronic Manufacturing Services (EMS) and solutions provider with strong capabilities across the value chain and the entire life cycle of a product
- Core offerings include: (i) printed circuit board (PCB) assembly, (ii) cable harnesses, and (iii) box builds, which are used in safety-critical systems such as cockpits, inflight systems, landing systems and medical diagnostic equipment
- A qualified supplier to global original equipment manufacturers in the Aerospace and Defence, Medical Technology, and Industrial sectors
- Three operating facilities in Mysuru, Hyderabad and Bengaluru, with a total manufacturing area of 229,061 sq. ft.
STRENGTHS
- Consistent revenue growth: Cyient DLM has maintained a steady compounded annual growth of 15% in its revenue over the past two financial years
- Robust order book: As of March 2023, its order book totalled to Rs 2,432.6 crore, supplemented by a pipeline of potential forthcoming projects
- Marquee clientele: The company has long-standing associations as an integrated partner with multiple renowned clients, including Honeywell International Inc, Thales Global Services SAS, ABB, Bharat Electronics and Molbio Diagnostics. The average tenure of these relationships exceeds 11 years
RISK FACTORS
- Deteriorating financial metrics: Profit after Tax (PAT) Margin diminished to 3.81% in FY23 from 5.52% in FY22. Return on Capital Employed (RoCE) also witnessed a drop from 17.56% to 13.48%
- Revenue concentration: Cyient DLM’s business is heavily dependent on its key clients, with the top 10 customers contributing ~91% to its total operational revenue in FY23
- Vulnerability to currency fluctuation: The company is significantly exposed to currency volatility as it derives over 50% of its revenue from other countries
Issue details
Issue type
Mainstream
Issue size
₹ 592 crore
Fresh Issue
₹ 592 crore
OFS
₹ -
Price range
₹ 250 - 265
Lot size
56 shares
Issue Objective
Net proceeds of the issue (fresh issue) will be utilised towards:
- Repayment/ prepayment of borrowings availed by the company;
- Funding working capital/ capex requirements;
- Achieving inorganic growth through acquisitions; and
- General corporate purposes
Dates
Bidding open
27 Jun'23
Bidding close
30 Jun'23
Allotment date
5 Jul'23
Refund date
6 Jul'23
Listing
10 Jul'23
IPO Reservations
Qualified institutional buyers
>75%
Non-institutional investors
<15%
Retail individual investors
<10%
Read the Offer Document
© 2025 by Liquide Solutions Private Limited, SEBI Registered Research Analyst (Registration number - INH000009816)
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