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The ₹592-crore initial public offering of Cyient DLM, an arm of the Hyderabad-based listed entity Cyient Ltd, opens for public subscription today. The offer, which closes on June 30, has come out with a price band of ₹250-265.
Issue details
The company, which offers design-led manufacturing services, pegs the price band in the range of ₹250-265 a share. Bids can be made for a minimum of 56 equity shares and its multiples. About 75 per cent of the net offer is reserved for the QIB portion, while 15 per cent for the NII category, and 10 per cent for retail investors.
Besides, the company has reserved ₹15 crore worth of shares for its employees, who will get a discount of ₹15 a share to the final issue price.
Ahead of the IPO, the company has made a private placement of 40 lakh shares aggregating to ₹108 crore.
The company’s shares will be listed on the BSE and NSE.
Also read: Cyient integrates Finnish firm Citec
Anchor investors
As part of IPO process, the company, on Monday, raised received ₹259.64 crore from 20 anchor investors, including Societe Generale, BNP Paribas Arbitrage, Amansa Holdings, ICICI Prudential Mutual Fund, HDFC Mutual Fund, Aditya Birla Sun Life Trustee, DSP India, Tata Mutual Fund, LIC MF, Catamaran Ekam, and Kotak Mutual Fund.
The company has finalised the allocation of 97,98,113 equity shares to anchor investors at an issue price of ₹265 per share, the upper price band, it said in an exchange filing.
Utility of funds
The net proceeds from the issue will be used towards funding incremental working capital requirements (₹291 crore), capital expenditure, repayment of debt, and other general corporate purposes.
About Cyient DLM
Cyient DLM, a demerged entity of Cyient, provides contract manufacturing services, such as build-to-print (B2P) and build-to-specification (B2S) to its clients. Its solutions primarily comprise printed circuit board assembly (PCBA), cable harnesses, and box builds, which are used in critical safety systems, such as cockpits, in-flight systems, landing systems, and medical diagnostic equipment.
Cyient DLM has manufacturing facilities in Hyderabad, Bengaluru, and Mysore, with a total manufacturing area of 2.29 lakh sq ft. It is a manufacturing partner and systems supplier for global OEMs in the aerospace and defence, medical technology, and industrial sectors.
The company has an order book worth ₹2,400 crore, which will be executed in 24-30 months.
Ahead of the IPO, the company rejigged the management, appointing Krishna Bodanapu as Executive Vice-Chairman and Managing Director of Cyient Limited. Executive Director Karthikeyan Natarajan was appointed as CEO, while Anthony Montalbano was appointed as the CEO of Cyient DLM. The CEOs of Cyient Limited and Cyient DLM will report to Krishna Bodanapu.
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