According to production and sales, Cyient DLM is the largest producer of zinc oxide in India using the French process, which is the industry standard production method for producing zinc oxide and is used by all the major producers in the Americas, Europe, and Asia. (Source: CARE Report). Cyient DLM IPO will hit the stock market in April 2023.
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About Cyient DLM
One of the top integrated providers of electronic manufacturing services and solutions, they have excellent capabilities throughout the full value chain and product life cycle.
They are a qualified supplier to international OEMs in the aerospace and defence, medical technology, and industrial sectors with more than 20 years of experience in producing high mix, low-to-medium volume, very complicated systems.
They are the leading provider of EMS services to the aerospace and defence industry in India by value and one of the few EMS businesses in India serving highly regulated industries (Source: Frost & Sullivan Report).
The EMS market is experiencing significant headwinds. In 2022, the India EMS market will account for 2.2% (or USD 20 billion) of the global EMS market.
Solutions
Cyient DLM limited make use of the design capabilities of their Promoter, Cyient Limited, a premier engineering services provider with over three decades of domain expertise in providing engineering and design solutions worldwide with a focus on different industries.
Their clients receive Build to Print and Build to Specification services from their Electronic Manufacturing Services. Cyient DLM’s B2P solutions entail their client creating the product design, for which they supply agile and flexible manufacturing services.
Their B2S services entail utilising their Promoter’s design talents to create and manufacture the required product based on the specifications provided by the customer. Cyient DLM limites’s primary solutions include printed circuit board assembly, cable harnesses, and box builds for use in safety sensitive systems.
Clientle
Cyient DLM’s clients come from a variety of high-entry-barrier businesses with exacting quality and certification standards.
As an integrated partner to numerous prestigious clients like Honeywell International Inc., Thales Global Services S.A.S., ABB Inc., Bharat Electronics Limited, and Molbio Diagnostics Private Limited, they actually appreciate long term relationships.
As of September 30, 2022, these clients had an average relationship length of more than 11 years with them. They function as an integrated service provider for their customers, supporting their needs for manufacturing and after-market services as well as design by utilising their Promoter’s design team.
They offer services throughout the product life cycle for its clients. They value long-term partnerships with a high level of client loyalty and repeat business.
Cyient DLM IPO
Cyient DLM Limited, headquartered in Hyderabad has submitted Draft Red Herring Prospectus(DRHP) to Securities and Exchange Board of India(SEBI) for initial public offering (IPO) of INR 740 Crore on 09 January 2023.
The offer includes a fresh issue of INR 740 Crore and there is no offer for sale (OFS) by the promoters mentioned in the DRHP. They are looking for any Pre-IPO placement of 148 crore in this issue.
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- Initial Public Offering
They are now waiting for approval from Securities and Exchange Board of India(SEBI) to float the initial public offering (IPO) in the market.
Financials Trends
| Particulars | For the year/period ended ( in Cr.) | ||||
|---|---|---|---|---|---|
| 30-Sep-22 | 31-Mar-22 | 31-Mar-21 | 31-Mar-20 | ||
| Total Assets | 1,000.27 | 776.91 | 645.03 | 593.49 | |
| Total Revenue | 348.08 | 728.48 | 636.91 | 464.91 | |
| Profit After Tax | 13.42 | 39.80 | 11.81 | (6.70) | |
Basic and Diluted Earnings Per Share
| Financial Period | Basic EPS (in INR) | Diluted EPS (in INR) | Weight |
| Financial Year 2020 | (2.72) | (2.72) | 3 |
| Financial Year 2021 | 4.80 | 4.80 | 2 |
| Financial Year 2022 | 16.17 | 16.17 | 1 |
| Weighted Average | 9.23 | 9.23 | |
| 30 June 2022 | 4.61 | 4.61 |
Objects of the Issue
- Repayment/prepayment of debt.
- General corporate objectives and organic growth.
Basis of the offer
They feel that the following business strengths enable them to compete successfully in the industry, and that these factors will be used to calculate the Offer Price:
- Offering comprehensive engineering solutions with strong skills throughout the product value chain.
- Due to their technical proficiency, capacity in safety-critical electronics in highly regulated industries, and customer engagement, we have significant entry barriers for our competitors.
- Strong and market-leading order book from marquee clients, with whom we value long-term partnerships as their preferred partner.
- They are able to provide their customers high quality, integrated end-to-end solutions because of their world-class production infrastructure, strict quality control, & various internal skills.
- Cyient Limited, the promoter, has a solid lineage a seasoned board & a top management team.
Cyient DLM Peer Comparison
| S. No. | Face Value | Company Name | PE |
| 1 | 10 | Syrma SGS Technology Ltd | 52.30 |
| 2 | 10 | Kaynes Technology India Limited | 84.58 |
| 3 | 10 | DCX Systems Limited | 23.14 |
- All financial data for listed industry peers is on a standalone/consolidated basis and comes from the audited consolidated/standalone financial statements of the respective firms for the year ending March 31, 2022, which can be found on the Stock Exchanges’ websites.
- The P/E ratio is calculated by dividing the closing market price of equity shares on the BSE on jaunary 06, 2023 by the diluted EPS derived from the peer group company’s annual report for the year ended March 31, 2022.
Cyient DLM IPO Details
| IPO Opening Date | April 2023 |
| IPO Closing Date | April 2023 |
| Issue Type | Book Building |
| Face Value | 10 per share |
| IPO Price | 0 to 0 per equity share |
| Market Lot | – |
| Min Amount | – |
| Listing At | BSE, NSE |
| Issue Size | 740 Crores |
| Fresh Issue | 740 Crore |
| Offer for Sale | 0 |
Cyient DLM IPO Date
Cyient DLM Limited IPO opening date is April 2023, and the closing date is April 2023. The Cyient DLM issue may list in April 2023.
| IPO Opening Date | April 2023 |
| IPO Closing Date | April 2023 |
| Basis of Allotment Date | April 2023 |
| Initiation of Refunds | April 2023 |
| Credit of Shares to Demat Account | April 2023 |
| IPO Listing Date | April 2023 |
Basis of Allotment
| Type | % of Offer | Basis of Allotment |
|---|---|---|
| Qualified Institutional Buyer | 75 |
Roughly equivalent
|
| Non Institutional Investor | 15 |
Roughly equivalent
|
| Retail | 10 | Minimum 1 lot based on availability |
Cyient DLM IPO Status
Allotment of equity stocks subject to the Fresh Issue and transfer of the Promoter Selling Shareholders’ OFS Stocks to the winning Bidders subject to the Offer for Sale. Nevertheless, the status of the allotment has yet to be revealed.
Here, you can find the Allotment Status of Cyient DLM IPO.
Cyient DLM IPO GMP
Cyient DLM Limited IPO Grey Market Premium is 0. You can check out GMP of Other IPOs on below Links:
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Check Out the GMP of all Other IPOs
Cyient DLM Limited IPO Review
Cyient DLM Limited IPO review will depend on the price band which will be announced after SEBI approval. Whenever it will be announced we will update you regarding review of Cyient DLM IPO is good or bad.
Cyient DLM IPO Risk
- The selling of their products to a few clients is essential to their operation. A negative impact on their firm could result from losing any of their important clients or from losing sales to those clients.
- Their order book might not be an accurate predictor of their future growth rate or the number of new business orders they will get. They might also not make the whole amount of money from their order book that was anticipated.
- They are incredibly reliant on their Promoter, management team & the loss of any important team members could have a negative impact on how well their firm performs
- Any inability to compete successfully in the fiercely competitive EMS market could materially harm their company.
Other Threats
- Any decrease in their company’s investment value, both current and future, could have a materially negative impact on their operations, financial situation, and cash flows.
- There might be issues with the items we create through the design team of their Promoter, production, or service, which might lead to liability lawsuits against them, a decline in demand for their services, and reputational harm.
- Due to the nature of their operations, they are exposed to a variety of hazards that could significantly harm company operations, financtional situation, and cash flow.
- They have not finalised any agreements to use specific amounts of the Net Proceeds of the Issue; their funding needs and projected deployment of the Net Proceeds are based on management estimations.
Cyient DLM IPO Brokerage views
Once the dates will be announced we will update the views of different brokerage firms regarding this IPO. Here is the views of different stock brokers regarding this Cyient DLM IPO:
- Yes Securities : Not Updated
- Choice Brokering: Not Updated
- Axis Securities: Not Updated
- IIFL Securities: Not Updated
- Trade swift: Not Updated
- Anand Rathi : Not Updated
- ICICI Securities: Not Updated
Cyient DLM Limited IPO Subscription Status
| Date | Day | QIB | NII | Retail | Employees | Total Subscription |
| April 2023 | 1 | |||||
| April 2023 | 2 | |||||
| April 2023 | 3 |
Cyient DLM Limited Management
A robust, experienced management team with an average tenure of more than 20 years complements their diverse board, which has an average tenure of over seven years in the EMS sector.
Rajendra Velagapudi, their managing director, Anthony Montalbano, their chief executive officer & business head, Ram Dornala, their chief operating officer, and Shrinivas Appaji Kulkarni, their chief financial officer, make up their management team.
They think their skilled & committed management team gives them the ability to seize market opportunities, create & carry out business strategies, control consumer expectations, and proactively respond to changes in the market environment.
Their NPI skills are devoted to aiding customers with a smooth product introduction & assisting them in reducing the time to market for a new product.
Production Plants
Three sites, located in Mysuru, Hyderabad & Bengaluru, and spanning two Indian states, make up their production infrastructure. These facilities have a combined manufacturing area of 229,061 square feet.
Their Mysuru facility, which has a production area of 65,929 square feet, specialises in producing PCBA, cable harnesses, and box builds for customers in the aerospace and defence sectors.
Their Hyderabad factory, which is housed in a special economic zone, has a manufacturing area of 150,932 square feet and specialises in producing PCB assemblies, cable harnesses, and box builds for clients in non-defense and non-aerospace sectors like the medical technology and healthcare sectors.
High-precision manufacturing is the main focus of their Bengaluru facility, which has a manufacturing area of 12,200 square feet.
Cyient DLM Limited‘ Promoters
- Cyient Limited
Principal Shareholders’s Holding
| Pre Issue Share Holding | 100.00% |
| Post Issue Share Holding |
Cyient DLM Limited Prospectus
Contact Details
Cyient DLM Limited
3rd Floor, Plot No. 11, Software
Units Layout, Infocity,
Madhapur, Hyderabad 500 081,
Telangana, India
Email: [email protected]
Telephone: +91 821 4000 500
Website: www.cyientdlm.com
Registrar
KFin Technologies Limited
Selenium, Tower B, Plot No. – 31 and 32 Financial District
Nanakramguda, Serilingampally
Hyderabad, Rangareddy 500 032
Telangana, India
Tel: +91 40 6716 2222
E-mail: [email protected]
Website: www.kfintech.com
Lead Manager(s)
- Axis Capital Limited
- JM Financial Limited
We hope we are able to answer all your questions about Cyient DLM IPO. If you don’t have a Demat account, open it now with Zerodha best trading app of India.
Disclaimer
The reference of IPO Grey Market Premium (IPO GMP) is only valid for the date specified in the header.
On the IPO Grey Market, we do not purchase or sell IPO forms.
The Kostak Rate is the profit earned by selling an IPO application (in an off-market transaction) to somebody else before the issue is allotted or listed.
Do not subscribe to an IPO based solely on the premium price, as it may alter at any time before to the listing. Only consider the fundamentals of the companies when subscribing.
The GMP rates for IPOs are based on market intelligence. Please keep in mind that these IPO GMP rates may vary by geography and market.
Note:
Profit must do not engage in grey market trading or facilitate the purchase or sale of IPO forms. We don’t endorse such activities at all. We are sticky against such activities & never advise anyone to trade in grey market at all.
FAQ
Cyient DLM Limited IPO Opening Date?
Cyient DLM Limited IPO will open in April 2023.
Cyient DLM Limited IPO Listing Date?
Cyient DLM Limited IPO will list in April 2023.
Cyient DLM IPO GMP Today?
Cyient DLM IPO Grey Market Premium is INR 0 .
Cyient DLM Limited IPO Allotment Date?
Cyient DLM Limited IPO basis of allotment will be in April 2023.
Lot size for Cyient DLM Limited IPO?
Lot size for Cyient DLM Limited IPO is 0.
