The initial public offering of Cyient DLM has received good response from investors on the first day of bidding with bids for 3.53 crore equity shares against an offer size of 1.33 crore shares, subscribing 2.65 times on June 27.
Retail investors seem very bullish on the company as they have bought 9.82 times the allotted quota in the initial hours, while the portion set aside for employees was booked 29 percent.
The company has reserved shares worth Rs 15 crore for its employees at a discount of Rs 15 to the final issue price.
High networth individuals also showed good interest in the IPO, putting in bids 3.57 times the reserved portion, while qualified institutional buyers have subscribed for 3 percent shares of the part set aside for them.
Up to 75 percent of the offer has been reserved for qualified institutional buyers, 15 percent for high networth individuals (non-institutional investors) and the rest 10 percent for retail investors.
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The electronic manufacturing services and solutions intends to raise Rs 592 crore through public issue of 2.23 crore equity shares. This is entirely a fresh issue by the company. So, the entire money, excluding issue expenses, will be utilised by the firm.
The company mopped up Rs 259.64 crore from the anchor book, a part of qualified institutional buyers' portion, on June 26, a day before the issue debut. Consequently, the offer size has been reduced from 2.23 crore equity shares to 1.33 crore shares.
Also Read Moneycontrol's Exclusive Research Note on Cyient DLM IPO
The price band for the offer, which will close on June 30, has been fixed at Rs 250-265 per share.
Before filing the red herring prospectus, the subsidiary of IT firm Cyient raised Rs 108 crore in a pre-IPO placement of 40.75 lakh equity shares. Hence, the total fresh issue size has been adjusted to Rs 592 crore against Rs 700 crore earlier.
Cyient DLM is an integrated electronics manufacturing services and solutions provider of printed circuit board assembly, cable harnesses and box builds, which it provides to clients as build to print (B2P), or build to specification (B2S).
The company plans to use the fresh issue proceeds for funding incremental working capital requirements, capital expenditure, repaying debts, and inorganic growth, besides general corporate purposes.
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