Cyient DLM Ltd, a subsidiary of Cyient Ltd, has set a price band of Rs 250-265 a share for its initial public offering that opens for subscription on June 27.
The IPO will close on June 30, while anchor investors can bid for the issue on June 26. The company plans to finalise the allotment of shares on July 5 and refunds will be initiated on July 6. The shares of Cyient DLM will list on exchanges on July 10. Cyient Ltd holds over 92.84 percent stake in the Cyient DLM.
The IPO consisted of a pure fresh issue of Rs 592 crore. On the upper price band, the firm is valued at Rs 2,000 crore. JM Financials and Axis Capital are the lead managers to the issue.
The proceeds from the issue will be used for funding working capital requirements, capital expenditures, repayment of debt and achieving inorganic growth through acquisitions.
As of March 2023, the firm has aggregate outstanding borrowings of Rs 314.47 crore. The order book of the company stood at Rs 2432.55 crore as of March 2023.
Cyient DLM stands as a prominent provider of integrated Electronic Manufacturing Services (EMS) and comprehensive solutions, offering a wide range of capabilities throughout the value chain and the complete product life cycle.
Cyient DLM offers Electronic Manufacturing Services (EMS) in two main categories: Build to Print (B2P) and Build to Specification (B2S) services. The B2P solutions involve clients providing the product design, and Cyient DLM responds with agile and flexible manufacturing services tailored to meet their specific requirements.
The core solutions provided by Cyient DLM encompass various key components, including printed circuit board (PCB) assembly (PCBA), cable harnesses, and box builds. These components play a crucial role in safety of critical systems such as cockpits, inflight systems, landing systems, and medical diagnostic equipment.
The firm has two manufacturing units in Mysuru, Hyderabad and Bengaluru, with a total manufacturing area of 229,061 sq. ft. Its Mysuru facility has a manufacturing area of 65,929 sq. ft. and is engaged primarily in the manufacturing of PCBA, cable harnesses and box builds for clients in the aerospace and defence industries.
Its Hyderabad facility in a special economic zone is sprawled over 150,932 sq. ft. and produces PCBA, cable harnesses and box builds for clients based in non-aerospace and non defence industries, such as medical technology and healthcare.
For FY23, the company reported a revenue of Rs 832.03 crore, compared to Rs 720.53 crore a year ago. Net profit for the fiscal stood at Rs 31.73 crore as against Rs 39.80 crore last year.
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