Cyient DLM recorded a stellar performance on its debut on July 10 and turned out to be the second biggest gainer amongst listings in the current calendar year despite volatility in the equity markets. Ideaforge Technology was the top performer this year with 93 percent gains on debut last Friday.
The engineering manufacturing services (EMS) and solutions provider opened with 52 gains at Rs 403 on the NSE, which was largely on expected lines given the strong subscription demand to its IPO (over 67 times) and healthy policy tailwinds for the EMS sector.
The stock climbed up to Rs 427, up 61 percent intraday, but did not fall below its opening price throughout the session. It settled at Rs 420.60 on its listing day, registering a 58.72 percent upside and forming a large bullish candlestick pattern on the daily charts. The closing on the BSE was Rs 420.75.
Cyient DLM traded with 14.19 lakh shares on the BSE and over 2.1 crore shares on the NSE.
"Cyient DLM is a fundamentally strong company, has a strong track record of growth, and is well-positioned to benefit from the growing demand for digital manufacturing solutions," Anubhuti Mishra, Equity Research Analyst at Swastika Investmart said.
She advised existing investors to hold the shares for the long term with a stop-loss at Rs 362.7, considering the good growth prospects.
Also read: Analysts cautious after Cyient DLM big-bang listing spins bumper gains
However, its promoter entity Cyient moved in the opposite direction, falling 5.4 percent to Rs 1,401. The stock hit a record high of Rs 1,555 on July 3, but reeled under selling pressure in following sessions till today. It has formed a large bearish candlestick pattern on the daily charts, after decisively breaking out of upward sloping support trendline.
Cyient DLM has mopped up Rs 592 crore through public issue, which comprised only fresh issue. It would be utilising the issue proceeds for working capital requirements, capital expenditure, repaying debts, and inorganic growth.
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The price band for the offer was Rs 250-265 per share.
Incorporated in 1993, Cyient DLM provides electronic manufacturing services as build-to-print (B2P) and build-to-specification (B2S) services, to global OEMs in the aerospace and defence, medical technology and industrial sectors. Its solutions comprise printed circuit board (PCB) assembly (PCBA), cable harnesses, and box builds which are used in safety-critical systems such as cockpits, inflight systems, landing systems, and medical diagnostic equipment.
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