Cyient DLM IPO, Day 3: The issue has been subscribed 19 times in the last day; Retail share booked over 41 times

Cyient DLM IPO Subscription Status: Cyient DLM Ltd’s initial public offering (IPO) has been subscribed to date 18.96 times as of June 30th, the last day of the tender.

Cyient DLM IPO Subscription Status: Cyient DLM Ltd’s initial public offering (IPO) has been subscribed to date 18.96 times as of June 30th, the last day of the tender.

The public offering, which opened for subscription on Tuesday, June 27, has so far received offers for 23.84 crore shares, compared to the IPO size of 2.23 crore shares, as reported on the NSE available data.

The public offering, which opened for subscription on Tuesday, June 27, has so far received offers for 23.84 crore shares, compared to the IPO size of 2.23 crore shares, as reported on the NSE available data.

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Cyient DLM’s IPO received 41.64 subscriptions in the retail category and 8.43 subscriptions in the Qualified Institutional Buyers (QIB) category. The share for non-institutional investors (NII) has been booked 27.98 times up to 1:30 p.m. on Friday.

The ₹Cyient DLM’s IPO, valued at 592 crore, ending today, is a full issuance of shares valued at 2.23 crore. The company has priced the issue at ₹250 to ₹265 per share. At the higher end of the price range is the value of the company ₹2,000 crores.

Before the IPO, Cyient DLM, the subsidiary of the IT conglomerate Cyient Ltd., was founded ₹259.64 crore from 20 anchor investors.

At the IPO, private investors can submit up to 13 offers, which corresponds to a lot size of 56 shares.

The company has reserved 10% of the shares for retail investors, 15% for non-institutional investors and 75% of the shares for qualified institutional buyers (QIB).

In addition, the company is making shares available to its employees at a reduced price of Rs. 15 each.

JM Financials and Axis Capital are the lead managers of the offering and IPO registrar Kfin Technologies is responsible for the offering.

Analysts are long-term bullish on Cyient DLM’s IPO as strong industry tailwinds bode well for the company as the domestic EMS (electronics manufacturing services) industry is expected to grow 32% on average in FY22-27.

“In FY21-23, Cyient DLM’s revenue growth lagged its peers at a 15% CAGR, but its strong backlog provides a good perspective on accelerated growth going forward. Valuation on a P/E basis compares reasonably well to peers with earnings of 66.2x for FY23 when factoring in future growth opportunities. “We recommend subscribing for the issue from a long-term perspective,” said analysts at brokerage firm Nirmal Bang.

Disclaimer: The views and recommendations expressed in this article are those of individual analysts and brokerage firms. These do not reflect the views of Mint. We recommend investors to consult certified experts before making an investment decision.

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