Cyient DLM’s Rs 592 crore-IPO received a massive response from investors with an overall subscription at 71.3 times. Ahead of listing, the company’s shares commanded a premium of Rs 155 in the unlisted market.
The net proceeds from the issue will be used towards funding incremental working capital requirements, capital expenditure, repayment of debt, and other general corporate purposes.
Cyient DLM is an integrated electronic manufacturing services (EMS) and solutions provider with a focus on the entire life cycle of a product, including design, build, and maintenance.
The company enjoys long-term relationships with marquee customers such as Honeywell, Thales Global Services, ABB, Bharat Electronics and Molbio Diagnostics, having had an average relationship of over 11 years.
At the upper price band, Cyient DLM is available at a P/E of 66.2x FY23 earnings, aligning with industry peers’ valuations, according to analysts.
For the financial year ended March 2023, the company’s revenue from operations grew 15% to Rs 832 crore, while profit for the same period stood at Rs 31.7 crore, up by 4%.The company derives a major part of its revenues from printed circuit board assembly (PCBA), with almost 63% contribution and 32% of the revenue coming from box builds which are used in safety-critical systems such as cockpits, inflight systems, landing systems, and medical diagnostic equipment.
Axis Capital and JM Financial were the book-running lead managers to the issue, while KFin Technologies acted as the registrar.
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