The ₹592-crore initial public offering of Cyient DLM, an arm of the Hyderabad-based listed entity Cyient Ltd, was subscribed 7.60 times at the end of of Day 2. The price band of the offer is 250-265. The issue closes today.
Investors can bid for a minimum of 56 equity shares and its multiples. About 75 per cent of the net offer is reserved for the QIBs, 15 per cent for the NII category, and 10 per cent for retail investors.
While the portion for QIBs, who generally bid on the last day, has been subscribed just 0.91 times, the quota reserved for retail investors and HNIs has been subscribed 24 times and 11.24 times, respectively. The employee portion saw bidding of 1.09 times at the end of Day 2. The company has reserved ₹15 crore worth of shares for its employees, who will get a discount of ₹15 a share to the final issue price.
Ahead of the IPO, the company made a private placement of 40 lakh shares aggregating to ₹108 crore.
The company’s shares will be listed on the BSE and National Stock Exchange.
As part of the IPO process, the company on Monday raised ₹259.64 crore from 20 anchor investors, including Societe Generale, BNP Paribas Arbitrage, Amansa Holdings, ICICI Prudential Mutual Fund, HDFC Mutual Fund, Aditya Birla Sun Life Trustee, DSP India, Tata Mutual Fund, LIC MF, Catamaran Ekam, and Kotak Mutual Fund. Cyient DLM has finalised the allocation of 97,98,113 equity shares to anchor investors at an issue price of ₹265 a share, the upper price band, it said in an exchange filing.
The net proceeds from the issue will be used towards funding incremental working capital requirements (₹291 crore), capital expenditure, repayment of debt, and other general corporate purposes.
Cyient DLM, the de-merged entity of Cyient, provides contract manufacturing services such as build-to-print (B2P) and build-to-specification (B2S). Its solutions primarily comprise printed circuit board assembly (PCBA), cable harnesses, and box builds, which are used in critical safety systems such as cockpits, in-flight systems, landing systems, and medical diagnostic equipment.
Cyient DLM has manufacturing facilities in Hyderabad, Bengaluru, and Mysore, with a total manufacturing area of 2.29 lakh sq ft. It is a manufacturing partner and systems supplier for global OEMs in the aerospace and defence, medical technology, and industrial sectors.
The company has an order book worth ₹2,400 crore, which will be executed in 24-30 months.
In management changes effected ahead of the IPO, Krishna Bodanapu was appointed Executive Vice-Chairman and Managing Director of Cyient Limited. Executive Director, Karthikeyan Natarajan, was appointed CEO, while Anthony Montalbano was appointed CEO of Cyient DLM. The CEOs of Cyient Ltd and Cyient DLM will report to Krishna Bodanapu.