Cyient DLM IPO: Stock soars above 58% on listing day!
About the Business: Founded in June 1993, Cyient DLM is an electronic manufacturing services company which provides Build to Print (B2P) and Build to Specification (B2S) services.
Cyient DLM soared 58% in its first trading day on strong investor interest. Technology firms are expected to perform better as the interest rate scenario in India seems to be on the cooler front, following multiple rate hikes last year.
The stock closed at Rs 420.60 per share on Monday, July 10 2023, much higher than the price band for the offer which was at Rs 250-265 a share.
The company is engaged in the production of Printed circuit boards, cable harnesses and Box builds which are used in safety critical systems such as cockpits, inflight systems, landing systems, and medical diagnostic equipment.
Cyient DLM IPO Date: Jun 27, 2023- Jun 30, 2023
Cyient DLM IPO Price Band: Rs 250 - Rs 265 per share
Cyient DLM IPO Issue Size: The IPO is a completely fresh issue where the company is looking to raise Rs 592 crores.
Cyient DLM IPO Market Size: The electronic manufacturing space is one of the fastest growing in India. According to the company, as of 2022, the Indian EMS industry contributes a mere 2.2% of the world market. However, it is expected to clock a CAGR of 32.3% to reach a contribution of 7% of the global market by 2026.
Cyient DLM Financial Performance: Cyient Limited has displayed growth in both revenue and profits over the years characterized by India’s increasing electronics manufacturing push
| Name | FY 2023 | FY 2022 | FY 2021 |
| Total Income | 838.3 | 728.5 | 637 |
| Total Expenses | 795.2 | 677.8 | 621.3 |
| Profit | 31.7 | 39.8 | 11.8 |
| Return on Net Worth | 16.03% | 51.61% | 31.38% |
(in Rs crores)
Cyient DLM IPO Peers: Due to the burgeoning pace of electronics manufacturing in the country, Cyient DLM has quite a few peers which are already listed in the market. Let’s see how Cyient DLM fares against these peers.
| Name | Revenue | Profits | Return on Net Worth |
| Cyient DLM | 838.3 | 31.7 | 16.03% |
| Syrma SGS | 2,092.1 | 123.1 | 11.60% |
| Kaynes Tech | 1,137.5 | 95.2 | 13.14% |
| DCX Systems | 1,283.2 | 71.7 | 15.13% |
(as of FY 23, all in Rs crores except Return on Net Worth)
Cyient DLM IPO Objective: The company intends to utilize the proceeds of the IPO for:
- Funding incremental working capital requirements of the company.
- Funding capital expenditure of the company.
- Repayment/prepayment, in part or full, of certain of the borrowings.
- Achieving inorganic growth through acquisitions.
- General corporate purposes.
Cyient DLM IPO Structure: The IPO of Cyient DLM is reserved 75% for Qualified Institutional Buyers, 15% for NII Investors and 10% for Retail Investors.
This is not investment advice. Investments in the securities market are subject to market risk, read all the related documents carefully before investing. Past performance is not indicative of future returns.