Cyient DLM Limited IPO - Review, Price, GMP & Valuation

Cyient DLM Limited - A Complete Overview

Cyient DLM Limited is a two-decade incorporation company started in 1993 where it provides Electronic Manufacturing Services and Solutions. It works under two categories; one is B2P and B2S. 

B2P abbreviated as Built to Print means that the client will provide the design for a particular product, and the company provides agile and flexible manufacturing services. 

B2S is abbreviated as build to specifications where it involves designing the product and the specifications will be manufactured based on the client's necessity. 

This is what Cyient DLM Limited is and for the past 20 years, they have been one of the leading electronic manufacturing solutions and provide the best quality products according to the client’s necessity. 

 

What does the company do?

Cyient DLM Limited is a technology solution company that specializes in industry-centric services. It operates within two primary categories: B2P and B2S. B2P stands for Built to Print, which involves the client providing the product design, while B2S stands for Build to Specifications, where Cyient DLM Limited undertakes the design of a product based on the specific requirements provided by the client and manufactures it accordingly.

 

 

Company Products

Cyient DLM Limited engages in the manufacturing of Printed Circuit boards, Printed Circuit Board Assembly, Cable Harnesses and box builds. The company operates under both models, offering built products as well as manufacturing services based on client specifications.

 

IPO Overview

Cyient DLM IPO Date is scheduled to open on June 27th and close on June 30th, 2023.  Cyient DLM share price range between Rs. 250 and Rs. 265 per share, with a face value of Rs. 10.

The total issue size of the IPO is 22,339,623 shares, and there will be no offer for sale shares included. Notably, the company is offering its employees an employee discount of Rs. 15 per share.

In terms of allocation, 75% of the net offer is reserved for institutional buyers, 15% is allocated to non-institutional buyers, and the remaining 10% of the total issue size is reserved for retail investors.

 

Cyient DLM Limited IPO timetable

Events	Dates
IPO Opening Date	27 June 2023
IPO Closing Date	30 June 2023
IPO Allotment Date	05 July 2023
Refund Initiation	06 July 2023
IPO Listing Date	10 July 2023

 

Cyient DLM Limited IPO details

IPO opening & closing date	27 June 2023 to 30 June 2023
Face Value	Rs 10 per share
Issue Price	Rs 250 to Rs 265 per share
Lot Size	56 shares per lot
Price of 1 Lot	Rs 14,840
Total Issue Size	22,339,623 Shares
Fresh Issue	22,339,623 Shares
Employee Discount	Rs 15 per share
Listing at	NSE, BSE
Issue Type	Book Built Issue
Registrar	Kfin Technologies Limited

 

Cyient DLM Limited IPO Lot Details

Minimum Lot Investment (Retail)	1 Lot
Maximum Lot Investment (Retail)	13 Lots
Minimum Lot Investment (HNI)	14 Lots
Maximum Lot Investment (HNI)	67 Lots

 

Cyient DLM Limited IPO Reservation

Institution Portion	50%
Non-institution Portion	15%
Retail Portion	35%

 

Company Financials

Amount in Crores

Period	FY-21	FY-22	FY-23
Total Revenue	636.91	728.48	838.34
Net Profit	11.81	39.40	31.73
Net Worth	37.65	77.11	197.87
Reserve & Surplus	36.29	75.75	145.01
Total Borrowing	233.77	293.19	314.47

 

Objective of the Issue

Through the IPO, the company aims to achieve the following objectives 

• The funds will be utilized to meet the incremental working capital requirements of the  company.
• Funding capital expenditure of the company.
• Repaying the company borrowings.
• Achieving inorganic growth through acquisitions
• General Corporate Purposes

 

Promoters And Management of Cyient DLM Limited IPO

 The company is led by a team of experienced individuals who are instrumental in driving its growth and success. The key promoters of the company include Ganesh Venkat Krishna Bodanapu (MD&CEO), Ajay Aggarwal (ED & CFO), Karthikeyan Natarajan (ED & COO), Venkat Rama Mohan Reddy Bodanapu (Founder, Chairman, and Non-Executive Director), M.M. Murugappan (Chairman and Non-Executive Director, Non-Independent Director), Vivek Narayan Gour (Non-Executive and Independent Director), Matangi Gowrishankar (Non-Executive and Independent Director), Vikas Sehgal (Non-Executive and Independent Director), Abhishek Ramesh (Non-Executive and Independent Director).

Prior to the issuance of shares, these key promoters hold a 92.84% stake in the company, which will be diluted to 66.68% post the issuance of shares. Their leadership and significant ownership demonstrate their commitment and influence in driving the company's strategic direction and future growth.

 

Peer Comparison

The company operates in a competitive market, and it faces competition from several key players. Here are some of the company's main competitors and a comparison of their offerings and capabilities.

Name of the Company	Total Income	Net Profit	EPS	RoNW (%)
Cyient DLM	8383.4	317.3	7.8	16.0
Syrma SGS Technologies	20921.4	1230.8	7.5	11.6
Kaynes Technologies	11375.1	416.7	19.8	13.1
DCX system	12831.2	720.1	8.4	15.1

 

IPO's Valuations

Cyient DLM Limited's IPO has an issue size of 592 crores, with shares offered in the price range of Rs. 250 to Rs. 265 per share, and a face value of Rs. 10. The company reported an EPS of Rs. 16.17 for the fiscal year 2022. While the company has not specified the P/E ratio, based on the EPS, the P/E ratio is calculated to be 16.

 

Dividend Policy

Cyient DLM Limited has not disclosed its dividend policy for the past three financial years. The company intends to announce its dividend policy once all plans are finalized and settled after the IPO. The specific policies will be explained in accordance with the prevailing market conditions and the number of shareholders at that time. 

 

IPO's Strengths

• Three decades of gaining customer trust
• Expertise in handling safety electronics
• Deep industry knowledge
• Team of experienced professionals
• Customer-centric approach

 

IPO's Weakness

• Limited customer base with potential financial impact from customer losses
• Less market share in the EMS sector
• Challenge in managing inventory costs
• Limited operating facilities

 

 

IPO GMP

Cyient DLM IPO GMP today stands at around Rs. 110 (+/-), relative to the company's share price of Rs. 265. The projected IPO listing price is expected to be around Rs. 375, indicating a potential profit or loss of approximately 37.34%.

 

Conclusion

Cyient DLM Limited aims to achieve heights in the industry with its extensive industry knowledge and customer-centric approach, the company is well-positioned for growth. The upcoming IPO provides an investment opportunity with the potential for profit, as Cyient DLM plans to expand its operations and deliver industry-centric technology solutions. However, it is essential for potential investors to thoroughly analyze all factors and make informed decisions before investing their money.

 

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To Read the Prospectus of the Company Click Here to Download the DRHP

 

 

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