Cyient DLM IPO Opens Today, GMP Jumps Ahead of Subscription

The initial public offering (IPO) of Cyient DLM opens today for subscription on 27th June 2023 and will close on June 30. The Cyient DLM IPO is a main-board IPO with a total offering size of up to Rs 592.00 Crores comprising 22,339,623 equity shares with a face value of Rs 10. The price band of Cyient DLM IPO is fixed at Rs 250 to Rs 265 per share. In order to participate in the Cyient DLM IPO, retail investors must pay a minimum subscription amount of Rs 14,840. The IPO is a wholly new issuance of equity shares with a maximum value of Rs 592 crore and investors can bid for a minimum lot size of 56 shares.

The QIB portion will receive about 75% of the net offer, followed by the NII category with 15% and retail investors with 10%. The net profit of Cyient DLM grew by 4% to Rs 31.73 crore in FY23 from Rs 39.80 crore the previous year. In comparison to FY22, when revenue was 720.53 crores, FY23 revenue climbed by 15.4% to Rs 832 crores. EBITDA climbed by 4.4 percent to Rs 87.8 crore. As of March 2023, it had a sizable order book of Rs 2,432.55 crore. The P/E of 66.2x (FY23) for Cyient DLM at the upper price band of Rs 265 makes the valuation attractive in the industry.

High net worth individuals can apply for as little as 14 lots for Rs 2,07,760 and as many as 67 lots worth Rs 9,94,280, which can range from Rs 2 to 10 lakh for subscribing to the issue. HNIs who bid more than Rs. 10 lakh are required to put down a minimum of Rs. 10,09,120 for 68 lots. By July 5, Cyient DLM will complete the share allocation, and by July 7, it will transfer shares to eligible investors' demat accounts.

Cyient DLM IPO's latest GMP in the grey market today is Rs 98 as of June 27th 2023 09:00 AM, according to the market watchers. The expected listing price for the Cyient DLM IPO is Rs 363 (cap price + today's GMP), taking the upper price band of Rs 265 into consideration. Hence, according to the analysts, Cyient DLM is expected to be listed at a healthy upside premium of 36.98% over the issue price during its listing date.

Kfin Technologies Limited is the registrar of the issue while Axis Capital Limited and Jm Financial Limited are the lead managers. The listing date of Cyient DLM is Monday, 10 July 2023.