Cyient DLM IPO subscribed 67x on final day as QIB bidding surges

Cyient DLM IPO subscribed 67x on final day as QIB bidding surges
Source: BCCL
  • The Qualified institutional buyer (QIBs) portion of the circuit board maker’s IPO was subscribed 90 times the shares on offer.
  • The retail portion of the issue was subscribed 49 times over.
  • The non-institutional investor portion was subscribed over 45 times.
The public issue of circuit board maker Cyient DLM was subscribed 67 times the shares on offer on Friday, the last day of the issue.

Qualified institutional buyers (QIBs) showed good interest on the third day, with this portion being subscribed 90 times. The retail portion saw bids amounting to 49 times the shares on offer, with similar interest from non institutional investors, as per data on BSE as of 5 pm.

Two other IPOs were open for subscription on Friday. IdeaForge’s IPO was subscribed 106 times over the shares on offer, while PHK Ventures, which opened today, received very low response.

CategoryNo. of times subscribed
Non institutional investors45.05
Source: BSE

About the company

The company manufactures printed circuit boards, cable harnesses, and box builds used in aviation and medical diagnostic sectors. The price band of the issue has been fixed at ₹250-265, and it plans to raise as much as ₹592 crore via the public issue.

It has already raised ₹259 crore from 20 anchor investors like ICICI Prudential, HDFC MF, Tata Infrastructure Fund, Societe Generale, LIC MF and more.

Its revenue went up by 15% in FY23 to ₹832 crore as compared to FY22. Net profit, however, fell by 20% to ₹31.7 crore for the period. The IPO is a complete offer for sale, and the company intends to use the net proceeds towards working capital, capex, debt repayment, and general corporate purposes

Funded via IPO proceeds, acquisitions can bring its manufacturing operations closer to customers and increase wallet share, a critical monitorable, says Anand Rathi which gave a ‘subscribe’ rating on the IPO.

The IPO has been commanding a grey market premium of ₹100, as per media reports. Grey market premium (GMP) is the premium at which an unlisted stock is traded in an unofficial market.


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