Cyient DLM IPO presents an opportunity for investors to participate in the growth potential of the company. Backed by the parent company Cyient Limited’s three decades of experience in engineering and design solutions, CDL leverages its expertise to provide innovative and reliable solutions to its clients. The IPO aims to capitalize on the increasing demand for integrated engineering services and the company’s strong track record of sustained relationships with marquee clients.
About Cyient DLM
Cyient DLM Ltd. (CDL) is a leading integrated Electronic Manufacturing Services (EMS) and solutions provider, offering a wide range of services throughout the product life cycle. With a focus on design, build, and maintain, CDL specializes in manufacturing printed circuit board assemblies (PCBAs), cable harnesses, and box builds for safety-critical systems in industries such as aerospace, defense, and medical diagnostics. As a wholly-owned subsidiary of Cyient Limited, CDL benefits from its parent company’s expertise, global presence, and customer relationships. With a strong foothold in the growing Indian EMS market and long-term relationships with marquee clients, CDL is well-positioned to capitalize on the industry’s favorable trends. The company operates three manufacturing facilities in Mysuru, Hyderabad, and Bengaluru, catering to different industry segments and offering high-quality, precision manufacturing services. With a dedicated workforce and a focus on customer satisfaction, CDL aims to maintain its position as a trusted partner for clients across regulated industries.
Cyient DLM IPO Timetable
Cyient DLM IPO opens on Jun 27, 2023, and closes on Jun 30, 2023.
| Event | Tentative Date |
|---|---|
| Opening Date | Tuesday, 27 June 2023 |
| Closing Date | Friday, 30 June 2023 |
| Basis of Allotment | Wednesday, 5 July 2023 |
| Initiation of Refunds | Thursday, 6 July 2023 |
| Credit of Shares to Demat | Friday, 7 July 2023 |
| Listing Date | Monday, 10 July 2023 |
| Cut-off time for UPI mandate confirmation | 5 PM on Jun 30, 2023 |
Cyient DLM IPO Lot Size
The Cyient DLM IPO lot size is 56 shares.
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 56 | ₹14,840 |
| Retail (Max) | 13 | 728 | ₹192,920 |
| S-HNI (Min) | 14 | 784 | ₹207,760 |
| S-HNI (Max) | 67 | 3,752 | ₹994,280 |
| B-HNI (Min) | 68 | 3,808 | ₹1,009,120 |
Cyient DLM IPO Reservation
| QIB Shares Offered | Not less than 75.00% of the Net offer |
| NII (HNI) Shares Offered | Not more than 15.00% of the Offer |
| Retail Shares Offered | Not more than 10.00% of the Offer |
IdeaForge IPO: Unlocking the Potential of Drone Technology for High-Flying Returns
Objects of the Cyient DLM IPO
The company intends to utilize the net proceeds from the issue towards the funding of the following objects:
- 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, and
- General corporate purposes.
CYient DLM IPO – Company Financial
| Period Ended | Total Assets | Total Revenue | Profit After Tax | Net Worth | Reserves and Surplus | Total Borrowing |
|---|---|---|---|---|---|---|
| 31-Mar-20 | 593.49 | 464.91 | -6.70 | 25.71 | 24.34 | 261.37 |
| 31-Mar-21 | 645.03 | 636.91 | 11.81 | 37.65 | 36.29 | 233.77 |
| 31-Mar-22 | 776.91 | 728.48 | 39.80 | 77.11 | 75.75 | 293.19 |
| 31-Mar-23 | 1,104.72 | 838.34 | 31.73 | 197.87 | 145.01 | 314.47 |
My Analysis for Cyient DLM IPO
Strengths of Cyient DLM Ltd. (CDL):
- Integrated engineering solutions across the product value chain.
- Qualified supplier to global OEMs in aerospace, defense, medical technology, and industrials.
- Sustained and long-standing relationships with marquee clients, contributing over 50% of revenue.
- Strong order book of Rs 2,432.547 crore to be executed over the next 24-30 months.
- Backed by the experience and expertise of parent company Cyient Limited.
Weaknesses of Cyient DLM Ltd. (CDL):
- Vulnerability to delays, shortages, or price volatility of raw materials, particularly electronics components.
- Impact from industry slowdown and reduced customer spending.
- Lower capacity utilization at Mysuru and Hyderabad facilities for PCBA compared to other manufacturing companies.
- Heavy reliance on the Mysuru facility, with 90.75% of total revenue contributed by it in FY2023.
- Non-ownership of the Cyient trademark, relying on a Trade-Name License Agreement.
- Some corporate records, including past equity share allotments, are not traceable.
- Exposure to changes in import and export regulations in India and key markets.
- Significant trade receivables as a percentage of FY2023 revenue.
