Cyient DLM Limited IPO

Closed

Apply now
Don't have a Zerodha account? Sign up

27th – 30th Jun 2023
10 Jul 2023
₹250 – ₹265
Lot size 56 — ₹14840

About


Established in 1993, Cyient DLM Limited provides integrated Electronics Manufacturing Services (EMS) and solutions with a focus on the entire life cycle of a product, including design, build, and maintenance.

The product portfolio of Cyient DLM Limited consists of –

  • Printed circuit board (PCB) and assembly(PCBA)
  • Cable harnesses
  • Box builds which are used in safety-critical systems such as cockpits, inflight systems, landing systems, and medical diagnostic equipment.

Break up of Product-wise contribution to revenue in FY23 (%)

Product FY23
PCBA 62.62
Box build 32.41
Cable harness 1.37
Others 3.6

About the industry:

Growing at the fastest rate among all countries at a CAGR of 32.3%, the India EMS is a sizable industry, contributing to 2.2% (USD 20 billion) of the global EMS market in CY2022 and is expected to contribute 7.0% (USD 80 billion) of the global EMS market in CY2026 mainly driven by rising labor costs in other parts of the world and a trend among large Original Equipment Manufacturers(OEMs) to outsource manufacturing rather than invest in their own infrastructure.

The public offer of Cyient DLM Limited includes a fresh offer of equity shares aggregating up to Rs. 592 crores.

Break-up of industry-wise revenue from operations (%)

Industry FY23 FY22 FY21
Aerospace 20 14.1 15.1
Defense 37.6 46.8 42
Medical Technology 16.2 22.4 29.5
Industrial 25 14.5 11.4
Others 1 2.2 1.9

Objects of the issue and proceeds utilization:

Purpose Proceeds (₹ crores)
Funding incremental working capital requirements  291 
Funding capital expenditure 43.5
Repayment/prepayment of certain borrowings 161
Achieving inorganic growth through acquisitions 70
General corporate purposes Balance

Financial Snapshot (₹ Crores)

Financial Year Total Assets Total Revenue Profit After Tax EBITDA
March 31, 2021 645 636.9 11.8 45.9
March 31, 2022 776.9 728.4 39.7 84
March 31, 2023 1104.7 838.3 31.7 87.7

Risk factors to consider:

Concentration risk: Top 10 customers constituted 91.08% of total revenue from operations in FY23.

Higher receivables: As at March 31, 2023, Trade Receivables were 161 Crore. Any loss of key customers or any defaults or delays in payment by a significant portion of customers could have a material adverse effect on business, results of operations, financial condition and cash flows.

In Fiscal 2023, 59.71% of total revenue came from geographical locations outside India. The foreign exchange fluctuations may adversely affect profitability.

The Capacity utilization in last 3 years is lower in comparison to other manufacturing companies.

Higher dependency on few suppliers: Cost of raw materials consumed attributed to our top 5 and top 10 suppliers constituted 30.78% and 43.02% respectively, of o total cost of raw materials consumed. Any delay, shortage, interruption, reduction in the supply of or volatility in the prices of raw materials may have a material adverse effect on the business.

IPO Schedule

Issue Period 27th June to 30th June 2023
Finalization of Allotment 5th July 2023
Initiation of Refunds 6th July 2023
Credit of Shares 7th July 2023
Date of Listing 10th July 2023
Mandate end date 15th July 2023
Anchor Investors Lock-In End Date 30th July 2023

How do I apply to the Cyient DLM Limited IPO?

You can apply for the Cyient DLM Limited IPO using any supported UPI app by following two steps:

  • Enter your bid on Kite
  • Accept the UPI mandate on your phone

On acceptance of the mandate, the bid amount will get blocked in your bank account. Click here to learn more.

Where do I check the allotment status for Cyient DLM Limited IPO?

You can check the allotment status for the Cyient DLM Limited IPO on the website of the Registrar and Transfer agent.

Alternatively, you can also check the allotment status on the NSE website.