Cyient DLM, in consultation with the book running lead managers, may consider a pre-IPO placement aggregating up to Rs 148 crore at its discretion, as may be permitted under applicable laws.
A portion of shares will be reserved for the eligible employees of the Cyient DLM and shareholders of Cyient separately. However, the exact portion of reservation is not disclosed in the DRHP.
Cyient DLM is an integrated electronic manufacturing services (EMS) and solutions providers with strong capabilities across the value chain and the entire life cycle of a product.
Cyient DLM offers end-to-end (E2E) manufacturing, assembly and repair capabilities and re-engineering services with a focus on sectors like aerospace, defence, medical, energy, railways and other industries.
The company has a strong clientele of marquee customers such as Honeywell International, Thales Global Services, ABB, Bharat Electronics, Molbio Diagnostics, among others, which belong to a diverse range of high-entry-barrier industries.
In September 2022, the company had allotted 15.7 lakh equity shares to Cyient Limited at an issue price of Rs 566 apiece, amounting to Rs 88.86 crore. Cyient is the sole shareholder of the company which holds the entire 100 per cent stake.
For the six months ended on September 30, 2022, the company reported a net profit of Rs 13.42 crore with a revenue at Rs 340.27 crore, whereas its profit stood at Rs 39.8 crore in FY22 with a revenue of Rs 720.53 crore.
However, it reported a net loss of Rs 6.7 crore in the financial year 2019-20, which was primarily due to one-time expected credit loss allowance Rs 8.37 crore, the company said in DRHP.
The company will allocate 75 per cent of the net offer for the qualified institutional bidders, whereas non-institutional bidders will get 15 per cent of the net offer. Remaining 10 per cent of shares will be allocated to retail investors.
Axis Capital and JM Financial are the book running lead managers to the issue, whereas KFin Technologies has been appointed as the registrar to the issue.
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