Shares of Cyient surged as much as 7 per cent during the trading session on Wednesday after its subsidiary Cyient DLM received approval from the capital markets regulator Sebi to launch its Rs 740 crore initial public offering (IPO). The issue is entirely a fresh issue.
The Securities and Exchange Board of India (Sebi) had given its final observation to the company on March 29, 2023. For any company who intends to launch an IPO, follow-on public offering (FPO) or rights issue, Sebi’s observations are mandatory. Cyient DLM filed its draft paper on January 10, 2023,
Cyient DLM, a subsidiary of Cyient Ltd, is one of the leading integrated electronic manufacturing services (EMS) and solutions providers with strong capabilities across the value chain and the entire life cycle of a product.
Shares of Cyient Ltd surged 7 per cent to Rs 1,049.80 during Wednesday’s afternoon session, before giving up its gains partially. The scrip had settled at Rs 994.55 on Monday.
Shares of Cyient have risen as much as 15 per cent in the last one month, whereas the stock is up 35 per cent in the year 2023 so far. In the last one year, the stock has risen about 20 per cent.
Cyient DLM, may consider a further issue of specified securities, including by way of a private placement, rights issue, preferential offer worth Rs 148 crore in consultation with the book-running lead managers before the filing of the red herring prospectus (RHP) with the registrar of companies, the company said in its media release.
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. The stock will be listed at both BSE and NSE.
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