Hyderabad-based technology solutions Cyient Ltd’s subsidiary Cyient DLM on Wednesday received a nod from market regulator SEBI to launch its initial public offering (IPO). The company’s IPO comprises a fresh issue of shares aggregating up to Rs 740 crore.
“Cyient DLM, in consultation with the book-running lead managers, may consider a further issue of specified securities, including by way of a private placement, rights issue, preferential offer, or any other method at its discretion, as may be permitted under applicable laws for an amount aggregating up to Rs 148 crore, prior to the filing of the red herring prospectus with the registrar of companies,” a company statement read.
The company would allocate 75 per cent of the net offer for the qualified institutional bidders (QIBs), whereas non-institutional bidders would get 15 per cent of the net offer. The remaining 10 per cent of shares would 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 would be listed at both BSE and NSE.
For any company that intends to launch an IPO, follow-on public offering (FPO) or rights issue, Securities and Exchange Board of India’s observations are mandatory. Cyient DLM filed its draft paper in January this year.
Cyient DLM, a subsidiary of Cyient Ltd, is an integrated electronic manufacturing service (EMS) and solutions provider. It is involved in designing, manufacturing, testing and providing certification support.
Shares of Cyient Ltd surged 5.98 per cent to settle at Rs 1,054 over its previous close of Rs 994.55. The counter has gained 29.17 per cent so far this year and moved 13.27 per cent higher in a year.
Turnover on the counter stood at Rs 3.41 crore, commanding a market capitalisation (m-cap) of Rs 11,654.61 crore.
Meanwhile, Indian equity benchmarks rose sharply today, extending their winning run for the fourth straight session in this holiday-shortened week. The 30-share benchmark BSE Sensex pack settled 583 points or 0.99 per cent higher at 59,689, while the broader NSE Nifty index moved 159 points or 0.91 per cent to close at 17,557.
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