Cyient DLM shares are all set to debut on bourses BSE and NSE on Monday, July 10, after the company’s IPO concluded last month with an overall subscription of 67 times the equity on offer.
Cyient DLM shares are all set to debut on bourses BSE and NSE on Monday, July 10, after the company’s IPO concluded last month with an overall subscription of 67 times the equity on offer. The IPO — which comprised fresh issuance of shares worth an estimated Rs 592 crore — received bids for 89.7 crore shares against the 1.3 crore shares on offer, according to provisional exchange data.
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EDITOR’S TAKE | What Anil Singhvi recommends
Zee Business Managing Editor Anil Singhvi, who had recommended applying for the Cyient DLM IPO for listing gains, suggests invsting in the company from a long-term perspective.
Cyient DLM, a subsidiary of IT firm Cyient, is a provider of electronic manufacturing services and solutions. Here’s how different investors responded to the IPO, which was open for subscription from June 27 to June 30:
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| Category | Reservation | Subscription (No. of times the shares on offer) |
| Qualified institutional buyers (QIBs) | 75% | 90.4 |
| Non-institutional investors (NIIs) | 15% | 45.1 |
| Retail investors | 10% | 49.2 |
| Overall | 100% | 67.3 |
Under the IPO, potential investors were able to bid for Cyient DLM shares in multiples of 56, translating to Rs 14,000-14,840 per lot.
Singhvi has identified the following positive and negative points about Cyient DLM:
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Positive
- Reputed promoter background
- No criminal litigation against the company, its promoters or directors
- A strong growth outlook
- Strong names in the anchor book
Negative
- High dependency on imported raw material
- Valuations reasonable; not cheap, not very high
