The initial public offer (IPO) of Cyient DLM Ltd, a subsidiary of the information technology (IT) company Cyient, will open for subscription on June 27. The IPO will remain open for four days, and will conclude on June 30. Ahead of the subscription, the company's shares are commanding a premium of Rs 110 in the unlisted market.

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The company has fixed a price band of Rs 250-265 per equity share for the public offer.

Here's your 10-point cheatsheet on Cyient DLM IPO:

Fresh issue, no OFS: The public offer is completely a fresh issue of equity shares of up to Rs 592 crore, reduced from Rs 740 crore earlier. As this is a fresh issue and there is no offer for sale (OFS), the company can use the entire proceeds of the IPO. Cyient DLM has undertaken a pre-IPO placement of 40.75 lakh equity shares, reduced to Rs 108 crore from Rs 140 crore earlier.

Allocation: The company will allocate 75 percent of the net offer for the qualified institutional bidders (QIBs), whereas non-institutional bidders will get 15 percent of the net offer. The remaining 10 percent of shares would be allocated to retail investors.

Anchor investor bidding date: The subscription for anchor investors will open on June 26, the company said.

Allotment of shares: Cyient DLM plans to finalise the allotment of shares on July 5 and refunds will be initiated on July 6.

Listing: The shares of Cyient DLM will list on exchanges likely by July 10. Cyient Ltd holds over 92.84 percent stake in the Cyient DLM.

Net proceeds: At the upper end of the price band, the company is valued at Rs 2,000 crore. The net proceeds from the public offer will be utilised to fund incremental working capital requirements, capital expenditure, repayment of debt, and other general corporate purposes.

Issue lead managers: According to the red-herring prospectus (RHP), Axis Capital, JM Financial are the book-running lead managers for the IPO while KFin Technologies has been appointed as the registrar to the issue. The draft papers were filed with Sebi in January 2023 and received approval from the regulator in March this year.

About the company: 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 had last year appointed Anthony Montalbano as its CEO.

Financials: For the March 2023 quarter, the company's revenue from operations rose by 15 percent to Rs 832 crore, while profit for the same period came in at Rs 31.7 crore, up by 4 percent.

Cyient shares: The Cyient stock fluctuated wildly on June 21 after the firm announced that the IPO of subsidiary Cyient DLM will open for subscription on June 27. On Thursday, Cyient shares were trading flat at Rs 1,469.05 apiece on the NSE.

First Published:Jun 22, 2023 11:22 AM IST