Cyient DLM, a subsidiary of IT services firm Cyient, on Wednesday received a go-ahead from the market regulator Securities and Exchange Board of India (SEBI) to launch its initial public offering (IPO).

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The company's public offering comprises a fresh issue of up to Rs 740 crore and there is no offer for sale portion. This means the entire raised funds, excluding issue expenses, will be utilised by the company.

The fresh issue funds will be used for incremental working capital requirements, capital expenditure, debt repayment, inorganic growth through acquisitions, and general corporate purposes.

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Axis Capital and JM Financial are the book-running lead managers for the issue.

Cyient DLM filed its draft papers to SEBI on January 10, 2023, to raise up to Rs 740 crore via an initial public offering.

In addition, the electronic manufacturing services and solutions provider, Cyient DLM, may consider a pre-IPO placement to raise up to Rs 148 crore before filing the red herring prospectus (RHP) with the Registrar of Companies. If the said placement is undertaken by the company, then accordingly the fresh issue size will be reduced to the extent of such pre-IPO placement.

According to Frost & Sullivan's report, Cyient DLM is an integrated electronic manufacturing service (EMS) and solutions provider. It has strong capabilities across the value chain and the entire life cycle of a product.

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The company with over two decades of experience in developing high-mix, low-to-medium volume highly complex systems are a qualified supplier to global OEMs in the aerospace and defence, medical technology, and industrial sectors.

Cyient DLM is one of the few EMS companies in India catering to highly regulated industries and the largest supplier of EMS services to the aerospace and defence industry by value in India.

The company’s solutions primarily comprise printed circuit board assembly, cable harnesses, and box builds which are used in safety-critical systems such as cockpits, inflight systems, landing systems, and medical diagnostic equipment.

Besides, SEBI also gave its final observations for IPO to Zaggle Prepaid Ocean Services and Healthvista India.

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