Global engineering and technology solutions company Cyient Ltd. on Tuesday announced that its subsidiary, Cyient DLM Ltd., has filed its Draft Red Herring Prospectus on January 9 with the Securities and Exchange Board of India (SEBI) for its proposed initial public offer (IPO).

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The IPO will comprise of a fresh issue of equity shares worth Rs 740 crore from Cyient DLM. The unit can further issue equity shares worth Rs 148 crore at its discretion in consultation with book-running lead managers and as permitted under applicable law.

The issue may comprise a reservation for eligible employees, and a reservation for eligible Cyient Shareholders.

The company had spun off its design-led manufacturing (DLM) into a separate division, Cyient DLM. The company in November appointed a new Chief Executive Officer (CEO) and a Chief Operating Officer for Cyient DLM to strengthen its leadership. The DLM business contributes to 15 percent of Cyient's topline.

Cyient is a leading global engineering, manufacturing, and digital technology solutions company. It provides services and solutions to a diversified base of over 300 customers, including 29 Fortune 500 companies, across multiple industries.

Shares of Cyient are currently trading 1.5 percent higher at Rs 842.65.

Also Read: Cyient seeks to spin-off a unit but wants to remain involved in it too — here's why