Cyient DLM IPO: Subscription status, GMP, price, review, other details. Should you apply?

Cyient DLM Ltd’s initial public offering (IPO) has opened for bidding today, and the book build issue will be available to subscribers until the 30th of June 2023, or until Friday of this week. The Cyient DLM IPO price band has been set by the business at $250 to $265 per equity share. The electronic manufacturing services provider expects to raise 592 crore through this public offering, which will be funded by the issuance of new 22,339,623 shares of the firm. Meanwhile, Cyient DLM shares have become available in the grey market ahead of the public offering. According to market experts, shares of Cyient DLM Ltd are currently offered in the grey market at a premium of 100.

Cyient DLM IPO GMP today

According to market experts, Cyient DLM IPO grey market premium (GMP) is 100 today, down from 110 on Monday. According to market watchers, the drop was mostly caused by negative global market sentiment. According to them, the Indian stock market traded sideways to lower on Monday after falling on Thursday and Friday. As a result, the secondary market mood weighed on grey market attitudes on the Cyient DLM IPO. According to them, the small price band may attract a significant number of investors, and the grey market atmosphere may rise further in the next sessions.

What does this GMP mean?

According to market experts, Cyient DLM IPO GMP today is 100, which suggests the grey market expects Cyient DLM IPO listing price to be around 365 (265 + 100), which is around 35% higher than its price band of 250 to 265 apiece.

Cyient DLM IPO subscription status

Cyient DLM IPO had been subscribed 1.75 times by 03:18 PM on day one of bidding, while its retail part had been subscribed 6.96 times. 

Cyient DLM IPO review

Reliance Securities assigned a ‘buy’ rating to Cyient DLM’s IPO, stating, “On FY23 annualised financials, the IPO is valued at 66.2x P/E, 25.6x EV/EBITDA, and 2.7x EV/Sales, at the upper price band.” The worldwide EMS market is seeing rapid expansion. In 2022, India’s EMS market will contribute 2.2% ($20 billion) of the worldwide EMS market and will be the fastest growing among all countries, with a CAGR of 32.3%. It is estimated to contribute 7% ($80 billion) of the worldwide EMS market in 2026, allowing the company to expand further. Given the issue’s solid commercial prospects, robust financials, diverse product mix, tailwinds from a solutions-oriented strategy, client-focused service, and track record of dependability, we suggest SUBSCRIBE.”

Ventura Securities said of the company’s financials, “The company is a leading EMS provider in India, specialising in electronics solutions for safety and mission-critical applications.” Competitors face entry difficulties due to its strong client relationships and competence in regulated areas. The company provides complicated PCBs and end-to-end solutions with advanced capabilities and deep client interaction. Its knowledge in safety-critical electronic systems distinguishes it in the market. The company’s competitive advantage is aided by the industry’s high entry costs and stringent regulations.”

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Choice Broking offered the following five reasons why you should apply for the Cyient DLM IPO:

1. Capability to provide comprehensive engineering solutions across the product value chain;

2. Due to its technological competence, competencies in safety-critical electronics in highly regulated sectors and customer involvement, competitors face substantial entry barriers.

3. Order book is robust and sector-leading, with marquee customers with whom it has long-standing ties as their preferred partner.

4. Manufacturing infrastructure, demanding quality standards, broad in-house skills, and a strong supply chain enable it to provide clients with high-quality end-to-end integrated solutions; and

5. Cyient Ltd., the promoter’s parent company, has a long history of industry competence, as well as an experienced board and senior management team.

Other important Cyient DLM IPO details

The public issue is proposed for listing on both the BSE and the NSE, with a projected share listing date of July 10, 2023. The Cyient DLM IPO will most likely be allotted on July 5, 2023. KFin Technologies Limited has been selected as the IPO’s official registrar.