Cyient DLM IPO subscribed 2.65X on day 1 with good response from retail investors

• The public issue of circuit board maker Cyient DLM was subscribed 2.65 times on day 1.
  
• The retail portion of the issue was subscribed nine times over, its QIB portion is yet to be fully subscribed.
  
• Non-institutional investors also showed good interest in the issue as this portion was subscribed by 3.57 times.
  

The public issue of circuit board maker Cyient DLM was subscribed 2.65 times the number of shares on offer, on the first day of issue on Tuesday. Like the public issue of IdeaForge, this issue too saw tepid response from qualified institutional buyers while retail investors were active in bidding for the shares.

While the retail portion of the issue was subscribed nine times over, its QIB portion is yet to be fully subscribed. Non-institutional investors also showed good interest in the issue as this portion was subscribed by 3.57 times.

IdeaForge, which is also currently open for subscription, was subscribed 6.38 times over the shares on offer, with a spectacular response from retail investors.

Source: BSE

About the company
The company manufactures printed circuit boards, cable harnesses, and box builds used in aviation and medical diagnostic sectors. The price band of the issue has been fixed at ₹250-265, and it plans to raise as much as ₹592 crore via the public issue.

It has already raised ₹259 crore from 20 anchor investors like ICICI Prudential, HDFC MF, Tata Infrastructure Fund, Societe Generale, LIC MF and more.

Its revenues went up by 15 percent in FY23 to ₹832 as compared to FY22. Its FY23 net profit however fell by 20 percent to ₹31.7 crore as compared to the year before. The IPO is a complete offer for sale, and the it intends to use the net proceeds towards working capital, capex, debt repayment, and general corporate purposes

Funded via IPO proceeds, acquisitions can bring its manufacturing operations closer to customers and increase wallet share, a critical monitorable, says Anand Rathi which gave a ‘subscribe’ rating on the IPO.

The IPO has been commanding a grey market premium of ₹100, as per media reports. Grey market premium (GMP) is the premium at which an unlisted stock is traded in an unofficial market.

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