Cyient DLM IPO subscribed 7.6x on day 2 even with tepid QIB demand

• The public issue of circuit board maker Cyient DLM was subscribed 7.6 times on day 2.
  
• The retail portion of the issue was subscribed 24 times over, while its QIB portion is yet to be fully subscribed.
  
• Non-institutional investors also showed good interest in the issue as this portion was subscribed over 11 times.
  

The public issue of circuit board maker Cyient DLM was subscribed 7.6 times over the shares on offer, on Wednesday, which is the second day of the issue.

While the qualified institutional buy portion is yet to be fully subscribed, the retail portion saw bids amounting to 24 times the shares on offer. Non institutional investors also showed good response to the issue.

IdeaForge’s IPO, which closed on Wednesday, was subscribed 50 times over as retail investors and non-institutional investors lapped up the shares – both these categories were subscribed 64 times the shares on offer.

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 revenue went up by 15% in FY23 to ₹832 as compared to FY22. Its FY23 net profit however fell by 20% to ₹31.7 crore compared to the year before. The IPO is a complete offer for sale, and 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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