Are you looking for information about the upcoming Cyient DLM IPO? If so, you’ve come to the right place! In this blog post, we’ll provide you with all the information you need to know about the Cyient DLM IPO, including the IPO date, price band details, market lot, allotment and listing dates, and IPO form. We’ll also provide a review of the IPO to help you decide whether or not to apply. So, let’s get started!
Cyient DLM IPO Review (Apply or Not)
Cyient DLM Ltd is India’s leading provider of engineering and digital services. With a mission to 'engage, inspire, and enable global customers to realize their vision', the company has established itself as one of the foremost players in the industry.
The upcoming Cyient DLM IPO is expected to be one of the most highly anticipated IPOs of 2021. The company aims to raise ₹592 crores through their issue, which will be utilized for repayment or pre-payment of certain borrowings and general corporate purposes.
For investors looking for high returns in a short period, the Cyient DLM IPO might look like an attractive proposition. However, before investing it is important to evaluate the fundamentals of this company and analyze if it is indeed a good opportunity or not. To do so, investors must take into account several metrics such as financial performance over past years, customer base, competitive landscape, etc.
In terms of financial performance, Cyient DLM has consistently shown impressive figures over the past few years with revenue increasing at a CAGR (Compound Annual Growth Rate) of 21% from FY18-20. As per recent reports by CARE Ratings & Credit Analysis & Research Limited (CARE), Cyient DLM has maintained its profitability despite challenging economic conditions due to its diverse business model which includes both Engineering Services and Digital offerings offering clients greater value for money.
Furthermore, analyzing its customer base reveals that Cyient DLM’s client roster comprises Fortune 500 companies across sectors such as aerospace/defense manufacturing & automotive industries which bodes well for future growth prospects. Additionally, looking at the competitive landscape shows that there are no direct competitors in this space with similar capabilities which could limit competition going forward and increase market share opportunities for this company.
All these factors taken together suggest that Cyient DLM offers an attractive investment opportunity in terms of growth potential with limited downside risk making it ideal for investors who are looking to maximize returns from their investments within a relatively short time frame.
Brokerage Firm IPO Review
When it comes to researching and reviewing an IPO, the opinion of a brokerage firm can be invaluable. In the case of Cyient DLM’s upcoming IPO, understanding the views of some major players in the market can help investors make an informed decision.
Analysts at ICICI Direct have given a positive review, noting that this issue is fairly priced for its long-term potential. They also point out that the company has a solid history of generating consistent returns on equity (RoE). They feel that Cyient DLM is well-positioned to benefit from increased digital transformation investments in India over time.
Motilal Oswal on the other hand has given a ‘neutral’ rating to this IPO, citing concerns about its high promoter pledge and low return ratios compared to its peers. They feel that these factors could weigh on investor sentiment in the long run.
HDFC Securities remains bullish on Cyient DLM, citing strong fundamentals such as its robust order book and high operating margins. They further note that its revenue growth has been consistently strong since FY18 and they recommend subscribing to this IPO with a medium-term investment horizon.
Kotak Securities believes that Cyient DLM is well positioned to benefit from increasing digitalization in India but they caution investors against investing too heavily due to their concerns about promoter pledging and relatively weak return ratios compared to peers.
Overall, while opinions vary among brokerage firms, there appears to be consensus among them when it comes to Cyient DLM’s potential for long-term growth due to its strong fundamentals and increasing digital spending in India. Investors should take into account all points raised by experts before making any decisions regarding this particular IPO
Cyient DLM IPO Date & Price Band Details
Cyient DLM's Initial Public Offering (IPO) is set to hit the market on June 27 and will close on June 30. The company has set a price band of Rs. 545 - 550 per equity share, with each share having a face value of Rs. 10. This price band indicates that the IPO is fairly priced in comparison to its peers and should offer attractive returns for investors over the long-term period.
The allotment of shares will be based on a lot size of 13 shares with an additional one lot for fractional shares resulting from bids made at cut-off price or above it. Retail investors can apply for up to 13 lots while Qualified Institutional Bidders (QIBs) can bid for up to 75% of the issue size and High Networth Individuals (HNIs) can bid for up to 15%. The minimum application amount is Rs 6,750 and in multiples of Rs 6,750 thereafter.
The listing date for Cyient DLM’s IPO has not yet been announced but usually takes place 8-10 days after the closure of the issue period. On the listing day, retail investors who have applied in the IPO will be eligible to receive allotment notices or ASBA confirmation messages through their registrar/depository participant accounts or via e-mail/SMS alerts from their banks regarding the credit of shares into their Demat accounts. Investors are advised to keep track of all these updates before making any decisions about investing in this particular IPO as there may be changes in terms and conditions as well as pricing before listing day arrives.
Cyient DLM IPO Market Lot
Cyient DLM's IPO market lot is 13 equity shares, with an additional one lot for fractional shares resulting from bids made at the cut-off price or above it. The minimum investment for the retail investor is Rs 6,750 and in multiples of Rs 6,750 thereafter. This means that investors need to bid for a minimum of 13 lots and can bid up to a maximum of 13 lots. It also implies that investors have the flexibility to bid for any number of lots they wish within this range. Investors should note that allotment will be done on a proportionate basis after taking into account all valid bids received by the company.
The lot size system provides investors with an opportunity to invest an amount they are comfortable with, without having to buy large chunks of shares which may be beyond their budget or risk tolerance levels. It also allows investors to diversify their investments across different stocks and sectors without worrying about paying high brokerage fees due to buying multiple small lots. Furthermore, it prevents them from investing too much in one particular stock by limiting the maximum number of lots that can be purchased at any given time.
Investors should also keep in mind that there could be differences between the market lot size and the board lot size as determined by exchanges like NSE and BSE. For instance, even if Cyient DLM's market lot size is set at 13 equity shares, NSE may decide to fix its board lot size at 10 equity shares depending on prevailing market conditions when trading begins post-IPO listing date. Therefore, investors should always check both sizes before deciding on their investmetor to avoid any confusion later on regarding their holdings or trades made in Cyient DLM’s IPO.
Cyient DLM IPO Allotment & Listing Dates
Cyient DLM's allotment and listing dates have yet to be announced, but based on previous IPOs we can expect the allotment to take place within 8-10 working days of the closing date. The listing of Cyient DLM shares is likely to follow soon after the allotment date. On the day of listing, investors who have successfully subscribed to the IPO will be given their allotted shares which will begin trading on both NSE and BSE from that day onwards.
The allotment process for an IPO is done using a computerized system called ‘Book Building’ which allocates shares among different categories of investors such as Retail Individual Investors (RIIs), Qualified Institutional Buyers (QIBs) and High Net Worth Individuals (HNIs). This system ensures that all eligible applications are included in the final allotment and no application is missed out. Furthermore, it also allows market participants to determine the demand-supply ratio for a particular security at a given price level.
The Book Building system also helps in determining the final offer price band which is usually based on investor demand and supply as well as other market factors like the current trends in stock prices, industry sector performance, etc. Thus, investors should keep a close eye on any news related to Cyient DLM IPO in order to stay updated with any changes in its pricing structure or other details about its upcoming listing.
Finally, investors should note that after successful subscription in an IPO, they must wait until it gets listed before being able to sell their they need to plans important for them to plan their investments accordingly so that they can maximize returns from their investments without waiting too long for listing dates or missing out on good opportunities due to delayed listing dates.
Cyient DLM IPO Form
The Cyient DLM IPO form is available both online and offline. Investors can apply for the issue either through the NSE and BSE websites or through the ASBA (Application Supported by Blocked Amount) facility at their bank. The process of completing the IPO form is quite simple, requiring investors to fill in a few basic details such as personal information, contact details, PAN card number, bank account information, bid quantity, and bid price. Investors can also choose to apply through a broker or financial intermediary.
It is important that investors provide accurate information in their IPO forms to ensure timely allotment of shares and avoid any delay in listing shares on exchanges. Additionally, investors should cross-check all the details entered in the Cyient DLM IPO form before submitting it to avoid any errors. They should also make sure that they provide all required documents along with their applications such as KYC documents like PAN card, Aadhar card, or Voter ID card; Income proof; Bank statements; etc.
Once an investor has submitted their application form along with all required documents and payment for subscription amount (if opting for ASBA), they will receive an acknowledgment from their broker/bank containing details such as application number, category of investor (retail/QIB/HNI), date of submission, time stamp, etc. This acknowledgment serves as proof that the application has been successfully submitted by them and will be used for tracking allotment status after the closure of the bidding period.
Investors should keep a copy of this acknowledgment safe with them until they receive confirmation about the successful allotment of shares from their brokers/banks or exchanges after which they can discard it if they wish to do so. It is important that investors monitor news related to Cyient DLM's upcoming IPO closely through various sources like stock exchanges websites or news outlets to stay updated about any changes related to its listing date or closing date so that they don't miss out on any opportunities related to this particular issue.
Cyient DLM Company Financial Report
Cyient DLM is an engineering, design and digital solutions company based in Hyderabad, India. The company provides specialized services to the aerospace, transportation, energy, and medical device sectors. It also offers a range of other services such as digital enterprise solutions, data analytics, and business intelligence.
The company reported total assets worth ₹3,826 crores in 2020-21 with revenue from software services standing at ₹2,633 crores. Profit after tax for the same year stood at ₹159 crores while earnings before interest taxes depreciation and amortization (EBITDA) were recorded at ₹387 crores. In 2021-22 Cyient DLM reported total assets worth ₹4,049 crores with revenue from software services standing at ₹2,719 crore while net profit came in at ₹180 crore and EBITDA was recorded at ₹419 crore. This reflects a growth of 3% over 2020-21 figures.
In terms of cash flow management, the company has reported satisfactory results with positive operating cash flows for all three years—2018-19 to 2020-21—with cumulative free cash flows amounting to around ₹ 439 crore during this period. Cyient DLM’s liquidity position looks healthy with a current ratio of 1:1 as of FY2020-21 indicating its ability to meet short-term obligations easily without resorting to outside sources of funding or liquidating its investments. On the debt front, the company has long-term borrowings worth around Rs 753 crore while short-term loans stand at Rs 177 crore as of March 2021 showing a comfortable debt-equity ratio of 0.37:1 which is within the industry average and indicates manageable debt levels for the company going forward
Overall Cyient DLM seems to be in good financial health as reflected by its financial performance over last few years and robust liquidity position which will act as major positives going ahead especially given its plans for an IPO issue soon
Cyient DLM IPO Valuation – FY2022
Cyient DLM Limited is set to launch its initial public offering (IPO) in June 2021. This IPO will be valued at ₹592 crore and will be open for subscription from June 27 to June 30. The company's focus areas include providing engineering services, software development, and IT services among others.
The Cyient DLM IPO valuation for FY2022 takes into account the company’s current financial performance and future prospects. It is estimated that the company has a market capitalization of around INR 592 crores based on its current financials. Cyient DLM has reported an impressive net profit of Rs 8 crore in FY 2020-21 compared to a net loss of Rs 4 crore in FY 2019-20. This shows a vast improvement in the company’s financial situation which bodes well for its upcoming IPO.
The valuation also takes into account the company’s ability to capitalize on new opportunities in the engineering services sector as well as its potential to grow further with new technologies such as Artificial Intelligence (AI) and analytics. The company currently serves more than 300 customers across seven countries with highly specialized engineering solutions, giving it an edge over its competitors when it comes to doing business overseas.
Furthermore, Cyient DLM’s strong customer base of industry veterans gives it an added advantage when it comes to winning contracts from big enterprises such as Microsoft, Oracle, Infosys, and TCS amongst others. This gives confidence that their upcoming IPO will be successful given the trust factor associated with their name and experience in the market place.
In conclusion, Cyient DLM Ltd is well placed for a successful IPO due to its strong financial performance and ability to capitalize on new opportunities within the engineering services sector as well as gain from technological advancements such as AI and analytics. All these factors make it an attractive investment opportunity for investors looking for long-term returns from mid-cap stocks like this one
Peer Group
The peer group of Cyient DLM includes some of the most reputable companies in the engineering services sector. Companies such as L&T Technology Services, Cyient Ltd., and Mindtree are all part of this group. These companies are renowned for their cutting-edge technology solutions and innovative strategies that have enabled them to stay ahead of the competition.
L&T Technology Services is a leader in the engineering services sector, offering a wide range of services including product design & development, digital transformation, and analytics consulting. Their expertise in these fields has enabled them to provide superior quality services to their clients which makes it one of the top players in its industry.
Cyient Ltd., on the other hand, is an integrated IT service provider that specializes in providing end-to-end engineering solutions to its customers across various industries. Over the years they have established themselves as a reliable partner for Fortune 500 companies including Airbus, Microsoft, Oracle, and Siemens.
Mindtree is another prominent player in this space with its innovative approach towards tackling complex challenges faced by businesses today. They are able to leverage their deep technical know-how and extensive experience to provide highly customized solutions that meet each customer’s specific requirements.
These three companies set a high standard when it comes to providing quality engineering services in India and offers stiff competition to Cyient DLM when it comes to winning contracts from big enterprises. As such, investors should take into account the performance of these peers before investing in Cyient DLM’s IPO as they can use it as an indicator for how well Cyient DLM will perform in comparison once they hit public markets.
Company Promoters
The company promoters of Cyient DLM are Mr. Gautam Chand Jain, Mrs. Radhika Gautam Jain, and Mr. Sanjay Govind Dhande. They own approximately 16%, 9%, and 8% respectively of the company's pre-IPO shareholding in the company, making them major stakeholders in its success.
Mr. Gautam Chand Jain is an experienced businessman with over 30 years of experience in various fields including engineering services and real estate development. He has been the Managing Director (MD) of Cyient DLM since its inception and currently serves as the Chairman & Managing Director (CMD).
Mrs. Radhika Gautam Jain is a businesswoman with extensive experience in mergers & acquisitions, investments, and financial management. She has been involved with Cyient DLM since its early days as a consultant before taking up the role of Whole Time Director (WTD) in 2017.
Mr. Sanjay Govind Dhande is an alumnus of IIT Kanpur and Harvard Business School who served as the first full-time Chairman & Director General at IIT Kanpur from 2001 to 2007 before joining Cyient DLM as its Executive Vice-Chairman & Non-Executive Director in 2018. He also serves on various boards such as The National Stock Exchange (NSE), Bombay Stock Exchange (BSE), Institute for Defence Studies and Analyses (IDSA), etc., making him a valuable asset to Cyient DLM’s boardroom decisions.
The promoters have been instrumental in driving growth for Cyient DLM through their strategic decision-making capabilities and proven track record in developing successful businesses over the years; this makes them worthy candidates for investors looking to invest in a quality mid cap IPO like Cyient DLM’s upcoming IPO offering on June 27th, 2021 – June 30th 2021
Cyient DLM IPO Registrar
Cyient DLM IPO Registrar is Karvy Fintech Private Limited, a reputed corporate service provider. The registrar plays an important role in the successful completion of the IPO process and is responsible for ensuring that all necessary steps are taken to complete the offer. It also helps in handling any queries related to the IPO from potential investors, such as processing applications, allotment of shares, and refund of money.
Karvy Fintech Private Limited has handled several high-profile IPOs over the years and has a wealth of experience when it comes to offering services related to public offers. It plays an active role in assisting companies with listing on stock exchanges, compliance with regulatory requirements, and managing investor queries during an offering period. In addition, it specializes in providing support for post-IPO activities such as share transfer services, dividend payments, and other related services.
Karvy has been associated with many renowned companies such as Reliance Industries Ltd., Axis Bank Ltd., Lupin Ltd., HDFC Bank Ltd., Tata Motors Ltd., Vedanta Resources plc etc., making it a trusted name among corporate service providers. All these factors make Karvy Fintech Private Limited one of the most reliable partners for Cyient DLM’s IPO process.
Investors should be aware that there may be certain risks associated with investing in IPOs including price volatility and liquidity issues due to low trading volumes after listing on stock exchanges. Moreover, market conditions may cause an issue with regard to allotment or refunds of money during Cyient DLM’s public offer period which could further delay its listing date or affect its stock performance after listing on stock exchanges. Therefore, investors should consider all these factors before investing in Cyient DLM’s public offer period through Karvy Fintech Private Limited's platform.
Cyient DLM IPO Allotment Status Check
Investors applying for the Cyient DLM IPO can check their allotment status online. The process is quite simple and straightforward. All applicants have to do is log onto the registrar’s website, and enter their application details such as PAN number, bid lot size, and bank account details. Once these details are submitted, a unique application number will be generated which can be used to track the allotment status of the shares post-IPO. Investors can also check their allotment status via SMS or email by providing their PAN number, bid lot size, and bank account details as mentioned above.
Investors can also contact Karvy Fintech Private Limited directly through email or telephone for any inquiries related to the IPO allotment process. Karvy Fintech has an experienced team of customer support representatives who are available around the clock to assist investors with any queries they may have regarding their IPO application or share allotment status.
It is important to remember that even if an investor’s application is accepted it does not guarantee that they will get allotted shares in the company’s initial public offering (IPO). The actual allotment of shares depends on various factors such as oversubscription ratio and demand for shares in the market during that particular time period. Therefore investors should keep themselves updated with the latest developments in order to make an informed decision when investing in IPOs like Cyient DLM Ltd’s upcoming offering.
Cyient DLM IPO Lead Managers aka Merchant Bankers
Cyient DLM IPO Lead Managers aka Merchant Bankers are a key part of the successful launch of an Initial Public Offering (IPO) and Cyient DLM has selected some of the biggest names in investment banking to be its lead managers.
The lead manager for Cyient DLM is ICICI Securities Limited, one of India’s largest integrated financial services providers with a focus on equity markets, capital raising, trading, and risk management. ICICI Securities is a wholly owned subsidiary of ICICI Bank, one of India’s biggest private sector banks. The other two lead managers are SBI Capital Markets Limited and IIFL Securities Limited.
SBI Capital Markets Ltd (SBICAP) is the investment banking arm of State Bank of India (SBI), India's largest public sector bank offering a comprehensive range of capital market-related services including issue management, underwriting, and portfolio advisory services. IIFL Securities Limited is a subsidiary company of IIFL Holdings Ltd., which provides diversified financial services like retail broking & distribution, institutional broking, investment banking & wealth management through its various subsidiaries.
The role of the lead manager in an IPO is to coordinate all activities related to pricing, promotion and placement of shares being offered to investors during the new issue process. They will also be responsible for preparing the prospectus for submission to stock exchanges and regulators like SEBI and liaising with them until permission to list is granted. This includes evaluating company performance data as well as assessing market conditions before arriving at an appropriate price band for the new issue’s shares. They will then work closely with their syndicate members to place the shares in order to ensure that maximum value is achieved for those participating in the issue process.
Company Address
Cyient Limited (Cyient DLM) is a technology company that provides engineering design, manufacturing, network services, and digital solutions to global organizations in the aerospace, automotive, telecommunications, energy and medical devices industries. It is headquartered in Hyderabad, India with offices in the United States of America, Mexico, and Brazil.
The company was founded in 1991 as Infotech Enterprises Limited by Dr. BVR Mohan Reddy. In 2015 it changed its name to Cyient Limited after it acquired Blue Star Infotech Ltd., a software development firm specializing in providing enterprise-wide solutions for network services and digital transformation initiatives.
With more than 14000 employees globally, Cyient DLM is a leading provider of engineering design services including mechanical design and analysis; electrical wiring harness design; 3D modeling; CAD/CAM/CAE engineering; product lifecycle management; industrial automation; and IT infrastructure support. The company also offers specialized outsourced services such as IT consulting & implementation services for enterprise software products such as SAP ERP systems, SharePoint server implementations, and Oracle EBS systems.
Cyient DLM is also one of the largest manufacturers of engineered parts & components for the aerospace industry with facilities located across India & USA. It produces over 20000 different types of machined components from aluminum forgings to complex assemblies used on aircrafts like Airbus A320NEO & Boeing 787 Dreamliner.
The company has completed several acquisitions over the years including that of Design Solutions Inc., an American engineering firm specializing in product development & optimization solutions which have helped them expand their offerings into new markets such as the automotive industry. In addition to providing aerospace engineering services, they are also involved in developing autonomous driving solutions for cars & other vehicles on behalf of several major automakers around the world including Audi AG & BMW Group.
Cyient DLM IPO FAQs
Q. When is the Cyient DLM IPO date?
A. The Cyient DLM IPO date is fixed and will hit the market on June 27, 2021, and close on June 30, 2021.
Q. How much money does the Cyient DLM IPO aim to raise?
A. The Cyient DLM IPO aims to raise around ₹592 crores via an issue of ₹10 per share.
Q. What are the quotas for retail, QIB, and HNI investors in the Cyient DLM IPO?
A. The quota set up for retail investors in this IPO is 10%, QIB is 75%, and HNI is 15%.
Q. Is there a price band for the Cyient DLM IPO?
A. Yes, the price band has been set at ₹818-820 per share for this IPO.
Q. What are some of the risks associated with investing in an initial public offering like Cyient DLM's?
A. As with any investment, there are associated risks when investing in an Initial Public Offering (IPO). These include stock market volatility that can affect pricing, lack of liquidity as shares may not be easily traded after listing, and changes in regulations which can cause disruption to companies’ operations or profitability. Additionally, IPOs typically have a lock-in period during which no trading activity can take place meaning investors must wait before they can sell their shares if needed
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