Everything You Should to Know About the Cyient DLM IPO

 

Introduction

In the world of investments, IPOs (Initial Public Offerings) provide a unique opportunity for individuals to become shareholders in promising companies. One such IPO that has caught the attention of investors and industry experts is the Cyient DLM IPO. In this article, we will explore the details of the Cyient DLM IPO, its background, growth potential, and how investors can participate in this exciting opportunity.

 

About Cyient DLM

Incorporated in 1993, Cyient DLM has established itself as a leading provider of electronic manufacturing services. With a focus on Build to Print (B2P) and Build to Specification (B2S) solutions, the company offers agile and flexible manufacturing services to clients worldwide.

Build to Print (B2P) Services

One of the key areas of specialization for Cyient DLM is its Build to Print (B2P) services. In this model, clients provide the design for the product, and Cyient DLM takes charge of the manufacturing process. By leveraging its advanced manufacturing capabilities and expertise, the company ensures efficient and precise execution of the design specifications.

The B2P approach offers clients the flexibility to focus on their core competencies while relying on Cyient DLM’s manufacturing expertise. It allows for seamless collaboration between the client and the manufacturing partner, ensuring that the end product meets the desired quality standards.

Build to Specification (B2S) Services

In addition to B2P services, Cyient DLM also offers Build to Specification (B2S) solutions. This involves clients providing detailed specifications and requirements for the product, and Cyient DLM customizes the manufacturing process accordingly.

With its extensive knowledge of various industries and manufacturing best practices, Cyient DLM can tailor its processes to meet specific client needs. The B2S services ensure that the manufactured products align precisely with the client’s vision and requirements.

Financial Highlights for Q4 FY23

Cyient, a global Engineering and Technology Solutions company, has announced its financial results for the quarter ended March 31, 2023, and the annual results for FY23. The following are the key financial highlights for Q4 FY23:

• Group revenue stood at INR 1,751.4 crores, showing a quarter-on-quarter (QoQ) growth of 8.2% and a year-on-year (YoY) growth of 48.3%.
• Consolidated Services Revenue reached INR 1448.9 crores, reflecting a QoQ growth of 5% and a YoY growth of 47.3%.
• Group CC Revenue Growth recorded a QoQ growth of 6.6% and a YoY growth of 39.1%.
• Normalized^ Group EBIT (Earnings Before Interest and Taxes) amounted to INR 249.4 crores, with a margin of 14.2%.
• Normalized^ PAT (Profit After Tax) reached INR 176 crores, exhibiting a QoQ growth of 8.1% and a YoY growth of 14.1%.
• Core Services* Order Intake witnessed a YoY growth of 13.3%.
• Offshoring for Core Services* reached 53.4%.

These financial results indicate positive growth and performance for Cyient during Q4 FY23. The company has achieved significant revenue growth, driven by consolidated services and sustained order intake for core services. The offshoring of core services has also played a crucial role in enhancing operational efficiency.

Cyient’s strong financial performance reflects its commitment to delivering engineering and technology solutions globally. The company’s focus on innovation, customer-centricity, and strategic partnerships has contributed to its continued success.

Overall, Cyient’s financial results for Q4 FY23 showcase its ability to adapt to evolving market dynamics and capitalize on growth opportunities.

Financial Highlights for FY23

Cyient, a global Engineering and Technology Solutions company, has reported its financial highlights for FY23, demonstrating a strong performance and growth. The following are the key financial highlights for the fiscal year:

• Group Revenue reached INR 6015.9 crores, showcasing an impressive YoY growth of 32.7%.
• Consolidated Services Revenue stood at INR 5095.7 crores, reflecting a substantial YoY growth of 35.8%.
• Normalized^ Group EBIT (Earnings Before Interest and Taxes) amounted to INR 767.7 crores, exhibiting a notable YoY growth of 21.9%.
• Normalized^ PAT (Profit After Tax) reached INR 565.1 crores, demonstrating a YoY growth of 8.2%.
• Core Services* Order Intake witnessed robust growth, expanding by 14.2% YoY.
• The company announced its highest-ever total dividend of INR 26 per share, rewarding shareholders for their trust and investment.

These financial highlights for FY23 highlight Cyient’s ability to drive revenue growth and deliver strong financial performance. The company’s consolidated services revenue has shown significant growth, driven by increased order intake for core services. The continued focus on operational excellence and customer satisfaction has contributed to Cyient’s success.

The robust growth in Group Revenue and Normalized EBIT signifies Cyient’s ability to navigate market challenges and capitalize on emerging opportunities. Furthermore, the increase in dividend payout demonstrates the company’s commitment to delivering value to its shareholders.

Cyient’s performance in FY23 reaffirms its position as a leading Engineering and Technology Solutions company. Through innovation, strategic investments, and a customer-centric approach, Cyient continues to drive sustainable growth and create long-term value for its stakeholders.

 

Reasons for Cyient DLM IPO

The decision to go public through an IPO is driven by various factors. For Cyient DLM IPO, the primary reasons for opting for an IPO include:

• Capital Infusion: By going public, Cyient DLM can raise significant funds from the market, enabling it to invest in research and development, expand its manufacturing capabilities, explore new market segments, and pursue strategic acquisitions.
• Enhanced Visibility: Being a publicly listed company increases the visibility and credibility of Cyient DLM in the industry. It can attract new customers, partnerships, and collaborations, leading to further growth opportunities.
• Liquidity for Stakeholders: The Cyient DLM IPO provides an exit opportunity for existing shareholders and employees who hold equity in the company, allowing them to realize their investments and create wealth.

 

Cyient DLM IPO Details

Here are some key details regarding the Cyient DLM IPO:

• Offering Type: Initial Public Offering (IPO)
• Issuer: Cyient DLM
• Listing Exchange: 10th Jul’23
• Offering Size: 56 Lot Size
• Price Range: Rs. 256.00 – Rs. 265.00
• Bidding Date: 27 Jun’23 to 30 Jun’23
• Minimum Investment: Rs. 14000/-
• IPO Issue Size: 592.00 CR

Cyient DLM IPO Application Details:

• Apply as regular: Pricing Range Rs. 250.00 to 265.00 & and you can apply up to Rs. 2 Lakh.
• Apply as Employee: Pricing Range Rs. 235.00 to 250.00 and benefits Rs. 15.00 discount.

Subscription Status as on 30th Jun’23:

• Qualified institutional Buyers – 90.44x
• Non-Institutional Investor – 45.05x
• Retail Individual Investor – 49.20x
• Employees – 2.45x
• Total Subscriptions – 67.30x

 

Cyient DLM IPO: Risks and Challenges

While the Cyient DLM IPO presents significant opportunities, it is crucial to consider the associated risks and challenges. Some of these include:

• Market Volatility: The stock market is subject to fluctuations, and the price of Cyient DLM shares may be influenced by various market factors beyond the company’s control.
• Competition: The engineering and manufacturing services sector is highly competitive, and Cyient DLM faces competition from established players as well as emerging startups.
• Regulatory Environment: Changes in regulatory policies and compliance requirements can impact Cyient DLM’s operations, financial performance, and market outlook.

 

Conclusion

The Cyient DLM IPO represents a significant opportunity for investors to become part of a leading design-led manufacturing company. With its strong background, growth potential, and a strategic focus on digital transformation, Cyient DLM is poised for an exciting future. Investors interested in participating in the IPO should gather the necessary information, consult with experts, and make informed investment decisions.

FAQs:

What is the process of selling Cyient DLM IPO shares after the listing?

Ans. After the listing, you can sell your Cyient DLM IPO shares through your trading account. You can place sell orders through your broker or online trading platform, specifying the number of shares you wish to sell and the desired price. The execution of the sell order will depend on market conditions and demand for the shares.

How can I stay updated on the Cyient DLM IPO and related information?

Ans. To stay updated on the Cyient DLM IPO, you can regularly check the official website of the company, stock exchange announcements, and financial news platforms. Additionally, you can subscribe to newsletters or alerts provided by financial institutions and brokerage firms to receive timely updates on the IPO and related details.

 

 

By following the outlined steps and considering the risks and challenges, investors can make informed decisions regarding their participation in the Cyient DLM IPO. It is essential to conduct thorough research and seek professional advice to maximize the potential benefits of this investment opportunity.