
Shares of IT firm Cyient Ltd will be in focus on Wednesday morning as its arm Cyient DLM received approval for the proposal initial public offer (IPO) by ROC. The issue will open on June 27 and close on June 30. The price band for the issue, which will be decided by Cyient DLM in consultation with the book running lead managers. It will be advertised at least two working days prior to the issue opening date, Cyient informed stock exchanges.
In a filing to BSE, Cyient said: "With reference to our earlier announcement dated January 10, 2023 in relation to the proposed initial public offering of equity shares of our subsidiary, Cyient DLM Limited, we have been informed by Cyient DLM that the red herring prospectus dated June 19, 2023 filed by Cyient DLM with the Registrar of Companies, Telangana at Hyderabad in relation to the Issue has been approved by the RoC on June 20, 2023," Cyient said.
Cyient DLM, a subsidiary of Cyient Ltd, is an integrated electronic manufacturing service (EMS) and solutions provider. It is involved in designing, manufacturing, testing and providing certification support.
"The issue shall open for subscription to public on Tuesday, June 27, 2023 and shall close on Friday, June 30, 2023. Further, we wish to inform you that the price band for the Issue, which will be decided by Cyient DLM in consultation with the book running lead managers, will be advertised at least two working days prior to the Issue opening date," it said.
The IPO would comprise of a fresh issue of shares aggregating up to Rs 740 crore. The company has reserved 75 per cent of the net offer for the qualified institutional bidders (QIBs), whereas non-institutional bidders would get 15 per cent of the net offer. The remaining 10 per cent of shares would be allocated to retail investors.
The listing of the IPO is likely by July 10. Syrma SGS Technology, Kaynes Technology India and DCX Systems are seen as some of the listed peers of the Cyient arm.
Axis Capital and JM Financial are the book-running lead managers to the issue, whereas KFin Technologies has been appointed as the registrar to the issue. The stock would be listed at both BSE and NSE.
"Cyient DLM, in consultation with the book-running lead managers, may consider a further issue of specified securities, including by way of a private placement, rights issue, preferential offer, or any other method at its discretion, as may be permitted under applicable laws for an amount aggregating up to Rs 148 crore, prior to the filing of the red herring prospectus with the registrar of companies," the company had informed in April.
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