Shares of Cyient DLM made a strong debut on Dalal Street today as the company got listed at Rs 403 on NSE, a premium of 52% against its issue price of Rs 265 apiece. Similarly, the stock was listed at a premium of 51% at Rs 401 on the BSE. The stock rallied further post-listing to touch an intraday high of Rs 409 on NSE
Ahead of its listing, shares of Cyient DLM were commanding a grey market premium of Rs 160-165 per share, about 60% higher than its issue price of Rs 265 apiece. Cyient DLM GMP was around Rs 130-135 last week on Friday
Cyient DLM IPO received a strong response from the investors, and was overall subscribed 71.35 times. The issue was open for subscription between June 27-30 in the price range of Rs 250-265 per share. The quota reserved for QIBs was subscribed 95.87 times, while the portion for NIIs was booked 47.75 times. The portion for retail investors was subscribed 52.17 times, while the portion for employees was booked only 2.60 times
Incorporated in 1993, Cyient DLM provides Electronic Manufacturing Services (EMS) as build-to-print (B2P) and build-to-specification (B2S) services including product design, and flexible manufacturing services tailored to meet their specific requirements. Cyient DLM offers several value-added and after-market services to customers, which include global original equipment manufacturers in the aerospace and defence, medical technology and industrial sectors
Most brokerage houses recommended subscribing to IPO, citing strong business prospects, healthy financials, a diversified product mix, and reasonable valuations compared to industry peers. "Considering the strong business prospects, healthy financials, diversified product mix, tailwinds on the back of solutions-oriented approach, client-focused service and track record of reliability, we recommend subscribe to the issue," Reliance Securities had said
"Cyient DLM is a fundamentally strong company, has a strong track record of growth, and is well-positioned to benefit from the growing demand for digital manufacturing solutions. We will not recommend a fresh Buy at this level. However, existing investors can hold the shares for the long term with a stop loss at 362.7, as the company has good growth prospects," said Anubhuti Mishra, Equity Research Analyst at Swastika Investmart Ltd
"Cyient DLM share price listing above 50% premium is on the expected lines of the markets and we are expecting this stock to further move upside. It may go up to Rs 470 to Rs 480 per share levels. So, those who have been allocated Cyient DLM shares during allotment, are advised to hold the scrip for Rs 470 to Rs 480 target for the near term. However, they must maintain a trailing stop loss at Rs 377 apiece levels," said Vaibhav Kaushik, Research Analyst at GCL Broking said
Fresh entry in Cyient DLM is not advisable at current levels. "One should wait for some correction as Rs 380 to Rs 390 would be a good supply zone for fresh investors. If the stock eases and comes in this range, then one can accumulate more scrips in this zone while fresh entry can also be initiated with stop loss at Rs 377 apiece levels for near term target of Rs 470 to Rs 480 apiece," said Vaibhav Kaushik of GCL Broking said
Globally, the EMS market is seeing strong growth. India’s EMS market contributed 2.2% ($20 billion) to the global market in 2022 and is the fastest growing at a CAGR of 32.3%. It is expected to contribute 7% ($80 billion) of the global EMS market in 2026 which will aid the company to grow further
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