Established in 1993, Cyient DLM Limited provides integrated Electronics Manufacturing Services (EMS) and solutions with a focus on the entire life cycle of a product, including design, build and maintenance.
The product portfolio of Cyient DLM Limited consists of:
- Printed circuit board (PCB) and assembly(PCBA)
- Cable harnesses
- Box builds which are used in safety critical systems such as cockpits, inflight systems, landing systems, and medical diagnostic equipment.
Break up of Product-wise contribution to revenue in FY23 (%)
| Product | FY23 |
|---|---|
| PCBA | 62.62 |
| Box build | 32.41 |
| Cable harness | 1.37 |
| Others | 3.6 |
About the industry:
Growing at the fastest rate among all countries at a CAGR of 32.3%, The India EMS is a sizable industry, contributing to 2.2% (USD 20 billion) of the global EMS market in CY2022 and is expected to contribute 7.0% (USD 80 billion) of the global EMS market in CY2026 mainly driven by rising labor costs in other parts of the world and a trend among large Original Equipment Manufacturers(OEMs) to outsource manufacturing rather than invest in their own infrastructure.
The public offer of Cyient DLM Limited includes a fresh offer of equity shares aggregating up to Rs. 592 crores.
Break-up of industry- wise revenue from operations (%)
| Industry | FY23 | FY22 | FY21 |
|---|---|---|---|
| Aerospace | 20 | 14.1 | 15.1 |
| Defense | 37.6 | 46.8 | 42 |
| Medical Technology | 16.2 | 22.4 | 29.5 |
| Industrial | 25 | 14.5 | 11.4 |
| Others | 1 | 2.2 | 1.9 |
Objects of the issue and proceeds utilization
| Purpose | Proceeds (â‚ą crores) |
|---|---|
| Funding incremental working capital requirements | 291 |
| Funding capital expenditure | 43.5 |
| Repayment/prepayment of certain borrowings | 161 |
| Achieving inorganic growth through acquisitions | 70 |
| General corporate purposes | Balance |
.
Financial information
| Financial Year | Total Assets (â‚ą crores) | Total Revenue (â‚ą crores) | Profit After Tax (â‚ą crores) | EBITDA (â‚ą crores) |
|---|---|---|---|---|
| March 31, 2021 | 645 | 636.9 | 11.8 | 45.9 |
| March 31, 2022 | 776.9 | 728.4 | 39.7 | 84 |
| March 31, 2023 | 1104.7 | 838.3 | 31.7 | 87.7 |
Risk factors to consider:
Concentration risk: Top 10 customers constituted 91.08% of total revenue from operations in FY23.
Higher receivables: As at March 31, 2023, Trade Receivables were 161 Crore. Any loss of key customers or any defaults or delays in payment by a significant portion of customers could have a material adverse effect on business, results of operations, financial condition and cash flows.
In Fiscal 2023, 59.71% of total revenue came from geographical locations outside India. The foreign exchange fluctuations may adversely affect profitability.
The Capacity utilization in last 3 years is lower in comparison to other manufacturing companies
Higher dependency on few suppliers: Cost of raw materials consumed attributed to our top 5 and top 10 suppliers constituted 30.78% and 43.02% respectively, of o total cost of raw materials consumed. Any delay, shortage, interruption, reduction in the supply of or volatility in the prices of raw materials may have a material adverse effect on the business.
Important information regarding the IPO
| Issue Period | 27th June to 30th June 2023 |
|---|---|
| Price Band | â‚ą 250 - 265 |
| Minimum Bid Quantity | 56 and multiples thereof |
| Finalization of Allotment | 5th July 2023 |
| Initiation of Refunds | 6th July 2023 |
| Credit of Shares | 7th July 2023 |
| Date of Listing | 10th July 2023 |
| Mandate end date | 15th July 2023 |
| Anchor Investors Lock-In End Date | 30th July 2023 |
How to apply to the Cyient DLM Limited IPO?
You can apply for the Cyient DLM Limited IPO using any supported UPI app by following two steps:
- Enter your bid on Kite
- Accept the UPI mandate on your phone
On acceptance of the mandate, the bid amount will get blocked in your bank account. Click here to learn more.
How to check the allotment status for Cyient DLM Limited IPO?
You can check the allotment status for the Cyient DLM Limited IPO on the website of the Registrar and Transfer agent.
Alternatively, you can also check the allotment status on the NSE website.
