Cyient DLM
Book Building issueMainboard₹592 Cr issue
+51.32%
Listing gain over issue price
Issue size
₹592 Cr
1 lot at cut-off
₹14,840
Lot size
56shares
Open
27 Jun 2023
Close
30 Jun 2023
Allotment
04 Jul 2023
Listing
10 Jul 2023
Listing performance
Issue price
₹265
Listed at
₹401
Listing-day close
₹420.75
Latest price
₹753.50
Close on 23 Oct 2026
Listing gain
+51.32%
Return since issue
+184.34%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 27 Jun 2023 – 30 Jun 2023
- Listing date
- 10 Jul 2023
- Face value
- ₹10 per share
- Issue price
- ₹265 per share
- Lot size
- 56 shares
- Issue type
- Book Building issue
- Total issue size
- ₹592 Cr
- Market cap at offer price
- ₹2,101 Cr
- Promoter holding
- 92.84% → 66.65% pre-issue → post-issue
- ISIN
- INE055S01018
- Registrar
- Kfin Technologies Ltd.
- Lead managers
- Axis Capital Ltd.
- Registered office
- 3 rd Floor, Plot No.11, Software Units Layout, Infocity, Madhapur, Telangana
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 97,98,113 | — | — |
Application size
Minimum 56 shares per lot, in multiples, at ₹265
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 56 | ₹14,840 |
| Retail (max) | 13 | 728 | ₹1,92,920 |
| S-HNI (min) | 14 | 784 | ₹2,07,760 |
| S-HNI (max) | 67 | 3,752 | ₹9,94,280 |
| B-HNI (min) | 68 | 3,808 | ₹10,09,120 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
97,98,113
Anchor portion
₹260 Cr
at ₹265 per share
Valuation and performance
Valuation at offer price
₹265 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 10.07 | — |
| P/E (×) | 26.32 | — |
| Market cap | — | ₹2,101 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 30.45%
- ROCE
- 13.48%
- PAT margin
- 4.00%
- NAV per share
- ₹48.33
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Cyient DLM
Cyient DLM Limited was incorporated on June 30, 1993 and has over 22 years of experience in developing high-mix, low-to-medium volume highly complex systems. The company operates as an integrated EMS provider offering printed circuit board (PCB) assembly (PCBA), cable harnesses, and box builds primarily for safety-critical systems such as cockpits, inflight systems, landing systems, and medical diagnostic equipment. The company provides solutions as Build-to-Print (B2P) and Build-to-Specification (B2S) services. As of March 31, 2023, the company had revenue from operations of ₹8,320.33 million with 62.63% from PCBA, 32.41% from Box Builds, and 1.37% from Cable Harnesses. The company operates three manufacturing facilities in Karnataka and Telangana, with 90.75% of revenue attributable to the Mysuru facility. The company serves marquee customers including Honeywell International Inc., Thales Global Services S.A.S, ABB Inc., Bharat Electronics Limited, and Molbio Diagnostics Private Limited, with top 10 customers accounting for 91.08% of revenue for Fiscal 2023.
Company Analysis
from RHPCyient DLM Limited is an integrated Electronics Manufacturing Services (EMS) and solutions provider focused on design, build, and maintenance of high-mix, low-to-medium volume complex systems for aerospace, defence, medical technology, and industrial sectors.
Cyient DLM Limited was incorporated on June 30, 1993 and has over 22 years of experience in developing high-mix, low-to-medium volume highly complex systems. The company operates as an integrated EMS provider offering printed circuit board (PCB) assembly (PCBA), cable harnesses, and box builds primarily for safety-critical systems such as cockpits, inflight systems, landing systems, and medical diagnostic equipment. The company provides solutions as Build-to-Print (B2P) and Build-to-Specification (B2S) services. As of March 31, 2023, the company had revenue from operations of ₹8,320.33 million with 62.63% from PCBA, 32.41% from Box Builds, and 1.37% from Cable Harnesses. The company operates three manufacturing facilities in Karnataka and Telangana, with 90.75% of revenue attributable to the Mysuru facility. The company serves marquee customers including Honeywell International Inc., Thales Global Services S.A.S, ABB Inc., Bharat Electronics Limited, and Molbio Diagnostics Private Limited, with top 10 customers accounting for 91.08% of revenue for Fiscal 2023.
AerospaceDefenceMedical TechnologyIndustrialElectronics Manufacturing Services
Objects of the Issue
- Funding incremental working capital requirements of our Company ₹2,910.90 million p.25
- Funding capital expenditure of our Company ₹435.72 million p.25
- Repayment/prepayment, in part or full, of certain of our borrowings ₹1,609.11 million p.25
- Achieving inorganic growth through acquisitions ₹700.00 million p.25
- General corporate purposes p.25
- Funding incremental working capital requirements of our Company ₹2,910.90 million p.58
- Funding capital expenditure of our Company ₹435.72 million p.50
- Repayment/prepayment, in part or full, of certain of our borrowings ₹1,609.11 million p.49
- Achieving inorganic growth through acquisitions ₹700.00 million p.55
- General corporate purposes p.50
- Funding capital expenditure requirements for purchase of plant and machinery for manufacturing of PCB assembly, cable harnesses and box builds ₹435.72 million p.97
- Repayment/prepayment of certain borrowings ₹1,609.11 million p.102
- Achieving inorganic growth through acquisitions and/or investments ₹700.00 million p.104
- General corporate purposes Not specified - balance of Net Proceeds, subject to not exceeding 25% of gross proceeds p.105
- Repayment of borrowings ₹1,609.11 million p.309
- Issue Related Expenses p.336
Issue Structure
- Total Issue
- ₹5,920.00 million (Fresh Issue only)
- Fresh Issue
- ₹5,920.00 million (adjusted after Pre-IPO Placement of 4,075,471 Equity Shares aggregating ₹1,080.00 million)
- Offer for Sale
- Not applicable
- Price Band
- [●] per Equity Share (Floor Price ₹[●], Cap Price ₹[●])
- Lot Size
- [●] Equity Shares (minimum Bid Lot)
- Face Value
- ₹10 per Equity Share
Business Model
The company generates revenue through Electronics Manufacturing Services (EMS) providing PCBA manufacturing, cable harness assembly, and box build assembly services on a Build-to-Print (B2P) and Build-to-Specification (B2S) basis to customers in aerospace, defence, medical technology, and industrial sectors. In Fiscal 2023, B2P solutions accounted for 99.80% of total revenue from operations.
Business Segments
Manufacturing of PCBA, cable harnesses and box builds for aerospace applications including cockpits, inflight systems, and landing systems
Manufacturing of PCBA, cable harnesses and box builds for defence applications
Manufacturing of PCBA, cable harnesses and box builds for medical diagnostic equipment and medical technology applications
Manufacturing of PCBA, cable harnesses and box builds for industrial applications
Electronics manufacturing for aerospace applications including cockpit display units, flight management systems, surveillance radar systems, and communication/navigation systems
Electronics manufacturing for defence applications and equipment
Electronics manufacturing for medical devices and patient monitoring equipment
Electronics manufacturing for industrial applications and automation
Manufacture of defence electronics including RADAR electronics, communication, computers, power supply, ground equipment, ground radio communication systems, defence avionics, and guided missile control systems
Manufacture of industrial electronics including oil and gas measurement equipment, control electronics, fuel dispensing controllers, temperature controllers, IoT controllers, and industrial automation products
Manufacture of aerospace electronics including cockpit avionics, engine control systems, aircraft lighting, GPS systems, auxiliary power supply units, and door control units
Manufacture of medical electronics including patient monitoring systems, X-ray electronics, diagnostic equipment, MRI electronics, ECG equipment, ultrasound scanners, and portable medical devices
Provides electronic manufacturing solutions in medical, industrial, automotive, telecommunication, defense and aerospace applications
Machining of components for aerospace, automotive and defense industries
Provides integrated electronic manufacturing services including printed circuit board (PCB) assembly, cable harnesses, and box builds to customers in aerospace and defence, medical technology, and industrial sectors
SWOT Analysis
Strengths
- • Integrated EMS provider with design-to-maintain lifecycle focus(p.23)
- • Over 22 years of experience in high-mix, low-to-medium volume complex systems(p.23)
- • Long-term marquee customer relationships averaging over 11 years(p.32)
- • Strong order book of ₹24,325 million as of March 31, 2023(p.33)
- • Revenue growth of 15.47% year-on-year in FY2023(p.23)
- • Free cash flow of ₹444.85 million in FY2023(p.24)
- • Strong credit ratings from CRISIL(p.49)
- • Quality certifications and accreditations(p.53)
- • Significant insurance coverage(p.54)
- • Growth in total income over three years(p.58)
- • Growing order book(p.95)
- • Integrated engineering solutions across product value chain(p.109)
- • High entry barriers from technical expertise and safety-critical electronics capabilities(p.109)
- • Strong order book with marquee customers and long-standing relationships(p.109)
- • Advanced manufacturing infrastructure with stringent quality and diverse capabilities(p.109)
- • Promoter parentage with long industry expertise and experienced management(p.109)
- • Integrated end-to-end EMS capabilities across design, build, and maintain(p.170)
- • High entry barriers due to expertise in safety-critical, regulated industries(p.170)
- • Strong marquee customer relationships with long tenure and growing revenue contribution(p.172)
- • Advanced manufacturing infrastructure with stringent quality certifications(p.173)
- • Experienced management team and access to Promoter's design capabilities(p.174)
- • Robust supply chain with multiple vendors and geographic diversification(p.174)
- • Established holding company relationship with Cyient Limited providing strategic support(p.200)
- • Strong board composition with experienced independent directors from diverse sectors(p.203)
- • Seasoned senior management with international experience in electronics manufacturing and operations(p.217)
- • Growing revenue with profitability demonstrated over three-year period(p.235)
- • Positive earnings per share trend showing operational performance improvement(p.235)
- • Integrated capabilities across PCB assembly, cable harnesses, and box builds for mission-critical aerospace, defence, and medical applications(p.286)
- • Long-term customer relationships averaging over 11 years with marquee customers including Honeywell, Thales, ABB, and BEL providing stable repeat revenue(p.287)
- • Access to promoter Cyient Limited's design capabilities, global reputation, customer relationships and 30+ years of domain expertise(p.286)
- • Repeat business from customers constituting 99.96% of FY2023 revenue, providing revenue visibility and stability(p.287)
- • Strong position in high-growth India EMS market at 32.3% CAGR, expected to reach 7% of global EMS market by 2026(p.286)
Weaknesses
- • Extreme customer concentration with top 10 customers at 91.08% of revenue(p.31)
- • High customer churn rate of 45.71% in FY2023(p.32)
- • Significant dependence on Mysuru facility for 90.75% of revenue(p.39)
- • Low capacity utilization of 38.43% at Mysuru facility in FY2023(p.40)
- • Profit declined 20.27% from ₹397.95 million in FY2022 to ₹317.27 million in FY2023(p.37)
- • High material costs at 79.75% of total expenses in FY2023(p.41)
- • Dependent on Promoter and key personnel with succession risk(p.35)
- • High supplier concentration with top 5 suppliers at 30.78% of materials(p.41)
- • Dependence on few key customers(p.53)
- • Weak debt service coverage ratio(p.58)
- • Outstanding litigation and tax proceedings involving Promoter(p.57)
- • Missing corporate records from early years(p.61)
- • Unregistered and unstamped lease deed for Registered Office(p.52)
- • High customer concentration with top 5 customers representing 67.53% of revenue(p.111)
- • Significant outstanding borrowings of ₹3,144.74 million as of March 31, 2023(p.102)
- • Low capacity utilization at Hyderabad facility of 7.61% as of March 31, 2023(p.97)
- • Declining Mysuru facility capacity utilization from 54.46% to 38.43% between FY2022 and FY2023(p.97)
- • High inventory days of 186 days as of March 31, 2023(p.111)
- • High customer concentration risk with top 5 customers representing 67.53% of revenue(p.169)
- • Low capacity utilization at Hyderabad facility at 7.61% for PCBA(p.173)
- • Significant decline in number of customers from 50 to 35 over two years(p.169)
- • Low B2S services contribution at 0.20% of revenue(p.179)
- • Declining profitability with profit margin falling from 5.52% to 3.81% between FY22 and FY23(p.168)
- • High dependence on holding company for key management personnel secondment(p.206)
- • Significant reliance on external borrowings for working capital(p.234)
- • High inventory levels relative to revenue indicating potential working capital pressure(p.234)
- • Substantial financial liabilities with current borrowings exceeding non-current borrowings(p.234)
- • Founder/promoter group litigation risk with related party transaction history(p.200)
- • Heavy dependence on top 10 customers representing 91.08% of revenue for FY2023, creating customer concentration risk(p.287)
- • Dependency on top 5 and top 10 suppliers for 30.78% and 43.02% respectively of raw material costs on purchase order basis(p.288)
- • Significant leverage ratio with total debt to equity of 1.80x as of March 31, 2023, increased finance costs up 43.42% YoY(p.278)
- • Raw material and inventory costs represent 76.96% of total income, with volatile commodity prices subject to global market fluctuations(p.288)
- • Trade receivables of ₹1,617.48 million as at March 31, 2023 concentrated with top 5 customers representing 58% of receivables(p.276)
- • High financial leverage with significant promoter-dependent debt(p.309)
- • Dependence on promoter financing with recall risk(p.311)
- • Restrictive covenants limiting corporate flexibility(p.310)
- • Litigation involving promoter on constitutional matters(p.313)
- • Tax proceedings with material disputed amounts involving promoter(p.315)
Opportunities
- • India EMS market projected to grow from USD 20 billion to USD 80 billion by CY2026(p.23)
- • Global OEMs outsourcing manufacturing due to rising labor costs elsewhere(p.23)
- • Strategic use of IPO proceeds for capacity expansion(p.25)
- • Inorganic growth through acquisitions with ₹700 million allocated(p.25)
- • Working capital funding to support revenue growth(p.25)
- • Capacity expansion through capital expenditure(p.50)
- • Strategic acquisitions and inorganic growth(p.55)
- • Growth strategy focused on design capabilities and geographic expansion(p.58)
- • Increased working capital funding for growing order book(p.59)
- • Government schemes driving localization—PLI and Make in India initiatives(p.98)
- • Growing product complexity and miniaturization creating demand for advanced EMS(p.98)
- • Expansion in focus industries—Aerospace & Defence EMS market in India expected to grow at 38% CAGR FY22–FY27(p.147)
- • Medical Electronics EMS market in India expected to grow at 40.8% CAGR FY22–FY27(p.149)
- • Inorganic growth through acquisitions to expand geographical footprint(p.104)
- • India EMS market growing at 32.5% CAGR (FY22–FY27), fastest globally(p.133)
- • India EMS industry growing at 32.3% CAGR, expected to reach 7% of global market by 2026(p.167)
- • Government initiatives promoting electronics manufacturing including Make in India and PLI schemes(p.154)
- • Growth in aerospace sector with 5G, autonomous vehicles and electrification driving electronics demand(p.174)
- • Expansion of B2S services with only 25% of Indian EMS market currently offering B2S(p.175)
- • Geographic expansion opportunity in North America where key customers are located(p.175)
- • Adjacent services expansion including after-market services, value-added services and OSAT(p.175)
- • Access to Cyient Limited's global manufacturing network and customer base(p.228)
- • Expansion into diverse high-value sectors through established infrastructure(p.238)
- • Strategic investments in related entities to strengthen manufacturing capabilities(p.222)
- • Leverage public market capital to fund growth and reduce debt burden(p.232)
- • India EMS market expanding at 32.3% CAGR with expected growth from 2.2% to 7% of global market by 2026 due to government support and OEM localization(p.286)
- • Growing trend of OEMs moving design and development to EMS partners, enabling higher value-add services and margin improvement(p.286)
- • International revenue growth potential with overseas sales at 59.71% of FY2023 revenue, up from 36.55% in FY2021(p.289)
- • Expansion of service offering through non-recurring engineering (NRE) services, which increased 189.87% from FY2022 to FY2023(p.302)
- • Capacity expansion capabilities with three manufacturing facilities totaling 229,061 sq ft with potential for further development(p.287)
Threats
- • Highly competitive EMS industry with low market share of 0.5%(p.35)
- • Competitors with greater financial, technical and marketing resources(p.35)
- • Volatility in raw material prices and supply chain disruptions(p.41)
- • Foreign exchange fluctuation risk with 59.71% revenue from exports(p.43)
- • Rapid technological change and customer preference shifts(p.21)
- • High financial leverage with ₹3,144.74 million borrowings(p.44)
- • Credit rating downgrade risk affecting financing costs(p.49)
- • Lease expiration risks for key facilities(p.52)
- • COVID-19 pandemic ongoing impact(p.53)
- • Quality requirement compliance costs and defect claims(p.53)
- • Manufacturing facility disruption risks(p.51)
- • Labour-intensive operations and unionization risk(p.59)
- • Dependence on third-party transportation(p.56)
- • Indian macroeconomic and political risks(p.62)
- • Global EMS market dominated by China with 46.7% share; India faces competition from established players(p.133)
- • Dependence on few marquee customers creates revenue concentration risk(p.111)
- • Global inflation reaching 8.7% in CY2022 affecting input costs and raw material prices(p.126)
- • Supply chain constraints and logistics disruptions impacting manufacturing(p.96)
- • Geopolitical tensions (Russia-Ukraine war) affecting global economy and demand(p.125)
- • Global economic slowdown with growth forecast at 2.8% in CY2023(p.126)
- • Intense competition from global EMS players including Foxconn, Jabil, Flex with significantly larger scale(p.162)
- • Supply chain disruption risks from reliance on imported semiconductors(p.182)
- • Cyclicality and volatility in aerospace and defence sector demand(p.178)
- • Regulatory compliance requirements in highly regulated industries like aerospace and medical(p.170)
- • Exposure to geopolitical risks and foreign currency fluctuations with 59.71% international revenue(p.186)
- • Dependency on Promoter for design capabilities and potential loss of access to Cyient Limited's resources(p.179)
- • Dependence on electronics manufacturing sector cyclicality and customer concentration(p.250)
- • Significant exposure to working capital financing risk with high interest rates on current borrowings(p.223)
- • Exposure to foreign exchange volatility on foreign currency denominated transactions(p.236)
- • Regulatory compliance burden including listing and governance requirements post-IPO(p.208)
- • Credit risk exposure with aging trade receivables portfolio(p.260)
- • High volatility and commodity price risk for semiconductor, passive, sheet metal, plastics and aluminium raw materials affecting margins(p.306)
- • Foreign exchange volatility with 59.71% revenue from overseas customers primarily in USD and Euro, exposing results to rupee depreciation(p.289)
- • Economic cyclicality in aerospace, defence, medical and industrial sectors affecting customer demand and order volumes(p.287)
- • Rising labour costs in India with union agreements at Mysuru facility valid until March 31, 2025, and potential impact from labour law changes(p.289)
- • Increasing competitive intensity as new entrants emerge and existing competitors adopt similar business models(p.307)
- • Regulatory compliance requirements on borrowing covenants(p.311)
- • Events of default triggered by regulatory or control changes(p.309)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Cyient Limited | Promoter | 92.84% | — |
| Cyient Limited | Promoter | 92.84% | — |
| Cyient Limited | Promoter | — | — |
| Cyient Limited | Promoter | 100% | — |
| Cyient Limited | Promoter | 92.84% | — |
| Cyient Limited | Holding company / Promoter | 100% | — |
Leadership
Anthony Montalbano · Chief Executive Officer
Shrinivas Appaji Kulkarni · Chief Financial Officer
Ram Dornala · Chief Operating Officer
Parvati K R · Company Secretary and Compliance Officer
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
Cyient DLM IPO FAQs
What is the lot size of Cyient DLM IPO?
The minimum lot size of Cyient DLM IPO is 56 shares. One lot costs ₹14,840 at the cut-off price.
When does Cyient DLM IPO open and close?
Cyient DLM IPO opened for subscription on 27 Jun 2023 and closed on 30 Jun 2023.
What is the listing date of Cyient DLM IPO?
Cyient DLM IPO listed on 10 Jul 2023.