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  • Writer's pictureJatin Agarwal

Cyient DLM IPO

Company and IPO Overview:

Cyient DLM is one of the leading integrated Electronic Manufacturing Services and solutions providers with strong capabilities across the value chain and the entire life cycle of a product.

With over two decades of experience in developing high mix, low-to-medium volume highly complex systems, Cyient DLM is a qualified supplier to global OEMs in the aerospace, defence, medical technology and industrial sectors. It is one of the few EMS companies in India catering to highly regulated industries and the largest supplier of EMS services to the aerospace and defence industry by value in India.

It majorly works under two categories; one is B2P and B2S.

B2P abbreviated as Build to Print means that the client will provide the design for a particular product, and the company provides agile and flexible manufacturing services.

B2S abbreviated as Build to Specifications where it involves designing the product and the specifications will be manufactured based on the client's necessity.

Cyient DLM's solutions primarily comprise:

1. Printed circuit board ("PCB") assembly ("PCBA"),

2. Cable harnesses, and

3. Box builds which are used in safety critical systems such as cockpits, inflight systems, landing systems, and medical diagnostic equipment.

The company enjoys long-term relationships as an integrated partner to multiple marquee customers such as Honeywell International Inc. (“Honeywell”), Thales Global Services S.A.S (“Thales”), ABB Inc, Bharat Electronics Limited and Molbio Diagnostics Private Limited, having had an average relationship of over 11 years as on September 30, 2022.

Cyient DLM Limited is a new main board IPO coming and it is going to raise around ₹ 592 crores via IPO that comprises only fresh issue of ₹592 crores. The retail quota is 10%, QIB is 75%, and HNI is 15%. The price band of the issue is ₹ 250 to ₹ 265 with a minimum market lot of 56 shares. Moreover, the company is ready to give an employee discount of Rs 15 per share.

Financials (rounded off):


Total Revenue (₹ in cr)

​​​PAT (₹ in cr)










Objectives of the Issue:

Through the IPO, the company aims to achieve the following objectives:

1. Funding the incremental working capital requirements of the company.

2. Funding capital expenditure of the company.

3. Repaying the borrowings.

4. Achieving inorganic growth through acquisitions.

IPO Details:

IPO Date


Face Value

₹10 per share

IPO Price Band

₹250-₹265 per share

IPO Lot Size


Listing at


Basis of Allotment


Credit of Shares in Demat


Listing Date


Pre-Issue Shareholding


Post-Issue Shareholding


Retail Minimum Lot Size

56 shares (₹14,840)

Valuations & Margins:


FY 21

FY 22

FY 23

















ROCE (%)




Important things to note about the Company:

Top reasons to consider the IPO:

1. The EMS market is witnessing strong tailwinds. India’s EMS industry is the fastest growing among all countries at a CAGR of 32.3% and is expected to contribute 7.0% (USD 80 billion) of the global EMS market in 2026.

2. The company has a competitive advantage in the industry as its promoter, Cyient ltd was named in the ‘Leadership zone’ across aerospace, telecommunication, semiconductors, industrial, and medical devices verticals.

3. The company is one of the few in the country to offer electronics solutions for safety and mission-critical applications. Since the industry is highly regulated, it is difficult for new players to enter the market.

Risk factors to watch out in the IPO:

1. 91.08% of the company’s total revenue is contributed by its top 10 customers. The loss of any key customers can impact the company’s revenue significantly.

2. The cost of materials contributed to 79.75% of the total expenses of the company for FY23. Failure to effectively manage the inventory cost can adversely affect the financial conditions of the company.

3. The company is dependent on its promoter, management and its key personnel to run its business. Any loss of the key team members can impact the performance of the business.

Crisp Insights:

  • Current Grey Market Premium is Rs.100.

  • Given the momentum and interest in this sector, the IPO looks fairly priced, however, one needs to take care as to how much growth potential this company can show. Market will likely give market leaders in this space a very heavy premium.

Disclaimer: All information is provided for educational and informational purpose only. Data is fetched from publicly available sources such as the DRHP filed by the company. The website or the author takes no guarantee for the accuracy of the data however, we have tried our best to present accurate data to out readers. Please consult a financial advisor or do your own analysis before investing/trading in the stock market.

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