Cyient DLM IPO Day 1- Issue fully subscribed, GMP up 35%; should you subscribe- Check details

Cyient DLM IPO Day 1: Issue fully subscribed, GMP up 35%; should you subscribe? Check details

Cyient DLM’s Rs 592-crore IPO, which opened for subscription today, was fully subscribed by early afternoon. The issue has been booked 1.07 times so far, with total bids of 1,42,92,488 shares. Qualified institutional buyers (QIBs) have bid for 0.01 times of their reserved portion. Retail investors subscribed 4.46 times. The NII portion was subscribed 1.10 times and employees subscribed 0.15 times. The IPO closes for subscription on Friday, 30 June.

Cyient DLM shares’ grey market premium (GMP) rose 35.85% on Tuesday, commanding a premium of Rs 95 over the IPO price, implying a listing price of Rs 360 per share. The price band for the public issue is set at Rs 250-265 per equity share.

Should you subscribe to the Cyient DLM IPO?

“On FY23 annualized financials, the IPO is valued at 66.2x P/E, 25.6x EV/EBITDA and 2.7x EV/ Sales, at the upper price band. The EMS market globally is witnessing a strong growth trajectory. India’s EMS market contributes 2.2% ($20bn) of the global EMS market in 2022 and it is the fastest growing among all countries at a CAGR of 32.3%. It is expected to contribute 7% ($80bn) of the global EMS market in 2026 which will aid the company to grow further. 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,” said analysts at Reliance Securities.