Cyient DLM IPO Receives Strong Retail Investor Interest, Subscribed 6.88 Times on Day 2

28 Jun 2023 , 04:05 PM

Cyient DLM, a subsidiary of Cyient, experienced a robust demand during its initial public offering (IPO) even on the second day of bidding. As of 4.00 pm on June 28, 2023, the IPO was oversubscribed by 6.88 times. Click here to subscribe the IPO.

According to data from the BSE, the company received bids for 9,17,21,672 shares, surpassing the 1,33,32,297 shares available for subscription.

The retail investor portion garnered the highest subscription rate, reaching 22.72 times the allotted shares. It was closely followed by the non-institutional investors’ (NII) quota, which received bids 10.07 times the offer. On the other hand, the qualified institutional buyers (QIB) portion witnessed a subscription of only 0.56 times. Additionally, the employee portion was subscribed to 0.88 times of the shares on offer.

The IPO of Cyient DLM consists of a full fresh issue of 1.13 crore shares. Following the IPO, Cyient Ltd, the promoter of Cyient DLM, will retain a 66.68 percent stake in the company. The lot size for the IPO is 56 shares, and retail investors have the opportunity to bid for up to 13 lots.

The net proceeds generated from the fresh issue will be allocated for various purposes. These include funding the company’s additional working capital requirements, supporting capital expenditure, and partially or fully repaying certain borrowings. The funds will also be utilized for inorganic growth through acquisitions and for general corporate purposes.