Cyient DLM Limited IPO

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

They are a qualified supplier to global OEMs in the aerospace and defence, medical technology and industrial sectors.
They leverage the design capabilities of Promoter Cyient Limited, a leading engineering services provider with over three decades of domain expertise providing engineering and design solutions globally with a focus on multiple industries.

Their Electronic Manufacturing Services are provided as Build to Print (“B2P”) and Build to Specification (“B2S”) services to clients.
Their solutions primarily comprise:

(i) printed circuit board (“PCB”) assembly (“PCBA”)
(ii) cable harnesses
(iii) box builds which are used in safety critical systems such as cockpits, inflight systems, landing systems, and medical diagnostic equipment.

Objects of the Cyient DLM Limited IPO:

Our Company proposes to utilise the Net Proceeds towards funding the following objects: 1. Funding incremental working capital requirements of our Company; 2. Funding capital expenditure of our Company; 3. Repayment/prepayment, in part or full, of certain of our borrowings; 4. Achieving inorganic growth through acquisitions; and 5. General corporate purposes.  

Cyient DLM Limited IPO Details:

Promoters And Management:

i. Rajendra Velagapudi is the Managing Director of the Company. He holds a bachelor’s degree in technology (Mechanical) from Faculty of Engineering, Nagarjuna University, a master’s degree of engineering in automobile engineering from Anna University, Madras and degree of master of science in design of rotating mechanics from School of Mechanical Engineering, Cranfield University. Prior to joining the Company, he worked with Ford Truck Manufacturing Division, Simpsons Co. Ltd. 186 for a period of two years, Bajaj Tempo Limited and Bharat Earth Movers Limited for a period of over eight years. He was appointed to the Board of Directors with effect from April 25, 2017. ii. Ganesh Venkat Krishna Bodanapu is a Chairman, Non-Executive & Non-Independent Director of the Company. He holds a bachelor's degree of science in electrical engineering from Purdue University and a master's degree in business administration from the J.L Kellogg School of Management, Northwestern University. He has been associated with the Promoter since 2003 and currently is the managing director and chief executive officer of the Promoter. He was appointed to the Board of Directors with effect from February 4, 2015. iii. Venkat Rama Mohan Reddy Bodanapu is a Non-Executive, Non-Independent Director of the Company. He holds a bachelor’s degree in engineering from Faculty of Engineering, Andhra University and degree of master of technology from Indian Institute of Technology, Kanpur. He also holds a master’s degree of science from University of Mirhigan and a degree of doctor of philosophy from Jawaharlal Nehru Technological University. Previously, he has been associated with HCL Limited and Electronic Industries Association of Andhra Pradesh. He was appointed to the Board of Directors with effect from December 27, 2022  

Financials of Cyient DLM Limited IPO:

Finance of Cyient DLM IPO
Pariculares ( In Crore ) 2020 2021 2022
Revenue from Operations 457 628 720
Other Income 8 9 8
Total Revenue 465 637 728
Cost of Materials Consumed 388 477 555
Changes in Inventories -23 17 11
Employee Benefits Expense 44 47 51
Other Expenses 18 21 22
EBITDA 22 56 93
Depreciation & Amortisation 10 18 19
Finance Cost 18 20 22
EBIT 12 38 74
OPM (%) 4.73% 8.79% 12.77%
PBT -7 15 50
PAT -6 12 40
NPM (%) -1.29% 1.88% 5.49%
No.of Shares 5.28 5.28 5.28
EPS -1.14 2.27 7.58

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (in Crore)
Cyient DLM Limited 728 40 7.58 Na Na Na
Syrma SGS Technology Ltd 1267 79 5.59 52 272 4791
Kaynes Technology India Limited 671 41 8.88 84 776 4492
DCX Systems Limited 1102 66 8.48 23 214 2073

Recommendation on Cyient DLM Limited IPO:

To be updated once Cyient DLM files for RHP.

Lead Manager of Cyient DLM Limited IPO:

  1. Axis Capital Limited
  2. JM Financial Consultants Private Limited

Registrar of Cyient DLM Limited IPO:

  1. Kfin Technology Private Limited

Company Address:

3 rd Floor, Plot No. 11, Software Units Layout, Infocity, Madhapur, Hyderabad 500 081, Telangana, India;  

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