Cyient DLM Limited IPO

Apply 0
Avoid 0

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:

Open Date: Jun 27 2023
Close Date: Jun 30 2023
Total Shares: 22,339,623
Face Value: ₹ 10 Per Equity Share
Issue Size: 592 Cr.
Lot Size: 56 Shares
Issue Price: ₹ 250-₹265 Per Equity Share
Listing At: NSE,BSE
Listing Date: Jul 10 2023

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:

A. Balance Sheet
Particular (In Crore) Mar-21 Mar-22 Mar-23
Equity Share Capital 1.367 1.367 52.866
Reserves 36 76 145
Borrowings 234 293 314
Trade Payables 190 192 285
Other Liabilities 184 214 307
Total Liabilities 607 700 907
Net Block 140 129 122
Capital Work in Progress 2 3 1
Investments 0.3 0.3 90
Other Assets 59 52 52
Total NC Assets 202 185 265
Receivables 226 152 162
Inventory 155 270 425
Cash & Bank 15 77 77
Other Assets 46 93 176
Face value 10 10 10
B. Profit & Loss Statement
Particular (In Crore) Mar-21 Mar-22 Mar-23
Sales 628 721 832
Raw Material Cost 478 555 634
Change in Inventory 17 -11 11
Employee Cost 47 52 65
Other Expenses 40 41 34
Other Income 9 8 6
EBITDA 55 92 94
EBITDA Margin 8.73% 12.62% 11.22%
Depreciation 18 19 19
Interest 21 22 32
Profit before tax 16 51 43
Tax 4 11 11
Net profit 12 40 32
NPM (%) 1.85% 5.46% 3.78%
C. Cash Flow Statement
Particular (In Crore) Mar-21 Mar-22 Mar-23
Cash From Operating Activity
Profit From Operation 55 88 92
Receivable -172 76 -11
Inventory 67 -114 -156
Payable 82 1 91
Other WC Items 3 5 52
Working Capital Changes -20 -33 -23
Direct Taxes 0.1 -6 -17
Net Cash Inflow from Operating Activity 35 49 52
Cash from Investing Activity
Fixed assets purchased -27 -8 -8
Fixed assets sold 0 1 0
Investments purchased 0 0 -89
Other investing items 26 -25 -45
Net cash inflow from investing activities -1 -32 -142
Cash from Financing Activity
Proceeds from shares 0 0 89
Proceeds from borrowings 0 0 188
Repayment of borrowings -215 -196 -389
Intrest paid fin -9 -7 -14
Other financing items -6 -6 -6
Net Cash Flow -9 62 -16

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 832 31.7 4.00 66.2 265 2101
Syrma SGS Technology Ltd 2048 123 6.75 66.5 449 7932
Kaynes Technology India Limited 1,126 95 16.37 96.1 1,574 9,152
DCX Systems Limited 1,254 72 7.41 34.5 255 2,470

Recommendation on Cyient DLM Limited IPO:

Review and Recommendation of Cyient DLM by IZ team is 5/10 1. Strong industry presence: Being a qualified supplier to global OEMs in sectors like aerospace and defense, medical technology, and industrial, Cyient DLM Limited has successfully established its presence in key industries. This indicates a level of trust and confidence in the company's capabilities.

2. Comprehensive value chain: Cyient DLM Limited's ability to cover the entire life cycle of a product, from design to manufacturing, positions them as a one-stop solution provider. This integrated approach enhances efficiency, reduces lead times, and ensures smoother collaboration between different stages of product development.

3. Synergy with Cyient Limited: Leveraging the engineering and design expertise of Cyient Limited provides a competitive advantage to Cyient DLM Limited. This collaboration allows them to deliver holistic solutions that cater to various client requirements and industry-specific challenges.

4. Safety-critical systems focus: By offering box builds for safety-critical systems, Cyient DLM Limited demonstrates its commitment to high-quality manufacturing and its ability to meet the stringent requirements of critical industries. This specialization could give them a competitive edge in these markets. 5. Financials: In the financial year 2021, the company generated revenue of INR 628 crores, while in the financial year 2022, the revenue increased to INR 721 crores and in the financial year 2023, it is expected to increase to INR 832 crores. The CAGR growth is only 15% which is on lower side. 6. Peers: Syrma, Kaynes and DCX peers shown have clocked CAGR revenue growth of 52%, 64%, and 40% in the last 3 years. And, in comparison to that Cyient DLM has shown revenue growth of 15%. 7. Asking Valuation: The IPO is priced at P/E of 66x which looks on higher side.

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;  

Discussion on Cyient DLM Limited IPO:


    The IPO is coming at very high valuation to tap the primary market which is in full swing from last 2-3 months.

      Applied for 1 lot each for me and family members as it has been learnt to have been over subscribed more than 2.5 times by afternoon today itself.

    Is there shareholders quota in this ipo? If anyone has info can you please share.

Leave a Reply