Cyient DLM shares made a strong debut in the secondary market on Monday, July 10, after the electronic manufacturing services firm's IPO concluded last month with an overall subscription of more than 67 times the equity on offer. The stock began its journey in the listed world at Rs 401 apiece on BSE — a premium of 51.3 per cent over the upper end of the IPO price range. 

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Cyient DLM shares listed on NSE at Rs 403 apiece, a premium of 52 per cent. The stock finished the listing day at a premium of around 59 per cent, at Rs 420.8 and Rs 421.8 apiece on BSE and NSE respectively. 

The listing was largely in tandem with market wizard Anil Singhvi's expectations. Cyient DLM, a subsidiary of IT firm Cyient, is a provider of electronic manufacturing services and solutions.

EDITOR'S TAKE | What Anil Singhvi recommends

Zee Business Managing Editor Anil Singhvi, who had recommended applying for the Cyient DLM IPO for listing gains, expected the stock to debut on the bourses around Rs 425-450 levels — translating to a premium of 60-70 per cent above the IPO price.

The market wizard, who found the IPO valuation to be fair, "neither cheap, nor very high", suggests investing in the company from a long-term perspective. 

Long-term investors can hold on to their positions and short-term investors can place a stop loss at Rs 400, he said on Monday.

Singhvi has identified the following positive and negative points about Cyient DLM: 

Positive

  • Reputed promoter background
  • No criminal litigation against the company, its promoters or directors
  • A strong growth outlook
  • Strong names in the anchor book

Negative

  • High dependency on imported raw material 
  • Valuations reasonable; not cheap, not very high

Key things to know about the Cyient DLM IPO 

The IPO — which comprised fresh issuance of shares worth an estimated Rs 592 crore — received bids for 89.7 crore shares against the 1.3 crore shares on offer, according to provisional exchange data. Here's how different investors responded to the IPO, which was open for subscription from June 27 to June 30: 

Category Reservation Subscription (No. of times the shares on offer)
Qualified institutional buyers (QIBs) 75% 90.4
Non-institutional investors (NIIs) 15% 45.1
Retail investors 10% 49.2
Overall 100% 67.3

Under the IPO, potential investors were able to bid for Cyient DLM shares in a range of Rs 250-265 in multiples of 56, translating to Rs 14,000-14,840 per lot. Read more on Cyient DLM IPO

Ahead of the public offer, Cyient DLM mobilised Rs 260 crore from anchor investors, by allocating 98 lakh equity shares at an average price of Rs 265. Read more on Cyient DLM anchor investors

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