February 25, 2024

Cyient DLM Limited raises over Rs 259.64 Crores from 20 anchor investors ahead of IPO

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Cyient DLM Limited has raised Rs 259.64 Crores from 20 anchor investors, ahead of its initial public offering (IPO). Eight Domestic Mutual Funds have applied through a total of 11 schemes.

The company has decided to allot 97,98,113 Equity Shares to Anchor Investors at Anchor Investor Allocation Price of ₹ 265/- per Equity Share (including share premium of ₹ 255/- per Equity Share). The anchor book saw participation from a wide variety of marquee investors, including Nippon Life India Small Cap, ICICI Prudential, HDFC MF, Tata Infrastructure Fund, Societe General, LIC MF, Amansa Holdings, DSP India, Aditya Birla Sun Life, Edelweiss MF, Founders Collective Fund, Catamaran EKAM, Vikasa India, BNP Paribas Arbitrage, and Kotak MF.

The Hyderabad based Company’s initial public offering comprises a fresh issue of Equity Shares aggregating up to ₹ 5,920.00 million (Rs. 592 Crores). The Price Band for the Issue has been fixed from ₹ 250 per Equity Share to ₹ 265 per Equity Share. The issue will open for subscription on Tuesday, 27th June 2023 and conclude on Friday, 30th June 2023.

The company intends to utilise the net proceeds towards the funding of incremental working capital requirements of the Company, funding of capital expenditure of the Company, funding the repayment/prepayment of borrowings to the tune of Rs 1,609.11 million (Rs 160.9 Crores), for achieving inorganic growth through acquisition as well as for general corporate purposes. Bids can be made for a minimum of 56 Equity Shares and in multiples of 56 Equity Shares thereafter. The issue includes a reservation of up to such a number of equity shares aggregating up to Rs 150 million for subscription by eligible employees (employee reservation portion).

The Company has in consultation with the BRLMs, undertaken a pre-IPO placement of 4,075,471 Equity Shares aggregating to ₹ 1,080.00 million (Rs 108 Crores). Axis Capital Limited and JM Financial Limited are the Book Running Lead Managers to the Issue.