Cyient DLM shares surge 51% in stellar stock market debut

Shares of Cyient DLM made a stellar stock market debut on Monday, July 10, as the stock opened for trading at Rs 401 on the BSE, up 51.32 per cent from its issue price of Rs 265. On the National Stock Exchange, Cyient DLM shares opened at Rs 403, marking an upside of 52 per cent from the issue price.

The stock rose as much as 60 per cent from the issue price to hit an intraday high of Rs 424.40.

"Cyient DLM is a fundamentally strong company, has a strong track record of growth, and is well-positioned to benefit from the growing demand for digital manufacturing solutions. We will not recommend a fresh buy at this level. However, existing investors can hold the shares for the long term with a stop loss at Rs 362.7, as the company has good growth prospects," said Anubhuti Mishra, equity research analyst at Swastika Investmart.

Cyient DLM shares were in very high demand during the three-day share sale via initial public offering (IPO) which ended on June 30. The IPO was subscribed 71.35 times with portion reserved for qualified institutional buyers (QIB) getting booked 95.87 times, shares set aside for non-institutional investors was booked 48 times and pie set aside for retail investors was subscribed 52 times.

Cyient DLM raised Rs 592 crore from the IPO which was purely fresh issue of equity shares with no offer for sale (OFS) component. The company sold shares in price band of Rs 250-265 a share.

Cyient DLM had mobilised Rs 260 crore from anchor investors ahead of the IPO.

Retail investors were allowed to bid for minimum one lot of 56 shares up to maximum of 13 lots. One lot of Cyient DLM shares was priced at Rs 14,840 in the IPO.

Funds raised through the IPO will be utilised for funding incremental capital requirements, capital expenditure, debt payment, achieving inorganic growth through acquisitions as well as for general corporate purposes.

Cyient DLM, a subsidiary of Cyient, is the leading integrated energy management solutions (EMS) provider with a focus on the entire life cycle of a product, including design, build, and maintenance.

Axis Capital and JM Financial were the managers to the offer.

As of 10:22 am, Cyient DLM shares traded 53.55 per cent higher from issue price at Rs 406.90 on the BSE.