- Cyient DLM Ltd raises over Rs 259.64 cr from 20 anchor investors
NE BUSINESS BUREAU
AHMEDABAD,JUNE 27
The initial public offering of Cyient DLM Ltd has received good response from investors on the first day of bidding with bids for 3.53 crore equity shares against an offer size of 1.33 crore shares, subscribing 2.65 times on June 27.
Retail investors seem very bullish on the company as they have bought 9.82 times the allotted quota in the initial hours, while the portion set aside for employees was booked 29 percent.
High networth individuals also showed good interest in the IPO, putting in bids 3.57 times the reserved portion, while qualified institutional buyers have subscribed for 3 percent shares of the part set aside for them.
The company mopped up Rs 259.64 crore from 20 anchor investors, a part of qualified institutional buyers’ portion, on June 26, a day before the issue debut. Consequently, the offer size has been reduced from 2.23 crore equity shares to 1.33 crore shares.
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 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’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 Rs 250 to Rs 265 per Equity Share. The issue opened for subscription on Tuesday, 27th June 2023 and will conclude on Friday, 30th June 2023. 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).
