SEBI on April 5, 2023, approved Cyient subsidiary Cyient DLM’s proposed initial public offering.
| Photo Credit: Reuters
Electronic manufacturing services and solutions provider and Cyient subsidiary Cyient DLM has received markets regulator SEBI approval for its proposed initial public offering comprising a fresh issue aggregating up to ₹740 crore.
Cyient DLM said it may consider a further issue of specified securities, including by way of a private placement, rights issue or preferential, in consultation with the book running lead managers and as permitted under law, aggregating up to ₹148 crore prior to filing of the red herring prospectus with the Registrar of Companies.
Axis Capital and JM Financial are the Book Running Lead Managers to the issue, it said in a release on April 5.
In January, after filing DRHP with SEBI, Cyient DLM said the funds raised through the IPO are proposed to be utilised for funding incremental capital requirements, capital expenditure, debt repayment/prepayment, achieving inorganic growth through acquisitions as well as for general corporate purposes.
The company has three manufacturing facilities in Hyderabad, Bengaluru and Mysore, with a total manufacturing area of 229,061 sq. ft. It is a manufacturing partner and systems supplier that developed high mix, low-to-medium volume highly complex systems for global OEMs in the aerospace and defence, medical technology and industrial sectors.
Recently, announcing executive leadership appointments, parent company Cyient said earlier in the year the board of directors had approved reorganisation of the company into two separately operating entities to foster their individual growth momentum. The DRHP was filed subsequently to take the design-led manufacturing (Cyient DLM) business public.
It announced the appointment of Krishna Bodanapu as Executive Vice Chairman and Managing Director of Cyient, and Karthikeyan (Karthik) Natarajan as CEO while continuing to be Executive Director. Prabhakar Atla has been appointed as CFO designate, keeping in mind the retirement of incumbent Ajay Aggarwal on April 20. As announced earlier, Antony Montalbano has been appointed as CEO of Cyient DLM.
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