Connect with us

Company News

Cyient arm files DRHP for ₹740-cr IPO

Electronic Manufacturing Services (EMS) firm Cyient DLM Ltd has filed preliminary papers with capital markets regulator Sebi to raise Rs 740 crore through an Initial Public Offering (IPO).

The initial share-sale is purely a fresh issue of equity share with no Offer-For-Sale (OFS) component, according to the Draft Red Herring Prospectus (DRHP).

The company may consider issuance of securities aggregating up to Rs 148 crore in a pre-IPO placement round.

Funds raised through the IPO would 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 EMS and solutions provider with a focus on the entire life cycle of a product, including design, build and maintenance. It has three state manufacturing facilities in Hyderabad, Bengaluru and Mysore.

The India EMS is a sizable industry, contributing to 2.2 per cent (USD 20 billion) of the global EMS market in 2022. India’s EMS industry is the fastest growing among all countries at a CAGR (Compound Annual Growth Rate) of 32.3 per cent and is expected to contribute 7 per cent (USD 80 billion) of the global EMS market in 2026, as per the draft papers.

The expansion of India’s EMS industry is being fuelled by a variety of factors. Significant reasons driving the growth are raising labour costs in other parts of the world and a trend among large OEMs to outsource manufacturing rather than invest in their own infrastructure, it added.

Axis Capital and JM Financial are the book running lead managers to the issue and the equity shares of the company will be listed on the BSE and NSE. PTI

Click to comment

You must be logged in to post a comment Login

Leave a Reply

Copyright © 2024 Communications Today

error: Content is protected !!