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Cyient DLM Limited IPO Company Profile:

Cyient DLM Limited is one of the leading integrated EMS (“Electronic Manufacturing Services”) and solutions providers with strong capabilities across the value chain and the entire life cycle of a product. With over two decades of experience in developing high-mix, low-to-medium volume highly complex systems, the company is a qualified supplier to global OEMs in the aerospace and defense, medical technology, and industrial sectors. The company is one of the few EMS companies in India catering to highly regulated industries and the largest supplier of EMS services to the aerospace and defense industry by value in India.

Cyient DLM Limited leverage the design capabilities of its Promoter, Cyient Limited, a leading engineering services provider with over three decades of domain expertise providing engineering and design solutions globally with a focus on multiple industries. The company’s Electronic Manufacturing Services are provided as Build to Print (“B2P”) and Build to Specification (“B2S”) services to the clients. The B2P solutions involve the company’s client providing the design for the product for which it provides agile and flexible manufacturing services. The company’s B2S services involve utilizing its Promoter’s design capabilities to design the relevant product based on the specifications provided by the client and manufacturing the product.

Cyient DLM Limited solutions primarily comprise:

  • Printed Circuit Board (“PCB”) Assembly (“PCBA”),
  • Cable Harnesses, and
  • Box Builds which are used in safety-critical systems such as cockpits, inflight systems, landing systems, and medical diagnostic equipment

Cyient DLM Limited enjoys long-term relationships as an integrated partner to multiple marquee customers such as Honeywell International Inc. (“Honeywell”), Thales Global Services S.A.S (“Thales”), ABB Inc., Bharat Electronics Limited and Molbio 152 Diagnostics Private Limited, having had an average relationship of over 11 years as on September 30, 2022, with the aforementioned customers. Cyient DLM Limited’s manufacturing infrastructure comprises three facilities spread across two states in India, Mysuru, Hyderabad, and Bengaluru, with a total manufacturing area of 229,061 sq. ft.

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    Cyient DLM Limited IPO Details:

    IPO Open Date Not Available
    IPO Close Date Not Available
    Listing Date Not Available
    Face Value ₹10 per share
    Price Not Available
    Lot Size Not Available
    Issue Size [●] shares

    (aggregating up to ₹740 Cr)

    Fresh Issue [●] shares

    (aggregating up to ₹740 Cr)

    Offer For Sale Not applicable
    Issue Type Book Built Issue IPO
    Listing At BSE, NSE
    QIB Shares Offered Not more than 75% of the Offer
    NII (HNI) Shares Offered Not less than 15% of the Offer
    Retail Shares Offered Not less than 10% of the Offer
    Promoters Cyient Limited

    Cyient DLM Limited IPO Financial Analysis:

    Particulars 6M of FY-23(in cr.) FY-22(in cr.) FY-21(in cr.) FY-20(in cr.) CAGR
    Revenue from Operations 340.27 720.53 628.03 457.09 16.4%
    Other Income 7.81 7.95 8.88 7.83
    Cost of Goods Sold 264.71 543.96 495.29 364.91 14.2%
    Employee Cost 23.94 51.65 46.86 44.10
    Other expenses 16.39 40.88 39.93 34.35
    EBITDA 43.04 91.99 54.83 21.56 62.2%
    EBITDA margin% 12.65% 12.77% 8.73% 4.72%  
    Depreciation 9.89 19.29 18.46 10.58
    Interest 14.48 21.98 20.77 18.19
    Profit / (loss) before tax 18.67 50.73 15.60 -7.22
    Total tax 5.25 10.94 3.78 -0.51
    Profit / (loss) After tax 13.42 39.80 11.81 -6.70
    Profit / (loss) After tax margin% 3.94% 5.52% 1.88% -1.47%  

    Cyient DLM Limited IPO Revenue from Operations:

    Segment 6M of FY-23(in cr.) % FY-22(in cr.) % FY-21(in cr.) % FY-20(in cr.) % CAGR
    Aerospace (I) 62.72 18.43% 101.83 14.13% 95.23 15.16% 65.73 14.38% 15.7%
    Defence (II) 132.80 39.03% 337.13 46.79% 263.90 42.02% 210.54 46.06% 17.0%
    Medical Technology (III) 60.80 17.87% 161.56 22.42% 185.32 29.51% 86.48 18.92% 23.2%
    Industrial (IV) 82.54 24.26% 104.06 14.44% 71.43 11.37% 83.84 18.34% 7.5%
    Others (V) 1.41 0.41% 15.97 2.22% 12.16 1.94% 10.50 2.30% 15.0%
    Total 340.27 100.00% 720.53 100.00% 628.03 100.00% 457.09 100.00% 16.4%

    Shareholders of Cyient DLM Limited:

    S.NO. Name of the Shareholder No. of Shares % of pre-Offer shareholding
    1 Cyient Limited 52,866,000 100.00%
      Total 52,866,000 100.00%

    Cyient DLM Limited IPO Strengths:

    • Cyient DLM Limited’s role as an integrated solutions provider which is further strengthened by its Promoter’s design capabilities and expertise sets it apart from the competitors, and allows it to work with the clients from the conceptualization and design stage and support their manufacturing needs. The company’s expertise across multiple industries allows us to cross-pollinate best practices from a client in one industry to another, thereby bringing significant value addition to the clients.

    • Cyient DLM Limited’s ability to provide end-to-end manufacturing services allows clients to reduce the need to manage multiple suppliers and stakeholder management across the journey. This allows clients to introduce products to the market in a timely manner.

    • Cyient DLM Limited’s position as one of the few EMS companies in India offering electronics solutions for safety and mission-critical applications in highly regulated industries acts as a significant entry barrier to new entrants. The company’s clients are primarily engaged in industries such as aerospace and defence, medical technology, and industrials which are typically highly regulated industries.

    • Cyient DLM Limited enjoys several competitive advantages and capabilities, which, together with its over two decades of experience in the EMS industry, give it a strong edge and also provide it with certain key factors which are difficult to replicate. Some of these factors include sectoral expertise, the high complexity of the products the company manufactures and the solutions it provides, its ability to provide end-to-end solutions, and the trust of the customers.

    • Cyient DLM Limited’s strategic partnership model with its customers has accelerated its growth and allowed it to enjoy a position as an industry leader in the EMS sector. The company also focuses on assisting customers meet their requirements across the spectrum of their engagement with the company, including in terms of cost, productivity, product reliability, and low time to market. This, together with the company’s high delivery standards and performance excellence, has enabled it to acquire, service, and deepen and lengthen its relationship with diverse range of high-level clients ranging from startups to industry leaders.

    • Cyient DLM Limited has derived significant advantages and a strong competitive edge from the sectoral expertise of its Promoter, which was named as a Rising Star in Managed Services by the Information Services Group and was named in the ‘Leadership zone’ across aerospace, telecommunication, semiconductors, industrial, and medical devices verticals. Cyient has also been rated as an Expansive-Established player in Digital Engineering and ER&D Services – USA region by Zinnov Zones. ‘Cyient’ is a brand associated with strong global engineering capabilities, quality of service, and reliability.

    Cyient DLM Limited Risk Factors:

    • Cyient DLM Limited’s business is dependent on the sale of its products to certain key customers. The loss of any of the key customers or loss of revenue from sales to the customers could have a material adverse effect on the business, results of operations, financial condition, and cash flows of the company.

    • Cyient DLM Limited depends on third-party suppliers for raw materials and components, which are on a purchase-order basis. Such suppliers may not perform, or be able to perform their conditions in a timely manner, or at all, and any delay, shortage, interruption, reduction in the supply of or volatility in the prices of raw materials on which the company relies may have a material adverse effect on the business, results of operations, financial condition, and cash flows.

    • Any failure to compete effectively in the highly competitive EMS industry could have a material adverse effect on the business, results of operations, financial condition, and cash flows.

    • The markets in which Cyient DLM Limited’s customers compete are characterized by sectors specific to the industries to which it caters, and their rapidly changing preferences and other related factors including lower manufacturing costs therefore as a result the company may be affected by any disruptions in the industry

    • Any decline in the value of investments of Cyient DLM Limited, present and future, could have a material adverse effect on its business, results of operations, financial condition, and cash flows.

    Cyient DLM Limited Objects of the Issue:

    Cyient DLM Limited proposes to utilize the Net Proceeds towards funding the following objects:

    • Funding incremental working capital requirements of the Company;
    • Funding capital expenditure of the Company;
    • Repayment/prepayment, in part or full, of certain of the borrowings;
    • Achieving inorganic growth through acquisitions; and
    • General corporate purposes.

    Cyient DLM Limited IPO Prospectus:

    Registrar to the Issue:

    KFin Technologies Limited

    Tel: +91 40 6716 2222 / 18003094001



    Investor grievance e-mail:

    Contact person: M Murali Krishna

    SEBI Registration Number: INR000000221

    Cyient DLM Limited IPO FAQ

    Ans.Cyient DLM Limited IPO will comprise fresh share issue and new offer share issue. The company aims to go public to accelerate its growth and expansion plan.

    Ans. The company will open for subscription on <>.

    Ans. The minimum lot size that investors can subscribe to is <> shares.

    Ans. The Cyient DLM Limited IPO listing date is <>.

    Ans. The minimum lot size for this upcoming IPO is <> shares.