Integrated electronic manufacturing services provider, Cyient DLM, kicked off its stock market journey with a solid debut as its shares listed at a significant premium of 52% over the IPO issue price of Rs 265 on the National Stock Exchange (NSE). The company's initial public offering garnered massive investor interest, with an oversubscription rate of 71.3 times. The net proceeds from the IPO will be utilized for incremental working capital requirements, capital expenditure, debt repayment, and general corporate purposes.

Cyient DLM's shares opened at Rs 403 on the NSE, representing a premium of 52% compared to the IPO price of Rs 265. On the Bombay Stock Exchange (BSE), the stock debuted at Rs 401 per share, indicating a premium of 51.32%.

The company's IPO, valued at Rs 592 crore, received an overwhelming response from investors, reflecting the robust demand for Cyient DLM's offerings. Prior to the listing, the company's shares commanded a premium of Rs 155 in the unlisted market.

Cyient DLM specializes in integrated electronic manufacturing services (EMS) and solutions, catering to the complete lifecycle of a product, including design, build, and maintenance. The company boasts long-term relationships with prominent clients such as Honeywell, Thales Global Services, ABB, Bharat Electronics, and Molbio Diagnostics, with an average relationship tenure of over 11 years.

Industry analysts have noted that at the upper price band, Cyient DLM is trading at a price-to-earnings (P/E) ratio of 66.2x FY23 earnings, aligning with valuations of its peers.

In the financial year ending March 2023, Cyient DLM reported a 15% growth in revenue from operations, reaching Rs 832 crore, while its profit for the same period stood at Rs 31.7 crore, reflecting a 4% increase.

The company derives a significant portion of its revenue from printed circuit board assembly (PCBA), accounting for around 63%, with an additional 32% of revenue coming from box builds utilized in safety-critical systems like cockpits, inflight systems, landing systems, and medical diagnostic equipment.

Axis Capital and JM Financial served as the book-running lead managers for the IPO, while KFin Technologies acted as the registrar.

Cyient DLM's impressive listing performance signals a promising start in the stock market, driven by strong investor confidence and the company's position as a leader in the integrated electronic manufacturing services sector.