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Shares of Cyient DLM surged 59 per cent during their trading debut on Monday, marking Dalal Street's second strong debut in as many days. Shares of the company ended at Rs 421, up Rs 156 or 58.8 per cent, over its issue price of Rs 265.
In the previous trading session, shares of ideaForge had nearly doubled during their debut.
At the closing price, Cyient DLM, an electronic manufacturing service (EMS) provider, was valued at Rs 3,337 crore. Through the initial public offering (IPO), the company raised Rs 592 crore in fresh capital, which it plans to plans to utilise for working capital requirements, funding capital expenditure, repayment of debts and funding acquisitions.
Despite its strong listing of Cyient DLM, shares of its parent firm Cyient fell 5.4 per cent to close at Rs 1,400. After the IPO, the promoter shareholding in the company has declined from 92.84 per cent to 66.65 per cent.
Cyient DLM’s key clients include Honeywell International, ABB, and Bharat Electronics. The company has three manufacturing facilities -- Mysuru, Hyderabad and Bengaluru. Analysts said Cyient DLM is well positioned to take advantage of the strong headwinds seen in the ESM sector.
"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 ($80 billion) of the global EMS market in 2026. Being a wholly-owned subsidiary of Cyient, their relationship with the company's promoter allows them to benefit from its reputation, customer relationships, global salesforce, network and technical expertise,' a note by Axis Capital said.
Pakka zooms 20% on 1st day
Pakka zooms 20% on 1st day
Shares of Pakka (formerly Yash Pakka), a manufacturer of eco-friendly packaging material, surged 20 per cent during their listing debut on the National Stock Exchange (NSE), valuing the company at nearly Rs. 500 crore. Previously, the company was listed only on the BSE. The company joins a bunch of others to also list on NSE after meeting the stricter listing criteria laid down by the exchange.
Ayodhya-based Pakka has embarked upon an ambitious capacity expansion plan and intends to set up operations in the North American market amid rising demand for compostable packaging, particularly in the food industry.
