Cyient DLM, an integrated Electronic Manufacturing Services and solutions provider, has received approval from SEBI for an initial public offering (IPO).
The company proposes to issue shares, with a face value of ₹10 each, aggregating to ₹740 crore.
The Hyderabad-based company might consider a further issue of specified securities (private placement, rights issue, preferential offer or any other method) aggregating up to ₹148 crore prior to the filing of the red herring prospectus with the registrar of companies..
Cyient DLM has been carved out as a separate entity from Cyient Ltd, a Hyderabad-based technology solutions company, during the recent organisational revamp.
Axis Capital Ltd and JM Financial Ltd are the Book Running Lead Managers for the issue.
“We would like to use the proceeds to fund incremental working capital and capital expenditure requirements of the company, besides repayment/prepayment of borrowings,” the company said in the draft. “We are looking at inorganic growth opportunities through acquisitions; and expanding our geographical footprint,” it added.