Cyient DLM IPO: What GMP reflects as public issue opens next week?

Cyient DLM IPO: Cyient DLM IPO grey market premium (GMP) on June 24 increased despite weakness on Dalal Street on Friday. The shares of the company have started to attract investor attention ahead of its issue. The company will launch its initial public offering on June 27, is expected to list on BSE and NSE next month. The Cyient DLM is a mainboard IPO that will close on June 30. 

According to market observers, shares of Cyient DLM are available at a premium of 110 per equity share.

Cyient DLM IPO GMP today

According to market observers, Cyient DLM IPO GMP today is 110, which is 10 higher from its yesterday’s GMP of 100. Market observers said that Cyient DLM IPO GMP has jumped due to the fact that the organisation has carved itself a niche in the EMS and solution-providing sectors. With its strategies in motion, it is prepared to capitalise on the promising prospects. Post-IPO, the reduction in its debt will save its financial cost and increase earnings.

What does GMP mean?

Market observers maintained that Cyient DLM IPO GMP today is 110, which means grey market is expecting that Cyient DLM IPO listing price would be around 367, which is around 38.49% higher from Cyient DLM price band of 250 to 265 per equity share. So, the grey market is signaling that Cyient DLM IPO will have a positive listing but it won’t be a whopping premium as market observers said,”based on its FY23 financials, the issue is fully priced. Well-informed/cash surplus investors may park funds for long-term rewards.”

However, stock market experts maintained that grey market is not an ideal indicator about the expected listing premium as it involves even those who have high stake involved with the public issue. They also said that GMP is completely speculative and it is non regulated. So, sometimes GMP of an IPO given artificial appreciation or depreciation as well. So, one should stick to the basics and scan balance sheet and financial details of the company as it gives concrete fundamental picture of the company

Cyient DLM

The company offers Build to Print and Build to Specification services for electronic manufacturing. Build to print solutions entail clients supplying the product design, and the business then offers quick and flexible manufacturing services. Additionally, Build to Specification services entail manufacturing the appropriate product after developing it according to the client’s specifications.

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Updated: 24 Jun 2023, 06:58 PM IST