Cyient DLM Ltd, Electronic Manufacturing Services  provider,  has submitted preliminary papers with capital markets regulator Sebi  to raise Rs 740 crore through an IPO (IPO).

According to the Draft Red Herring Prospectus, the initial share offering is only a new issue of equity shares without an Offer-For-Sale (OFS) component (DRHP).  In a pre-IPO placement phase, the company may explore issuing securities totaling up to Rs 148 crore.

The money raised through the IPO would be put to use for general corporate reasons, including additional capital requirements, capital expenditures, debt repayment, and achieving inorganic expansion through acquisitions.

The top integrated EMS and solutions provider with a focus on the complete life cycle of a product, including design, construction, and maintenance, is Cyient DLM, a division of Cyient. In Hyderabad, Bangalore, and Mysore, it has three state-run manufacturing facilities.

In 2022, the India EMS market will account for a sizeable 2.2% (or USD 20 billion) of the global EMS market. According to the draught documents, India's EMS business is estimated to contribute 7% (or USD 80 billion) of the worldwide EMS market in 2026 and is developing at the quickest rate of any nation, with a CAGR of 32.3%.

There are many variables driving the growth of the EMS sector in India. The trend among large OEMs to outsource manufacturing rather than invest in their own infrastructure, as well as rising labour costs in other regions of the world, are significant factors driving the growth, it was said.

The equity shares of the company will be listed on the BSE and NSE, and the book-running lead managers for the issue are Axis Capital and JM Financial.

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