Listing day Update: Cyient DLM Ltd

Cyient DLM Ltd had a very strong listing on 10th July 2023, listing at a strong premium of 52.08% and then moving up still higher. The trading day may not have been too robust with the Nifty and the Sensex opening with a lot of fanfare but eventually losing most of the gains and closing with just about marginal gains. The Nifty closed with gains of 24 points and the Sensex with gains of 64 points. However, the stock of Cyient DLM did very well on the bourses on the day of listing. That also had to do a lot with the level of subscription in the IPO. With subscription of about 71.35X  overall and QIB subscription at 95.87X, the listing was expected to be robust at the very least.. Here is the Cyient DLM Ltd IPO listing story on 10th July 2023.

The IPO price was fixed at the upper end of the band at ₹265 which was totally understandable considering the very enthusiastic response to the IPO with 71.35X overall subscription and the 95.87X QIB subscription in the IPO. In addition, the retail portion had got 52.17 times subscription in the IPO. The price band for the IPO was ₹250 to ₹265. On 10th July 2023, the stock of Cyient DLM Ltd listed on the NSE at a price of ₹403, a sharp premium of 52.08% on the IPO issue price of ₹265. On the BSE also, the stock listed at ₹401, a smart premium of 51.32% to the IPO price.
On the NSE, Cyient DLM Ltd closed on 10th July 2023 at a price of ₹421.75. That is a first day closing premium of 59.15% on the issue price of ₹265 and a premium of 4.65% on the listing price of ₹403. In fact, the listing price turned out to be the low price of the day and the stock traded all through the day above the listing price. On the BSE, the stock closed at ₹420.75. That represents a first day closing premium of 58.77% over the issue price and also a premium of 4.93% over the listing price on the stock exchange. On both the exchanges, the stock listed smartly above the IPO issue price and closed the day very close to the 5% gains mark. In fact, the low of the day was the opening price and the close price of the day was very close to the high price of the day, which shows the underlying strength in the stock. The markets did give up some gains in the second half, otherwise the stock could have given a better performance on the day of listing.

On Day-1 of listing, Cyient DLM Ltd touched a high of ₹427 on the NSE and a low of ₹403. The premium sustained through the day. In fact, if you look at the range of prices, the stock opening price turned out to be the low price of the day and the stock closed very near to the high price of the day, and you can almost call it just lower than the high price of the day. The interesting point is that while the markets did correct in the second half of the day, one did not see too much of pressure on the stock of Cyient DLM Ltd while it traded. On Day-1 of listing, the Cyient DLM Ltd stock traded a total of 210.42 lakh shares on NSE amounting to value of ₹864.28 crore on the first day.  The order book during the day showed a lot of buying with the buy orders far exceeding the sell orders at any point of time. The pressure virtually got accentuated in the last hour or so. At the closing point, the open buy orders stood at a quantity of 42,588 shares. Here is the price discovery on NSE in pre-market.

Data Source: NSE

Let us now turn to the price and volume performance on the BSE on the day of listing. On Day-1 of listing, Cyient DLM Ltd touched a high of ₹426.45 on the BSE and a low of ₹401. The premium sustained through the day. In fact, if you look at the range of prices, the stock opening price turned out to be exactly the low price of the day and the stock closed very near to the high price of the day. In fact, you can almost call it just lower than the high price of the day. The interesting point is that while the markets did correct in the second half of the day, the pressure was hardly visible on the stock of Cyient DLM Ltd while it traded. On Day-1 of listing, the Cyient DLM Ltd stock traded a total of 14.20 lakh shares on the BSE amounting to value of ₹58.44 crore on the first day.  The order book during the day showed a lot of buying with the buy orders far exceeding the sell orders at any point of time. The pressure virtually got accentuated in the last hour or so. At the closing point, the open orders were in favour of the buyers.

While the volumes on the BSE were not as much as on the NSE, the trend was once again the same. The order book through the day showed a lot of buying pressure with the buy orders far exceeding the sell orders at any point of time. That make it a buy on dips stock through the day. However, the performance could have been still better if the market had not corrected sharply in the second half. On the NSE, out of the total 210.42 lakh shares traded during the first day of trading, the deliverable quantity represented 104.06 lakh shares or a deliverable percentage of 49.45% on the NSE. That shows a lot of delivery buying action. Even on the BSE, out of the total 14.20 lakh shares of quantity traded, the deliverable quantity at a gross across client level was 8.07 lakh shares representing total deliverable percentage of 56.86%. 

At the close of Day-1 of listing, Cyient DLM Ltd had a market capitalization of ₹3,336.81 crore with free-float market cap of ₹533.89 crore.