Analysts said that electronic manufacturing services Cyient DLM seems to be in great demand in the grey market as its shares traded with a 45% premium over the issue price of Rs 265 amid listing next week.

The chief reasons for a premium are:
The healthy subscription IPO demand.
Favourable equity market conditions.
Strong growth potential in the EMS industry.

The grey market is an unsanctioned market where IPO shares can be bought and sold on the bourses. The grey market usually helps investors to build a guess about the listing price.
The Cyient DLM IPO was subscribed 67.31 times during June 27-30 amid the category of investors participating in the offer.

Qualified institutional investors (QIIs) purchased 90.44 times the allotted quota, retail investors bid 49.22 times the reserved portion, and high-networth individuals (HNIs) were booked 45.05 times.

Cyient DLM delivers EMS as build-to-print and build-to-specification services with core solutions including printed circuit board meeting, cable harnesses and box build. These are serious solutions for cockpits, inflight systems, landing systems and medical diagnostic tackle.

The subsidiary of Cyient has listed revenue growth at a CAGR of 15% during FY21-FY23, which experts observes is lagging behind its peers, having a robust order book to provide good visibility of growth going ahead.
Its order book of Rs 2,440 crore in FY23, increasing by 103% over the previous year, is a result of its better relations with top industrial giants globally.
The company recorded a profit CAGR of 4% and EBITDA of 18% during FY21-FY23, with an EBITDA margin of 10.6% in FY23 against 11.7% in FY22 and 7.3% in FY21.