Hyderabad-based technology solutions corporation Cyient’s subsidiary Cyient DLM has filed documents for a Rs 740 crore IPO with SEBI.

“Cyient Limited announces that Cyient DLM Limited, a subsidiary of our company, has filed its draft Red Herring Prospectus January 9, 2023, with SEBI about its projected IPO for listing on BSE and NSE,” Cyient said in a regulatory filing.

The planned listing of Cyient DLM will encompass an IPO in the form of a new issue of new equity shares by Cyient DLM for a total of up to Rs 740 crore. Cyient DLM may deliberate FPO of equity shares for an amount combining up to Rs 148 crore preceding the filing of the red herring prospectus with ROC.

“The anticipated listing and issue price of the IPO shares are subject to many factors, including the book-building procedure under Indian regulations, receipt of appropriate sanctions and external factors such as prevailing market conditions and certain other deliberations. As there is no declaration that the projected listing will proceed, shareholders and potential investors are counselled to exercise caution when dealing with the company’s securities,” it said. Shares of small-cap stock Cyient were trading 0.8% complex at Rs 837.15 on the BSE on Tuesday.

Cyient DLM emphasises highly complex, low-volume electronics industries for safety-critical segments. The company had last year prearranged Anthony Montalbano as its CEO. The progression of China plus One strategy, snowballing need for electronics manufacturing, an essential focus on the Indian market, and prospects in Built to Spec (B2S) are key worldwide trends that extant a unique opportunity to nurture the Cyient DLM business, the company had understood earlier.