Cyient DLM shares listed at over a 50% premium over the IPO price, at Rs 401 on the BSE today. The stock touched an intraday high of Rs 424.40. A positive listing was expected ahead of the market debut, as Cyient DLM shares were trading at a premium of Rs 135 in the grey market. The company’s initial public offer was a fresh issue aggregating up to Rs 592 crore. The price range for the offer was Rs 250-265 a share.
Investors advised to book 50% profit and hold the rest for 18 to 24 months
“Cyient DLM sees great potential for growth as it can benefit from growing digital businesses. The IPO has been subscribed 67.31 times between June 27 to June 30 supported by all categories of investors. The IPO debuted with an upside of 50% on the listing day itself. We believe investors shall book at least 50% of the profit at current levels, the rest of investment can be kept on hold for more than 18 to 24 months,” said Mahesh M Ojha, AVP Research & BD, Hensex Securities.
Hold Cyient DLM shares for long term with stop loss at Rs 362.7
“As expected, Cyient DLM made an outstanding entry in the secondary market at a listing price of Rs 403. The issue price of the IPO at the upper band was Rs 265; hence, it listed at a premium of 52%. Cyient DLM is a fundamentally strong company, has a strong track record of growth, and is well-positioned to benefit from the growing demand for digital manufacturing solutions. We will not recommend a fresh Buy at this level. However, existing investors can hold the shares for the long term with a stop loss at 362.7, as the company has good growth prospects,” said Anubhuti Mishra, Equity Research Analyst at Swastika Investmart Ltd.