Cyient DLM Reports Full Utilization of IPO Funds for Q2 FY2026
Cyient DLM Limited has fully utilized its IPO funds of INR 663.15 crore as of September 30, 2025. The company allocated funds across various objectives including working capital requirements, capital expenditure, debt repayment, inorganic growth, and general corporate purposes. Most allocations have been fully utilized, with only INR 45.12 crore remaining unused, primarily in capital expenditure. The company has deployed the unutilized funds in fixed deposits and bank accounts, earning 6.35% returns. The Board confirmed that the fund utilization aligns with the disclosures made in the offer document.
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Cyient DLM Limited , a prominent player in the Electronic Manufacturing Services (EMS) sector, has reported the complete utilization of its Initial Public Offering (IPO) funds for the quarter ending September 30, 2025. The company's monitoring agency report, prepared by ICRA Limited, confirms that the fund utilization aligns with the stated objectives of the IPO issue.
IPO Fund Allocation and Utilization
Cyient DLM raised INR 700 crore through its IPO in June 2023, with net proceeds of INR 663.15 crore after lower-than-estimated issue expenses. The funds were allocated across various objectives:
| Objective | Allocated Amount (INR Crore) | Utilized Amount (INR Crore) | Unutilized Amount (INR Crore) |
|---|---|---|---|
| Funding incremental working capital requirements | 291.09 | 282.87 | 8.22 |
| Funding capital expenditure | 43.57 | 6.73 | 36.84 |
| Repayment/prepayment of borrowings | 160.91 | 160.85 | 0.06 |
| Achieving inorganic growth through acquisitions | 70.00 | 70.00 | Nil |
| General corporate purposes | 97.58 | 97.58 | Nil |
| Total | 663.15 | 618.03 | 45.12 |
Key Highlights
Working Capital Funding: The company has utilized INR 282.87 crore for incremental working capital requirements, with a minor delay of 6 months due to alignment with working capital cycle requirements.
Capital Expenditure: INR 6.73 crore has been used for capital expenditure, with the remaining amount scheduled for utilization in FY2025-26 and FY2026-27.
Debt Repayment: Nearly the entire allocated amount of INR 160.91 crore has been used for repayment or prepayment of borrowings.
Inorganic Growth: The full allocation of INR 70.00 crore for achieving inorganic growth through acquisitions has been utilized.
General Corporate Purposes: The entire amount of INR 97.58 crore allocated for general corporate purposes has been used.
Unutilized Funds
As of September 30, 2025, Cyient DLM has INR 45.12 crore in unutilized funds. The company has deployed INR 45.68 crore in fixed deposits and bank accounts, earning returns of 6.35%.
Management Commentary
The Board of Directors of Cyient DLM has noted that the utilization of funds is in line with the disclosures made in the offer document. They have confirmed that the slight delay in completing the working capital funding object is due to alignment with working capital cycle requirements.
Conclusion
Cyient DLM's IPO fund utilization report demonstrates the company's commitment to its stated objectives. With the majority of funds already deployed and plans in place for the remaining amount, the company appears to be on track with its growth and expansion strategies in the Electronic Manufacturing Services sector.
Historical Stock Returns for Cyient DLM
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -1.12% | -0.53% | +5.96% | +2.59% | -28.22% | +8.01% |
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