Cyient DLM IPO Basis of Allotment

CYIENT DLM LIMITED

Our Company was originally incorporated as Rangsons Electronics Private Limited' at Mysuru, Karnataka as a private limited company under the Companies Act. 1956. pursuant to a certificate of incorporation dated June 30.1993 issued by the Registrar of Companies. Karnataka at Bengaluru The name of our Company was changed to 'Cyient DLM Private Limited' pursuant to a special resolution passed by our Shareholders on December 22,2016 and a fresh certificate of incorporation pursuant to a change of name dated January 18,2017 was issued by the Registrar of Companies. Karnataka at Bengaluru Subsequently, pursuant to a change in our registered office by way of a resolution passed by our Shareholders on August 1.2019. a certificate of registration of regional director order in relation to the change of State was issued by the Registrar of Companies. Telangana at Hyderabad (*RoC*) on July 3.2020. Our Company was converted from a private limited company to a public bmited company pursuant to a special resolution passed by our Shareholders on November 25.2022. and the name of our Company was changed to Cyient DLM Utmled. A fresh certificate of incorporation dated December 13.2022 consequent upon change of name on conversion to a pubbc limited company was issued by the RoC. For further details on the charges in the name and registered office of our Company, see 'History and Certain Corporate Matters" on page 192 of the Prospectus.

Our Company has filed the prospectus dated July 1, 2023 with the RoC (the "Prospectus") and the Equity Shares are proposed to be listed on the National Stock Exchange of India Limited ("NSE") and BSE Limited ("BSE") and the trading will commence on July 10,2023.

INITIAL PUBLIC OFFER OF 22,373.584 EQUITY SHARES OF FACE VALUE OF Rs.10 EACH ("EQUITY SHARES") OF CYIENT DLM LIMITED ("COMPANY" OR "ISSUER") FOR CASH AT A PRICE OF Rs.265 PER EQUITY SHARE (INCLUDING ASHARE PREMIUM OF Rs.255 PER EQUITY SHARE) AGGREGATING TO Rs.5,920.00 MILLION' (THE "ISSUE ).
* OUR COMPANY HAS, IN CONSULTATION WITH THE BRLMS, UNDERTAKEN A PRIVATE PLACEMENT OF 4.075.471 EQUITY SHARES AGGREGATING TO Rs. 1.080.00 MILLION ("PRE-IPO PLACEMENT"). THE SIZE OF THE FRESH ISSUE OF EQUITY SHARES HAS BEEN ADJUSTED TO Rs.5.920.00 MILLION.
THE ISSUE INCLUDED A RESERVATION OF 600.000 EQUITY SHARES. AGGREGATING TO Rs. 150 MILLION (CONSTITUTING 0.76% OF THE POST-ISSUE PAID-UP EQUITY SHARE CAPITAL), FOR SUBSCRIPTION BY ELIGIBLE EMPLOYEES ("EMPLOYEE RESERVATION PORTION"). OUR COMPANY IN CONSULTATION WITH THE BRLMS. HAD OFFERED A DISCOUNT OF Rs.15 PER EQUITY SHARE TO ELIGIBLE EMPLOYEE(S) BIDDING IN THE EMPLOYEE RESERVATION PORTION ("EMPLOYEE DISCOUNT"). THE ISSUE LESS THE EMPLOYEE RESERVATION PORTION IS HEREINAFTER REFERRED TO AS THE "NET ISSUE". THE ISSUE AND THE NET ISSUE CONSTITUTE 28.21% AND 27.45% OF OUR POST-ISSUE PAID-UP EQUITY SHARE CAPITAL. RESPECTIVELY.

1. Customer and order book concentration - Our top 10 customers constituted 91.08% of our total revenue from operations for the year ended March 31, 2023 and 96.57% to our order book as of March 31,2023.

2. Market Share - As at March 31, 2022, our market share in the Indian EMS market was 0.5% (Source: Frost & Sullivan Report).

3. Reduction in Profit - Our profit for the year decreased by 20.27% from Rs.397.95 million for Fiscal 2022 to Rs.317.27 million for Fiscal 2023 primarily on account of an increase in (i) finance costs; and (ii) employee benefits expense and a decrease in other income.

4. A significant portion of our revenue from operations is derived from our Build to Print ("B2P") solutions, and from the manufacture and sale of Printed Circuit Board Assembly ("PCBA"). In Fiscal 2023,99.80% of our total revenue from operations was from our B2P solutions. Further, in Fiscal 2023, 62.62% of our total revenue from operations was from the manufacture and sale of PCBAs.

5. Concentration Risk - In the year ended March 31, 2023, 90.75% of our total revenue from operations was attributable to our Mysuru facility.

6. The capacity utilisation for Fiscals 2023, 2022 and 2021 for our Mysuru facilities are 38.43%, 54.46% and 46.54% respectively and Hyderabad facilities are 7.61%, 9.13% and 7.12% respectively which is lower in comparison to other manufacturing companies.

7. Our cost of materials consumed constituted 79.75% of our total expenses for the year ended March 31, 2023 which indicates that our profitability is dependent on inventory cost.

8. Dependency on Promoter - We benefit from our Promoter's name and logo, customer relationships, global salesforce network, technical expertise, design team and marketing team for obtaining and executing some of our contracts.

9. Weighted average cost of acquisition ("WACA") of all Equity Shares transaction in the one year and three years preceding the date of RHP:

* Equity Shares allotted pursuant to the Bonus Issue.
10. WACA compared to Floor Price and Cap Price:

11. Our market capitalisation at the lower end and higher end of price band to Total Income forthe fiscal year 2023 is 2.40 and 2.51 respectively.

12. The Two Book Running Lead Managers associated with the Issue have handled 53 public Issues in the past three Financial Years, out of which 19 Issues closed below the IPO price on the listing date.

'Issues handled where there were no common BRLMs

The Issue was made through the Book Building Process, in terms of Rule 19(2)(b) of the Securities Contracts (Regulation) Rules. 1957. as amended ("SCRR") read with Regulation 31 of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations. 2018. as amended (the "SEBIICDR Regulations"). This Issue is in compliance with Regulation 6(2) of the SEBIICDR Regulations wherein not less than 75% of the Net Issue was made available for allocation on a proportionate basis to Qualified Institutional Buyers ('QIBs' and such portion the 'QIB Portion'). Our Company, in consultation with the BRLMs. allocated 60% of the QIB Portion to Anchor Investors on a discretionary basis in accordance with the SEBI ICDR Regulations ("Anchor Investor Portion "), of which one-third was reserved for domestic Mutual Funds, subject to valid Bids being recoived from domestic Mutual Funds at or above the Anchor Investor Allocation Price, in accordance with the SEBI ICDR Regulations. In the event of under-subscription or non-allocation in the Anchor Investor Portion, the balance Equity Shares shall be added to the Net QIB Portion. Further. 5% of the Net QIB Portion v/as made available for allocation on a proportionate basis to Mutual Funds only and the remainder of the Net QIB Portion was made available for allocation on a proportionate basis to all QIBs (other than Anchor Investors) including Mutual Funds, subject to valid Bids having been received at or above the Issue Price. However, if the aggregate demand from Mutual Funds was less than 5% of the Net QIB Portion, the balance Equity Shares available for allocation in the Mutual Fund Portion were required to be added to the remaining QIB Portion for proportionate allocation to QIBs. Further, not more than 15% of the Net Issue was be available for allocation to Non-lnstitutional Bidders out of which (a) one third of such portion v/as reserved for applicants with application size of more than * Rs.200.000 and up to Rs.1.000.000; and (b) two third of such portion was reserved for applicants with application size of more than

Rs.1,000.000, provided that the unsubscribed portion in either of such sub-categories could be allocated to applicants in the other sub-category of Non-lnstitutional Bidders and not more than 10% of the Net Issue was made available for allocation to Retail Individual Bidders ("RIB") in accordance with the SEBI ICDR Regulations, subject to valid Bids being received from them at or above the Issue Price. Further, Equity Shares will be allocated on a proportionate basis to Eligible Employees applying under the Employee Reservation Portion, subject to valid Bids having been received from them at or above the Issue Price. All Bidders (except Anchor Investors) were required to mandatorily utilise the Application Supported by Blocked Amount ("ASBA") process by providing details of their respective ASBA accounts and UPI ID (incase of UPI Bidders) (as defined hereinafter), in which case the corresponding Bid Amounts was blocked by the SCSBs or under the UPI Mechanism, as applicable to participate in the Issue Anchor Investors were not permitted to participate in the Anchor Investor Portion of the Issue through the ASBA process. For details, see *Issue Procedure* on page 339 of the Prospectus.

The bidding for Anchor Investor opened and closed on Monday, June 26.2023. The company received 20 applications from 16 anchor investors for 10.943.968 equity shares. The Anchor investor Issue Price was finalized at Rs.265/- per Equity Share. A total of 9,798.113 shares were allocated under the Anchor Investor Portion aggregating to Rs. 2,596,499,945/-

The Issue received 1,664,572 applications for 908,968,928 Equity Shares (prior to rejections) resulting in 40.6269 times subscription. The details of the applications received in the Issue from vanous categories are as under; (before rejections);

Final Demand

A summary of the final demand as at different Bid prices is as under:

The Basis of Allotment was finalized in consultation with the Designated Stock Exchange, being NSE on July 05, 2023

A. Allotment to Retail Individual Bidders (after rejections) (including ASBA Applications)

The Basis of Allotment to the Retail Individual Bidders, who have bid at the Cut-Off Price or at the Issue Price of Rs.265 per Equity Share, was finalized in consultation with the NSE. This category has been subscnbed to the extent of 50.03788 times. The total number of Equity Shares Allotted in Retail Portion is 2,192,241 Equity Shares to 39,147 successful Retail Individual Bidders. The category-wise details of the Basis of Allotment are as under:

Including Spillover of 14,883 Equity Shares from Employee category

Please Note: 1 additional Share shall be allotted to 9 Allottees from amongst 3417 Successful Applicants from the categories 112-728 (i.e., excluding successful applicants from Category 56) in the ratio of 3:1139.

B. Allotment to Non-lnstitutional Bidders (more than Rs. 2 lakhs and up to 10 lakhs) (After Rejections) (including ASBA Applications)

The Basis of Allotment to the Non-lnstitutional Bidders (more than Rs. 2 lakhs and up to Rs. 10 lakhs), who have bid at the issue Price of Rs. 265 per Equity Share or above, was finalized in consultation with NSE. This category has been subscribed to the extent of 41.54971 times. The total number of Equity Shares allotted in this category is 1,096,121 Equity Shares to 1,398 successful applicants. The category-wise details of the Basis of Allotment are as under:

Includes spillover of 7.442 Equity Shares from Employee Category

Please Note: 1 additional Share shall be allotted to 89 Allottees from amongst 119 Successful Applicants from the categories 840-3752 (i.e., excluding successful applicants from Category 784) in the ratio of 89:119.

C. Allotment to Non-lnstitutional Bidders (more than Rs. 10 lakhs) (After Rejections) (including ASBA Applications)

The Basis of Allotment to the Non-lnstitutional Bidders (more than Rs. 10 lakhs), who have bid at the Issue Price of Rs. 265 per Equity Share or above, was finalized in consultation with NSE. This category has been subscribed to the extent of 49.34866 times. The total number of Equity Shares allotted in this category is 2,192,241 Equity Shares to 2,796 successful applicants. The category-wise details of the Basis of Allotment are as under: (Sample)

D. Allotment to Employee Reservation (After Rejections) (including ASBA Applications)
The Basis of Allotment to the Eligible Employee Portion, who have bid at the Issue Price of Rs.265 per Equity Share or above, was finalized in consultation with NSE. This category has been subscribed to the extent of 0.73705 times. The total number of Equity Shares allotted in this category is 442,232 Equity Shares to 1,338 successful applicants. The category-wise details of the Basis of Allotment are as under:

The Employee Reservation was for Rs. 150 million as mentioned in the Prospectus representing 600,000 Equity Shares at the price of Rs. 250 per Equity Share net of Employee Discount. The Unsubscribed portion of Rs. 39.44 million representing around 157.768 Equity Shares as Rs. 250 per Equity Share, translating to around 148,837 Equity shares at the Issue Price of Rs. 265 per Equity Share has been spilled over to QIB Portion, Non- Institutional Portion and Retail Portion in the ratio of 75:15:10. The balance 8,931 Equity Shares cannot be allocated to any category, since the Fresh Issue is aggregating to Rs. 5,920 million.

E. Allotment to QIBs
Allotment to QIBs. who have Bid at the Issue Price of Rs.265 per Equity Share or above, has been done on a proportionate basis in consultation with the NSE. This category has been subscribed to the extent of 94.26109 times of QIB Portion. As per the SEBI Regulations, Mutual Funds were Allotted 5% of the Equity Shares of QIB Portion available i.e.. 332,185 Equity Shares and other QIBs and unsatisfied demand of Mutual Funds were Allotted the remaining available Equity Shares i.e., 6,311,520 Equity Shares on a proportionate basis. The total number of Equity Shares Allotted in the QIB Portion is 6,643,705 Equity Shares, which were allotted to 122 successful QIB Bidders. The category-wise details of the Basis of Allotment are as under:

Includes spilled over of 111,629 Equity Shares from Employee Category.

F. Allotment to Anchor Investors
The Company, in consultation with the BRLMs, have allocated 9,798,113 Equity Shares to 20 Anchor Investors (through 16 Applications) at the Anchor Investor Issue Price of Rs. 265 per Equity Share in accordance with the SEBI Regulations. This represents 60% of the QIB Portion.

The IPO Committee of our Company on July 05, 2023 has taken on record the Basis of Allotment of Equity Shares approved by the Designated Stock Exchange, being NSE and has allotted the Equity Shares to various successful Bidders. The Allotment Advice-cum- Intimations and/ or notices have been dispatched to the address of the investors as registered with the depositories. Further, the instructions to the Self Certified Syndicate Banks for unblocking of funds, transfer to Public Issue Account have been issued on July 05,2023 and payment to non-Syndicate brokers have been issued on July 06, 2023. In case the same is not received within ten days, investors may contact the Registrar to the Issue at the address given below. The Equity Shares Allotted to the successful Allottees have been uploaded on July 06, 2023 for credit into the respective beneficiary accounts subject to validation of the account details with the depositories concerned. The Company has filed the Listing application with BSE and NSE on July 07, 2023. The Company has received listing and trading approval from BSE and NSE and the trading will commence on July 10,2023

Note: All capitalised terms used and not specifically defined herein shall have the same meaning as ascribed to them in the Prospectus.

INVESTORS PLEASE NOTE

The details of the allotment made will be hosted on the website of the Registrar to the Issue. KFin Technologies Limited at: www.kfintech.com  All future correspondence in this regard may kindly be addressed to the Registrar to the Issue quoting full name of the First/ sole Bidder, Bid cum Application Form number, Bidder DP ID, Client ID, PAN. date of submission of Bid cum Application Form, address of the Bidder, number of Equity Shares applied for, the name and address of the Designated Intermediary where the Bid cum Application Form was submitted by the Bidder and a copy of the Acknowledgment Slip received from the Designated Intermediary at the address given below:

	KFin Technologies Limited
	(formerly known as KFin Technologies Private Limited)
	Selenium. Tower B. Plot No. 31 and 32. Financial District.
	Nanakramguda, Serilingampally, Hyderabad. Rangareddi - 500 032, Telangana, India Tel: +91 40 6716 2222 / 18003094001
	E-mail: cyientdlm.ipo@kfintech.com. Website: www.kfintech.com
	Investor grievance e-mail: einward.ris@kfintech.com
	Contact Person: M Murali Krishna; SEBI Registration Number: INR000000221

This corrigendum ('Corrigendum') is with reference to the Prospectus filed in relation to the Issue. In this regard, please note the following:
1. In the section titled "The Issue" on page 65 of the Prospectus, the number of Equity Shares available for allocation under the Employee Reservation Portion should be read as 600,000 Equity Shares instead of 600.00 Equity Shares.
2. In the section titled "The Issue" on page 65 of the Prospectus, the number of Equity Shares available for allocation under the Non- Institutional Portion should be read as 3,266,037 Equity Shares instead of 3,226,037 Equity Shares.
3. In the row "Number of Equity Shares available for Altotment/allocation" under the column "OIBs" in the section titled "Issue Structure" on page 335 of the Prospectus, the number of Equity Shares available for allocation to the QIBs should be read as 16,330,189 Equity Shares instead of 21.773,584 Equity Shares.
The Prospectus shall be read in conjunction with this Corrigendum. The information in this Corrigendum supersedes the information provided in the Prospectus to the extent inconsistent with the information in the Prospectus. The Prospectus stands amended to the extent stated hereinabove.
All capitalized terms used in this Corrigendum shall, unless the context otherwise requires, have the same meanings as ascribed in the Prospectus.

THE LEVEL OF SUBSCRIPTION SHOULD NOT BE TAKEN TO BE INDICATIVE OF EITHER THE MARKET PRICE OF THE EQUITY SHARES ON LISTING OR THE BUSINESS PROSPECTS OF CYIENT DLM LIMITED

CYIENT DLM LIMITED has filed the prospectus dated July 1. 2023 with RoC. The Prospectus is available on the website of SEBI at www.sebi.gov.in, the websites of the Stock Exchanges i.e.. BSE and NSE at www.bseindia.com and www.nseindia.com. respectively, and is available on the websites of the BRLMs. i.e.. Axis Capital Limited and JM Financial Limited at www.axiscapital.co.in and www.jmfl.com, respectively and on the website of the Company at www.cyientdlm.com. Potential investors should note that investmeent in equity shares involves a high degree of risk and for details relating to such risk, see "Risk Factors" on page 26 of the Prospectus.

This announcement has been prepared for publication in India and may not be released in the United States. This announcement does not constitute an offer of Equity Shares for sale in any jurisdiction, including the United States, and the Equity Shares offered in the Issue may not be offered or sold in the United States absent registration under the U.S. Securities Act of 1933 or an exemption from registration. Any public offering of the Equity Shares to be made in the United States will be made by means of a prospectus that may be obtained from the Company and that will contain detailed information about the Company and management, as well as financial statements. However, the Equity Shares offered in the Issue are not being offered or sold in the United States.