Cyient DLM IPO fully subscribed on Day 1; ends trade with 2.65 times subscription Electronic manufacturing services firm Cyient DLM’s initial public offer received 2.65 times subscription on the first day of share sale on Tuesday.The company’s Initial Public Offer (IPO) got bids for 3,53,76,320 shares against 1,33,32,297 shares on offer, as per NSE data.The portion for Retail Individual Investors (RIIs) was subscribed 9.82 times and the category for non-institutional investors received 3.57 times subscription. The Qualified Institutional Buyers (QIBs) part got 3 per cent subscription.The company’s initial public offer has a fresh issue aggregating up to Rs 592 crore. The IPO is purely fresh issue of equity shares with no offer for sale (OFS) component.Price range for the offer is at Rs 250-265 a share. Cyient DLM has mobilised Rs 260 crore from anchor investors.Funds raised through the IPO would be utilised for funding incremental capital requirements, capital expenditure, debt payment, achieving inorganic growth through acquisitions as well as for general corporate purposes.
Retail inflation in milk was reported at 8.85% in May 2023. The milk inflation has remained elevated at over 6% since August 2022. Despite India being the largest milk producer since 1998, the commodity has been the second biggest factor after cereals such as rice and wheat in driving up retail inflation in the last fiscal.
Milk has the second highest weight in the food and beverages basket of the consumer price index at 6.61%, a notch lower than cereals and products with a 9.67% weight. Organised players, including Mother Dairy and Amul, hiked prices multiple times in the last one year citing higher fodder cost, robust demand and some impact due to reports of lumpy skin disease.
Industry sources said feed cost, which has a share of more than 65% in the cost of production of milk, has increased to Rs 20/kg from Rs 8 a year ago. The finance ministry in April had attributed the elevated milk inflation to a demand supply mismatch and said it could be one of the factors apart from volatile international crude oil prices and constrained supplies of milk would influence the country’s inflation trajectory.
“Milk production has been impacted by a lumpy skin disease infecting millions of cattle in late 2022,” the ministry said in the monthly economic review, adding that the vaccination drive against the disease is expected to curb the spread and immune the cattle against the skin disease.
According to official data, currently India is the world’s largest milk producer, and has a share of 23% in global milk production. For the first time in decades, the country’s milk production is likely to have stagnated in 2022-23 due to Lumpy Skin Disease in cattle across several states and the lagged effect of Covid-19 in the form of stunting of the animals, a senior official with department of animal husbandry and dairying recently had stated. The milk production was estimated at 221 million tonne in 2021-22.