DBT Bureau
Bengaluru, 21 August 2024
Engineering services company, Cyient will conclude the sale of 14.5% stake in its subsidiary- Cyient DLM through block deal for which it has received board approval earlier.
Company’s board of directors in a meeting held on Tuesday approved the stake sale in Cyient DLM via block deal. It has said that the expected date for completion of the sale is likely to be August 21 (Wednesday).
The Hyderabad-headquartered company has said that it would utilise the proceeds from the stake sale for its capital requirements and retirement of debts.
“Our current intent is to utilize the capital proceeds arising from the Proposed Transaction towards addressing: The Company’s capital requirements, including but not limited to key investments in our recently announced Semiconductor business to support its growth, various organic and inorganic investments; and retirement of debts of the Company,” said Cyient in an exchange filing.
As of June 30, 2024, Cyient held 66.66% stake in Cyient DLM as per the exchange data.
The revenue of Cyient DLM for FY24 stood at Rs 1,192 crore and the revenue of the Cyient for the same period was Rs 7,147 crore.
The share price of Cyient has reacted positively to the stake sale proposal. It is currently trading 2.82% up at Rs 1,989.45 in the morning trade on NSE. It is up around 14.6% in the last five trading sessions.
