On August 20, IT services company Cyient announced that its board has approved the sale of a 14.5% stake in its subsidiary, Cyient DLM, through a block deal. The floor price for the sale is expected to be set at Rs 748.65 per share, reflecting a nearly 5% discount compared to the Rs 788.05 per share closing price on the NSE.
It will offload up to 1.14 crore equity shares of Cyient DLM, around 14.5% of its total outstanding equity, through block deal facility available on exchanges. The sale will get completed by 21st August 2024 or any other date mutually agreed upon between Cyient and the buyer.
The money generated from the sale would be used toward capital requirements of Cyient, including some key investments it is making in its semiconductor business, other organic and inorganic investments, and debt repayment. Axis Bank is acting as an investment banker to the deal.
As at June 30, 2024, Cyient owned 66.66% of Cyient DLM. During the financial year 2024, Cyient DLM contributed for revenue amounting to Rs 1,192 crore, which is 17% of the consolidated revenue of Cyient of Rs 7,147 crore. The net worth of Cyient DLM as at March 31, 2024, was Rs 909 crore, which is 20% of the net worth of Cyient as at March 31, 2024.
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Source: Moneycontrol
News Desk
