Cyient is selling its 14.5 percent stake in its subsidiary Cyient DLM via a block deal on Wednesday

Cyient’s board of directors approved the sale of the company’s 14.50% stake in its subsidiary Cyient DLM Limited via a block deal in a meeting on Tuesday. The expected completion date of the sale is August 21, according to a company statement.

The company has not yet announced the offer price.

Cyient held 66.66% of Cyient DLM at the end of the June quarter.

The announcement came after the market closed and Cyient shares closed at Rs 1,933 on the NSE, up Rs 112.05 or 6.15% from Monday’s closing price. Cyient DLM shares, meanwhile, closed at Rs 789.60, up Rs 4.85 or 0.62%.

Cyient DLM’s revenue for FY 2024 was Rs 1,192 crore and Cyient’s revenue for the same period was Rs 7,147 crore. Consequently, Cyient DLM’s revenue for FY 2024 was 17% of the former’s revenue. Cyient DLM’s net assets as of March 31, 2024 were Rs 909 crore compared to Cyient’s net assets of Rs 4,557 crore. This makes Cyient DLM’s net assets 20% of the latter’s total net assets as of March 31, 2024. The company said that it currently intends to use the capital proceeds from the proposed transaction to meet the company’s capital requirements for key investments, including for the recently announced semiconductor business to support its growth, as well as for various organic and inorganic investments and repayment of debt of the company.(Disclaimer: The recommendations, suggestions, views and opinions expressed by the experts are their own. They do not reflect the views of Economic Times.)