On August 21, a significant 14.5% stake in Cyient DLM was sold through a block deal, with the information technology firm Cyient, the promoter, likely being the seller. Approximately 1.2 crore shares of Cyient DLM were traded at a floor price of ₹766 per share, resulting in a total transaction value of ₹883.20 crore.
While the specific parties involved in the transaction couldn’t be immediately confirmed, Cyient had previously announced that its board had approved the sale of a 14.5% stake in its subsidiary, Cyient DLM, through a block deal.
Cyient disclosed plans to use the proceeds from the stake sale to meet capital requirements and reduce debt. The company stated, “We intend to allocate the funds from this transaction towards capital needs, including key investments in our newly launched semiconductor business to drive growth, various organic and inorganic investments, and debt retirement.”
Brokerage firm JPMorgan expressed approval of Cyient’s decision to divest its stake in Cyient DLM to fund investments in its semiconductor business, mergers and acquisitions (M&A), and debt repayment. JPMorgan highlighted that Cyient’s DET business (semiconductor vertical) had a debt of $47 million as of the end of June, which could be partially repaid using the proceeds from this sale.
As per Cyient DLM’s latest shareholding data for the June quarter, promoter Cyient held a 66.66% stake in Cyient DLM.
For FY24, Cyient DLM generated revenue of ₹1,192 crore, contributing 17% to Cyient’s total revenue of ₹7,147 crore. The net worth of Cyient DLM stood at ₹909 crore as of March 31, 2024, representing 20% of Cyient’s total net worth of ₹4,557 crore.
