Cyient on Tuesday announced that its board has approved the sale of 14.50% stake in its subsidiary, Cyient DLM through block deal.
In a regulatory filing, Cyient stated, The board of directors has considered and approved the sale of up to 1,14,99,390 equity shares i.e. approximately 14.50% of the total outstanding equity shareholding of its subsidiary, Cyient DLM, by way of a share sale utilising the block deal window mechanism provided by the stock exchanges (in one or more tranches).
The expected date for completion of the sale is 21 August 2024 or such date as mutually agreed between the company and the buyer.
The company said that its current intent is to utilise the capital proceeds arising from the proposed transaction towards addressing its capital requirements in key investments including in the recently announced semiconductor business to support its growth, various organic and inorganic investments and retirement of debts of the company.
Cyient DLM, a subsidiary of Cyient, is one of the leading integrated electronic manufacturing services (EMS) and solutions providers with capabilities across the value chain and the entire life cycle of a product.
Cyient is a consulting-led, industry-centric, global technology solutions company. It currently operates through eight strategic business units: aerospace & defense; transportation; industrial, energy, and natural resources; semiconductor, internet of things and analytics; medical and healthcare; utilities & geospatial; communications and design-led manufacturing (Cyient DLM).
Shares of Cyient rallied 3.28% to Rs 1,997.40 while those of Cyient DLM fell 2.37% to Rs 769.85 on the BSE.
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