The company is yet to announce the offer price.
Cyient held 66.66% share in Cyient DLM at the end of the June quarter.
The announcement was made after market hours and shares of Cyient ended at Rs 1,933 on the NSE, gaining by Rs 112.05 or 6.15% over the Monday closing price. Meanwhile, Cyient DLM’s shares closed at Rs 789.60, up by Rs 4.85 or 0.62%.
The revenue of Cyient DLM for the financial year 2024 stood at Rs 1,192 crore and the revenue of the Cyient for the same period was Rs 7,147 crore. Consequently, the revenue of Cyient DLM was 17% of the revenue of the former in the financial year 2024.The net worth of Cyient DLM as on March 31, 2024 was Rs 909 crore as compared to the net worth of Cyient at Rs 4,557 crore. This makes the net worth of Cyient DLM 20% of the total net worth of the latter as on March 31, 2024.The company said that its current intent is to utilise the capital proceeds arising from the proposed transaction towards addressing the company’s 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.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)