Cyient DLM huge block deal: Key things you need to know

Shares of Cyient DLM will be on investors' radar on Wednesday, August 21, as parent firm Cyient's board of directors, at its meeting held on August 20, 2024 (Tuesday), 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.

On Tuesday, Cyient shares settled over 6% higher at ₹1,934.05 apiece on the BSE, while Cyient DLM ended at ₹788.50, up 0.32%.

Other key details you need to know

The revenue of Cyient DLM for the financial year 2024 was ₹1,191.9 crore, and the revenue of Cyient for the financial year 2024 was ₹7,147.2 crore. Consequently, the revenue of Cyient DLM was 17% of the revenue of the company in the financial year 2024.

The expected date for completion of the sale or closing is August 21, 2024.

Use of capital proceeds

Cyient said that its current intent is to utilise the capital proceeds arising from the proposed transaction towards addressing:

• The company’s capital requirements, including but not limited to key investments in its recently announced semiconductor business to support its growth, various organic and inorganic investments, and
• retirement of the company's debts.

Cyient DLM listing

Shares of electronic manufacturing services firm Cyient DLM made their debut on exchanges in July 2023 with a huge premium of 52% against the issue price of ₹265. The initial public offering (IPO) of Cyient DLM was overall subscribed 67.30 times.

The IPO had a fresh issue aggregating up to ₹592 crore. There was no offer-for-sale (OFS) component.

The company's IPO had a price range of ₹250–265 per share. Cyient DLM, a subsidiary of Cyient, is a leading integrated EMS and solutions provider with a focus on the entire life cycle of a product, including design, build, and maintenance.