Cyient Limited Announces Buyback of Equity Shares Up To 64 Lakhs At INR 1,125 Per Share

Cyient Limited Announces Buyback of Equity Shares Up To 64 Lakhs At INR 1,125 Per Share​

Cyient Limited announced a proposal to buy back up to 64,00,000 fully paid-up equity shares through a tender offer route. The company stated that the initiative is part of its strategy to return surplus cash to shareholders effectively.

The maximum aggregate amount allocated for the buyback does not exceed INR 720,00,00,000 (Indian Rupees Seven Hundred Twenty Crores), with each share offered at a price of INR 1,125 (Indian Rupees One Thousand One Hundred Twenty Five only).

Key details regarding the tender offer are as follows:

Financial Rationale and Offer Details​

The Board of Directors decided on the buyback after evaluating various financial parameters, including available free reserves, cash liquidity, and expected cash flows. The company aims to enhance the overall return to shareholders by reducing the equity base and improving earnings per share, based on the assumption that similar profits can be earned as in the past.

The maximum offer size of INR 720,00,00,000 represents 20.31% and 14.09% of the aggregate of the paid-up share capital and free reserves of the company, respectively, as at March 31, 2026, based on both standalone and consolidated financial statements. The proposed buyback aims to represent up to 5.76% of the existing fully paid-up equity share capital.

The purchase price was determined considering several factors, including trends in the volume weighted average market prices of the company's shares on BSE and NSE. Specifically, the offer included a premium of 17.71% and 16.53% to the volume weighted average market price during the three months ending April 14, 2026.

Stakeholder and Financial Position​

The buyback is open to all Eligible Shareholders, excluding promoters, members of the promoter group, and persons in control as of the Record Date. The company noted that promoters and the promoter group have expressed their intention not to participate in the buyback, meaning their shares will not be considered for computing the entitlement ratio, which benefits eligible shareholders by giving them a higher buyback entitlement ratio.

The financial standing of the company was reviewed by the Board of Directors and the Statutory Auditor. The auditor's report confirmed that the proposal is subject to shareholder approval and noted that the proposed amount is in compliance with regulatory requirements.

Promoter Group Holding​

As per the Public Announcement, the aggregate shareholding details related to the promoter group are as follows:

Methodology and Process​

The buyback will be implemented using the "Mechanism for acquisition of shares through Stock Exchanges pursuant to Tender-Offers under Takeovers, Buyback and Listing," with BSE designated as the Designated Stock Exchange for this process. The company has appointed Axis Capital Limited as its registered broker to facilitate the tender process through the stock exchange mechanism.

The buyback is open to all Eligible Shareholders holding equity shares in physical or electronic form. All eligible shareholders will receive a Letter of Offer along with a tender offer form detailing their respective entitlement.

Compliance and Oversight​

The company confirmed that there are no defaults subsisting regarding the repayment of debentures, interest payments thereon, or the payment of dividends to any shareholder. Furthermore, the aggregate amount of the buyback does not exceed 25% of the total paid-up capital and free reserves of the company as per audited financial statements as on March 31, 2026.

CYIENT Stock Price Movement​

Cyient Limited stock climbed today, closing at ₹877.95 after shares rallied by 3.94% in post-market activity. The company traded a total volume of 1.69 million shares during the session.