Cyient Limited Announces Plan to Buy Back Up To 64 Lakh Equity Shares at INR 1,125 per Share

Cyient Limited Announces Plan to Buy Back Up To 64 Lakh Equity Shares at INR 1,125 per Share​

Cyient Limited has announced plans to repurchase up to 64 lakh fully paid-up equity shares. The buyback is proposed through a tender offer route and aims to return surplus cash to shareholders while improving the company's financial structure.

The proposal was approved by the Company's Board of Directors on April 23, 2026, and subsequently received shareholder approval via a postal ballot on June 10, 2026. The offer includes up to 64 lakh equity shares, each having a face value of INR 5. These shares are being offered for an aggregate amount not exceeding INR 720,00,00,000 at a price of INR 1,125 per equity share.

Financial and Offer Details
The Buyback Offer Size represents 5.76% of the existing fully paid-up equity share capital based on standalone financial statements and 14.09% based on consolidated financial statements as of March 31, 2026. The company confirmed that the required funds for the buyback are intended to be met from current surplus and cash balances or internal accruals and will not come from borrowed funds.

The maximum amount permissible for this buyback is INR 8,862 Mn, which represents 25% of the total paid-up capital and free reserves (whichever is lower) as per audited financial statements at March 31, 2026.


Rationale and Objectives of the Buyback
The Board stated that the buyback is intended to serve several strategic objectives, including:

• Enhancing overall return to shareholders by returning surplus cash in proportion to their shareholding.
• Improving Return on Equity (ROE) through reduction of the equity base for long-term increase in shareholder value.
• Offering a mechanism for equity shareholders to liquidate or potentially increase their percentage shareholding without additional investment.

The company also confirmed that 15% of the shares proposed for buyback, or the number of shares entitled to small shareholders (whichever is higher), will be reserved for Small Shareholders during the tender offer process.

Implementation and Governance
The Company has appointed Axis Capital Limited as the merchant banker and KFin Technologies Limited as the Registrar for the Buyback. The Board also constituted a dedicated "Buyback Committee-2026," comprising Mr. Sunil Bhumralkar (Independent Director), Mr. P R Ramesh (Independent Director), Prof. Madan Pillutla (Independent Director), Mr. Shrinivas Kulkarni (Chief Financial Officer), and Mr. Sudheendhra Putty (Company Secretary and Compliance Officer).

Compliance and Solvency Declaration
The Board confirmed its thorough inquiry into the affairs and prospects of the Company, concluding that immediately following the approval dates—April 23, 2026, and June 10, 2026—there will be no grounds on which the company can be found unable to pay its debts.

The Board also approved the draft declaration of solvency, confirming that the Company is able to meet its liabilities as they fall due and will not be rendered insolvent within one year from either the board meeting or the members' resolution date. The proposal adheres to regulatory limits regarding financial strength; for instance, the total amount required (INR 720 Crores) does not exceed 25% of the aggregate of paid-up capital and free reserves as per the audited financials dated March 31, 2026.

Promoter Holdings
As disclosed in the explanatory statement, the total shareholding of the Promoter and Promoter Group stands at 23.28%, with Vineyard Point Software Private Limited (a Promoter Group entity) holding 12.61%. The Promoters have expressed their intention not to participate in the buyback through the tender offer route.

CYIENT Stock Price Movement​

Cyient Limited closed today after posting a solid rally, gaining 2.51% to settle at ₹897 following positive market sentiment. The stock traded within an active session, seeing a high of ₹905.45 and dipping as low as ₹878.85 on a total volume of 1.01 million shares.