Information technology (IT) services company Cyient announced on Tuesday, August 20, that its board approved the sale of a 14.5 per cent stake in its subsidiary Cyient DLM Ltd through a block deal. Cyient plans to close the stake sale of its subsidiary, Cyient DLM, on August 21, 2024.
“The Board of Directors of the company, at its meeting held today, August 20, 2024 (Tuesday) has considered and approved the sale of up to 1.14 crore equity shares i.e. approximately 14.5 per cent of the total outstanding equity shareholding of its subsidiary, Cyient DLM Ltd, by way of a share sale utilising the block deal window mechanism provided by the stock exchanges,” said Cyient in a regulatory filing to the stock exchanges.
“The expected date for completion of the sale/ closing is August 21, 2024, or such date as mutually agreed between the company and the buyer,” added Cyient. The IT services firm said it will use the proceeds for capital requirements and debt retirement.
Cyient reported a drop in first-quarter profit, hurt by a greater-than-expected delay in project execution. The company reported a 0.6 per cent revenue decline due to challenges in the railway industry and its connectivity segment. Tech firms have grappled with sluggish demand through the last fiscal year as clients focused on cutting costs in the face of high inflation and interest rates.
However, companies in the technology sector earn a significant share of revenue from the US and benefit from increased client spending due to likely interest rate cuts in the world’s biggest economy later this year, according to analysts. On Tuesday, shares of Cyient settled 6.13 per cent higher at ₹1,934.05 apiece on the BSE.
Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.