Cyient DLM shares worth ₹883 Crore change hands

21 Aug 2024 , 10:29 AM

Cyient DLM Ltd.’s shares fell as much as 3% after 1.2 Crore shares, or 14.5% of the company’s total equity, changed hands in a block sale on Wednesday.

At around 10.18 AM, Cyient DLM was trading 2.46% lower at ₹768.70, against the previous close of ₹788.05 on NSE. The counter touched an intraday high and low of ₹791, and ₹765, respectively.

The overall transaction value is estimated to be ₹883 Crore.

Shares traded at an average price of ₹766 per share, up to 3% lower than Tuesday’s closing price.

JPMorgan, a global broking firm, said the profits will be used for mergers and acquisitions and debt reduction, as well as for semiconductor investments.

According to the broking, Cyient’s DET business owed $47 million as of June 2024, and they estimate a portion of that debt might be serviced with selling revenues.

JPMorgan also stated that the automobile sector could be a target for mergers and acquisitions.

As of the June quarter shareholding pattern, the promoter owned 66.66% of Cyient DLM. Domestic mutual funds also own a 16.84% interest in the company.

Cyient DLM also reported revenue of ₹1,192 Crore in FY24, accounting for 17% of Cyient’s total revenue of ₹7,147 Crore during the same year. The net worth of Cyient DLM was ₹909 Crore as of March 31, 2024, representing for 20% of Cyient’s overall net worth of ₹4,557 Crore.

For feedback and suggestions, write to us at [e-mail]