Cyient DLM sees Rs 883.20 cr block deal as promoter Cyient offloads 14.5% stake

As per Cyient DLM's latest June quarter shareholding data, promoter Cyient owned a 66.66 percent stake in Cyient DLM.

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26 Aug, 2025 12:21

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As much as 14.5 percent stake in Cyient DLM was sold through a block deal on August 21, with its promoter, information technology firm Cyient being the likely seller in the transaction. Around 1.2 crore shares of Cyient DLM changed hands at a floor price of Rs 766 per share, taking the overall transaction value to Rs 883.20 crore.

Moneycontrol could not immediately ascertain the parties involved in the transaction, but the promoter entity, Cyient announced that its board had given a greenlight to the sale of 14.5 percent stake in subsidiary Cyient DLM through block deal.

Following the block deal, shares of Cyient surged 6 percent to high of Rs 2,049.95 while those of arm Cyient DLM were down 3 percent to low of Rs 765 on the NSE.

Cyient also revealed plans to use the proceeds from the stake sale for capital needs and debt repayment. "Our intention is to allocate the funds from the proposed transaction towards meeting the company’s capital requirements, including key investments in our recently launched semiconductor business to fuel its growth, various organic and inorganic investments, and the retirement of company debts," Cyient stated.

As per Cyient DLM's latest June quarter shareholding data, promoter Cyient owned a 66.66 percent stake in Cyient DLM.

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Brokerage firm JPMorgan stands impressed by Cyient's plans to divest stake in Cyient DLM to utilise proceeds for investments in semiconductor business, M&A and debt repayment. The global brokerage noted that Cyient's DET business (semiconductor vertical) currently has a debt of $47 million as of June end, which according to JPMorgan can be partly repaid using proceeds from the stake sale.

As for exploring options for inorganic growth, JPMorgan views automobile as one such sector where Cyient can look for potential mergers and acquisitions. The brokerage has an 'overweight' call on Cyient with a price target of Rs 2,100.

Brokerage firm Kotak Institutional Equities believes Cyient DLM opportunity is attractive for Cyient, but not without a few risks. "Success would boil down to a choice of programs and the ability to leverage IP (Intellectual Property) to minimise custom chip design timelines," the brokerage said. KIE has a 'buy' call on Cyient with a price target of Rs 2,050.

Cyient DLM also generated revenue of Rs 1,192 crore for FY24, making up 17 percent of Cyient's total revenue of Rs 7,147 crore for the same period. The net worth of Cyient DLM stood at Rs 909 crore as of March 31, 2024, accounting for 20 percent of Cyient's total net worth of Rs 4,557 crore.

Also Read | Cyient to sell 14.5% stake in Cyient DLM via block deal, floor price likely at Rs 748.65 per share

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