Cyient DLM shares worth ₹883 crore change hands

Shares of Cyient DLM Ltd. fell 3% after 1.2 crore shares, or 14.5% of the company’s total capital, changed hands in a block sale on Wednesday.

At around 10.18 am, Cyient DLM was trading 2.46% lower at ₹768.70, from its previous close of ₹788.05 on NSE. It touched an intraday high and low of ₹791 and ₹765, respectively.

The total value of the transaction is estimated to be ₹ 883 crore.

The stock was trading at an average price of ₹766 per share, down 3% from Tuesday’s closing price.

JPMorgan, the global brokerage firm, said the profits would be used for mergers and acquisitions and debt reduction, as well as investments in the semiconductor sector.

Cyient’s DET debt as of June 2024 was $47 million, according to the brokerage. The company estimates that some of that debt could be covered by the sale proceeds.

JPMorgan also said the automotive sector could become a target for mergers and acquisitions.

As per the share structure, in the June quarter, the promoter held 66.66% of Cyient DLM. Domestic investment funds also hold 16.84% of the company.

Cyient DLM also reported a revenue of ₹1,192 crore in FY24, which is 17% of Cyient’s total revenue of ₹7,147 crore in the same year. Cyient DLM’s net worth was ₹909 crore as on March 31, 2024, which is 20% of Cyient’s total net worth of ₹4,557 crore.

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