Cyient Limited announced an equity share buyback program of up to 64,00,000 equity shares, representing approximately 5.76% of its existing paid-up capital. The buyback will be conducted at a price of INR 1,125 per share, with an aggregate amount not exceeding INR 720,00,00,000. This initiative is aimed at returning surplus cash to shareholders and enhancing long-term shareholder value. The buyback will be executed through the tender offer route.
Cyient Announces Major Share Buyback Program
Cyient Limited has officially announced a significant share buyback program, signaling a strategic move to return capital to its shareholders. The company plans to repurchase up to 64,00,000 fully paid-up equity shares of face value INR 5 each. This represents approximately 5.76% of the company’s existing paid-up equity share capital as of March 31, 2026.
Key Buyback Details
The buyback will be conducted at a price of INR 1,125 per equity share. The total aggregate amount for this buyback will not exceed INR 720,00,00,000 (Indian Rupees Seven Hundred Twenty Crores). This figure represents 20.31% of the company’s standalone paid-up share capital and free reserves, and 14.09% on a consolidated basis, as per the latest audited financial statements as of March 31, 2026.
Objectives and Rationale
The primary objectives behind this buyback initiative include returning surplus cash to equity shareholders in proportion to their shareholding, thereby enhancing overall shareholder returns. Additionally, the program aims to improve return on equity by reducing the equity base, leading to a potential long-term increase in shareholder value. The buyback also offers shareholders an option to liquidate their holdings or increase their stake without additional investment.
Operational Details
The buyback will be implemented through the tender offer route, adhering to the Securities and Exchange Board of India (Buy-back of Securities) Regulations, 2018. A specific reservation of 15% of the total number of equity shares to be bought back will be allocated for small shareholders, as defined by the regulations. The company has confirmed that the funds for the buyback will be sourced from its current surplus, cash balances, and internal accruals, and will not involve borrowed funds.
Shareholder Eligibility and Process
All equity shareholders, excluding promoters and members of the promoter group, as of the determined record date will be eligible to participate in the buyback. The buyback process will be managed via the stock exchanges, following SEBI’s established mechanisms for such transactions. The company will announce a Record Date to determine eligible shareholders and will provide a detailed Letter of Offer outlining the participation procedure.
Regulatory Compliance
The company has ensured that all necessary regulatory approvals and compliances, including those under the Companies Act, 2013, and relevant SEBI regulations, are being adhered to. The board has passed the necessary resolutions, and shareholder approval via postal ballot has been obtained. The buyback is expected to be completed within one year from the date of passing the special resolution.
Auditor’s Confirmation
The statutory auditors, S.R. Batliboi & Associates LLP, have provided a report confirming that the company has made a full inquiry into its affairs and prospects. They have opined that the company will be able to meet its liabilities and will not be rendered insolvent within a year, ensuring the solvency requirements for the buyback are met. The amount of permissible capital payment has also been determined in accordance with applicable regulations.
Source: BSE
