Buyback Alert: IT company approves ₹720 crore repurchase plan at 20% premium

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Cyient Ltd. announced a share buyback on Thursday, April 23, worth ₹720 crore. The company plans to repurchase 64 lakh equity shares, representing 5.76% of its total paid-up equity share capital, according to an exchange filing.

The buyback price has been set at ₹1,125 per equity share, implying a 20% premium to Cyient’s closing price on Wednesday.

Members of the promoter and promoter group of the company will not buyback the proposed buyback.

The buyback will be carried out through the tender offer route, wherein the company buys back shares from existing shareholders at a fixed price, typically at a premium to the prevailing market price.

The record date for the bonus issue of shares, if any, is yet to be determined.

The companies issue bonus shares to capitalise on their free reserves, increase their Earnings Per Share (EPS) and paid-up capital, along with reducing the reserves. Shareholders are issued these shares at no additional cost and hence are also known as free shares.

Only those investors will be eligible for bonus shares who will buy the stock before the ex-date. If an investor purchases the shares on the ex-date or after that, they will not be eligible to get bonus shares.

Based on the March quarter shareholding pattern, promoters of Cyeint had a 23.28% stake in the company.

Shares of Cyient ended 2.80% lower at ₹934.90 on Thursday. The stock has declined over 16% so far this year.



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