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

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.

By Meghna Sen

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.

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.