Cyient Ltd to buy back up to 64 lakh shares for Rs 720 crore

What Cyient announced

Cyient Ltd filed a submission pursuant to Regulation 5(v) of the SEBI (Buy‑Back of Securities) Regulations, 2018 on 15 June 2026. The filing confirms the company’s intention to buy back up to 64 lakh fully paid‑up equity shares at a price of Rs 1,125 per share. The total outlay for the buyback will not exceed Rs 720 crore. The buyback will be carried out on a proportionate basis through a tender‑offer route, with the record date to be determined by the Board.

Terms of the buyback

• Number of shares: Up to 64,00,000 shares (face value Rs 5 each).
• Buyback price: Rs 1,125 per share.
• Maximum amount: Rs 720 crore.
• Share‑capital impact: The buyback represents 20.31% of the aggregate total paid‑up share capital and 14.09% of free reserves based on the audited financial statements as of 31 March 2026 (stand‑alone and consolidated).
• Small‑shareholder reservation: 15% of the shares offered for buyback, or the number of shares held by small shareholders whose market value does not exceed Rs 2 lakh, whichever is higher, will be reserved for those small shareholders as per Regulation 6 of the Buy‑Back Regulations.
• Approval timeline: The Board approved the proposal on 23 April 2026 (Resolution 1/2025‑26). Shareholders approved it via a special resolution in a postal ballot on 10 June 2026.
• Regulatory compliance: The buyback is subject to all applicable provisions of the Companies Act 2013, Companies (Share Capital and Debentures) Rules 2014, SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015, and the SEBI (Buy‑Back of Securities) Regulations 2018, together with any required approvals from lenders or foreign regulators such as the U.S. SEC.

How the tender offer will work

The tender offer will be open to all shareholders except promoters and members of the promoter group. Shares will be tendered on a proportionate basis, meaning each eligible shareholder can tender a number of shares proportional to their holding. The company will allocate the reserved portion for small shareholders first; any unfilled reservation will be added to the general pool. The exact record date—the date on which shareholdings are fixed for eligibility—will be announced by the Board before the offer opens.

Key facts at a glance

Why this matters for investors

The buyback reduces the number of shares outstanding, which can improve earnings per share and return on equity if the company’s earnings remain stable. Because the buyback price of Rs 1,125 is above the prevailing market price (the filing does not disclose the market price), shareholders who tender may receive a premium. The reservation for small shareholders ensures that retail investors with modest holdings are not crowded out by larger institutional participants. The proposal also signals that the board believes the company has sufficient free reserves and cash to fund a sizeable repurchase, subject to lender consents and any required regulatory clearances.

Conclusion

Cyient’s tender‑offer buyback, approved by its board and shareholders, targets up to 64 lakh shares for a maximum outlay of Rs 720 crore. The offer will be executed on a proportionate basis, with a dedicated slice for small shareholders. The exact record date and tender‑offer timeline will be communicated by the board in due course, and the buyback will proceed subject to all statutory and regulatory approvals.

"The Board hereby approves the buyback of up to 64 lakh shares for an amount of Rs 720 crore, representing 20.31% of paid‑up capital and 14.09% of free reserves." – Board Resolution, 23 April 2026