Cyient Limited Buyback 2019

Cyient Inc. (formerly Infotech Enterprises) is focused on engineering, manufacturing, data analytics, and networks & operations. Infotech Enterprises Ltd. was established in 1991 in Hyderabad, India.

Infotech Enterprises rebranded as Cyient in 2014. It had 15,000+ employees across 21 global locations as of March 2018. The company featured among the top 30 outsourcing companies in the world as of 2018.

They have delivered a wide range of services and solutions to a diversified client base of 300 clients, including 29 Fortune 500 companies, across 11 industries that include:

1. Aerospace and Defense
2. Communications
3. Heavy Equipment and Industrial
4. Infrastructure.
5. Medical tech and Healthcare
6. Oil & Gas
7. Semiconductors etc.

Buy Back Offer Deal:

Buyback Type: Open Market
Buyback Opening Date: Feb 12 2019
Buyback Closing Date: Apr 11 2019
Buyback Offer Amount: ₹ 200 Cr
Date of Board Meeting approving the proposal: Jan 17 2019
Date of Public Announcement: Jan 17 2019
Buyback Offer Size: 2.54%
Buyback Number of Shares: 28,57,142
FV: 5
Buyback Price: ₹ 700 Per Equity Share

Details of Buyback:

The Board of Directors of the Company at its meeting held today has approved the buyback by the Company of its fully paid-up equity shares having the face value of Rs. 5/- (Rupees Five only) each ("Equity Shares") at a price not exceeding Rs. 700 per Equity Share ("Maximum Buyback Price") and for an aggregate amount not exceeding Rs. 200,00,00,000 ("Maximum Buyback Size"), from " open market"  through the stock exchange mechanism

Salient financial parameters:

Particulars(in Crs) FY 17-18 FY 16-17 FY 15-16
Gross Revenue 1,632.00 1,373.60 1,359.06
Expenses 1,116.00 1,066.00 1,064.00
PAT 401.00 236.00 233.00
EPS 35.00 21.00 20.00

How to Participate in buyback?

In this method of share Buyback, the company will be purchasing stocks from existing shareholders of the company directly from the market. Example: “Cyient Limited ” announces buyback plan of its shares up to value of Rs 700, it means that the company will be purchasing shares of "Cyient Limited" from the open market at a price not exceeding Rs.750 per share. Scenario 1- If the share price is below Rs. 700 in that case, the company will put buy order at Current Market Price and purchase shares. Scenario 2- If the share price is above Rs. 700, in that case, the company will put buy order at Rs. 700 only and if someone is ready to sell at Rs.700 or less then only company will get back shares.

Profit from the buyback on the bases of acceptance Ratio:

NA

Recommendation:

Cyient Limited Buyback 2019 rating by InvestorZone team => 2/10 1-5: Fair 5-7: Good 7-10: Excellent [ As it is the Open-Market Buyback, so no arbitrage for the investors. ]

    Byeback of client is on Rs 700. For equity share worth rs 200 CR.best offer it will go up to rs 660 within 3 days

    Persistent Systems To Consider Proposal For Buyback Of Co’s Shares On Jan 27-28

    Selling in Cyient tech. People bought because of Buyback but as the company didn’t announce yesterday most are selling.

    Even if the company comes up with a Buyback , they have Reserve and Surplus of only 2005 Cr and Cash in hand of 700 Cr. So Do not expect it to be a very big buyback.

    Cyient board meeting concluded without taking any decision on buyback

    May consider another meeting for consideration

      How badly do you think it will affect the stock in short term? Your advice on what to do tomorrow.. hold or sell? I bought some 60 shares at Rs. 600.

      Kudos for your continuous support! Great work.

      Wow..This is new people just considering buyback and deferring it. Even Monte Carlo and Responsive did something similar.

    Quick question on Linde India. Delister offer is going on. What price is best for submitting the form?