Cyient slumps on report PE firm Carlyle may offload entire stake

Cyient fell 10.81% to Rs 558 at 13:40 IST on BSE on reports that US-based private equity firm Carlyle is looking to sell its entire 10% in the company.

Meanwhile, the BSE Sensex was down 48.93 points, or 0.18%, to 26,961.21.

On BSE, so far 2.30 lakh shares were traded in the counter, compared with an average volume of 9,282 shares in the past one quarter.

The stock hit a high of Rs 619 and a low of Rs 526 so far during the day. The stock hit a record high of Rs 641 on 15 October 2015. The stock hit a 52-week low of Rs 440.70 on 17 October 2014.

The stock had outperformed the market over the past one month till 15 October 2015, rising 7.26% compared with 5.07% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 11.67% as against Sensex's 4.21% decline.

The mid-cap company has an equity capital of Rs 56.24 crore. Face value per share is Rs 5.

According to reports, Carlye is evaluating plans to sell its stake in Cyient, which it holds through First Carlyle Ventures Mauritius. Talks are in the preliminary stage and the exit may either be through a block deal or secondary market sale, reports added.

First Carlyle Ventures Mauritius held 1.10 crore shares, or 9.88% stake, in Cyient as on 30 June 2015. At current market price, the private equity firm's entire stake is valued at Rs 619.34 crore.

Carlyle had picked up the stake in Cyient on 11 July 2012 for around Rs 210 crore.

Shares of Cyient jumped 6.74% to Rs 625.65 yesterday, 15 October 2015, after the company reported good Q2 September 2015 results during trading hours that day.

Cyient's consolidated net profit rose 9.25% to Rs 98.52 crore on 13.32% increase in total income to Rs 800.53 crore in Q2 September 2015 over Q2 September 2014.

Cyient acquired 74% shareholding in Rangsons Electronics, India (and its wholly owned subsidiary Techno Tools Precision Engineering, India), on 4 February 2015. The company also acquired 51% shareholding in Invati Insights, India (and its wholly owned subsidiary Invati Insights LLC, USA), on 15 October 2014 and the same has been consolidated from 16 October 2014. Hence, the results for the quarter and half year ended 30 September 2015 and 30 September 2014 are not strictly comparable.

Cyient is a global provider of engineering, data analytics, network and operations solutions.

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