Cyient DLM Limited has submitted newspaper publications to stock exchanges regarding its postal ballot for the variation in utilization of Initial Public Offering (IPO) proceeds. The company filed the newspaper publications with BSE and NSE under Regulation 30 of SEBI Listing Regulations, following its postal ballot notice for reallocating Rs. 36.85 crores from capital expenditure requirements to incremental working capital needs.

Regulatory Compliance and Publication Details

The company submitted copies of newspaper publications published in Business Standard (English) and Mana Telangana (Telugu) on February 7, 2026, along with PAS-1 Notice published in both newspapers on February 10, 2026. These publications were made in connection with the postal ballot notice dated January 20, 2026, ensuring compliance with regulatory requirements for shareholder communication.

IPO Proceeds Reallocation Framework

The proposed variation involves reallocating Rs. 36.85 crores from "Funding Capital Expenditure of our Company" to "Funding Incremental Working Capital Requirements of our Company." This amount represents approximately 6.20% of the total IPO proceeds of Rs. 592.66 crores raised through the fresh issue of 2,23,64,653 equity shares.

Current Utilization Status

As per the PAS-1 notice, the company has achieved significant progress in utilizing IPO proceeds across various objectives. The working capital requirements have been substantially utilized while capital expenditure utilization remains lower, justifying the proposed reallocation.

Strategic Rationale for Reallocation

The company cited several factors driving the proposed reallocation, including changes in the global electronics manufacturing landscape since the July 2023 IPO. These shifts have impacted export markets through tariff-related developments and supply chain realignments, causing global OEMs to reassess expansion timelines and capital deployment plans.

Concurrently, Cyient DLM has experienced healthy operational growth with increased customer mandates across Build to Print (B2P) and Build to Specification (B2S) offerings. This growth has expanded working capital needs for procurement cycles, inventory buildup, and timely customer fulfillment beyond original projections.

Postal Ballot Process Timeline

The postal ballot is being conducted through remote e-voting in compliance with Ministry of Corporate Affairs and SEBI circulars, with KFin Technology Limited facilitating the process.

Financial Impact and Compliance

The proposed reallocation is expected to have a favorable impact on the company's financial position by strengthening operational capabilities and reducing dependence on external short-term financing. The variation complies with Sections 13(8) and 27 of the Companies Act, 2013, and SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, with no exit offer obligations as the reallocation represents less than 25% of total IPO proceeds.

Nippon India Mutual Fund has disclosed the sale of shares in Cyient DLM Limited under regulatory compliance requirements, reducing its shareholding position in the engineering services company.

Transaction Details

The mutual fund sold 75,000 shares of Cyient DLM Limited through open market transactions conducted between January 21, 2025, and January 29, 2026. This sale represents 0.09% of the company's total share capital.

Shareholding Changes

Following the transaction, Nippon India Mutual Fund's stake in Cyient DLM Limited has been reduced from 6.49% to 6.39%. The fund's shareholding decreased from 51,47,763 shares to 50,72,763 shares.

Company Information

Cyient DLM Limited's shares are listed on both the National Stock Exchange of India Limited and BSE Limited. The company's total equity share capital remains unchanged at Rs. 79,36,43,960, consisting of 7,93,64,396 shares with a face value of Rs. 10 per share.

Regulatory Compliance

The disclosure was made pursuant to Regulation 29(2) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. Nippon India Mutual Fund confirmed that it does not belong to the promoter or promoter group of Cyient DLM Limited. The fund operates through Nippon Life India Trustee Limited and is managed by Nippon Life India Asset Management Limited.

The transaction represents a routine portfolio adjustment by the mutual fund, with the shareholding remaining above the 5% threshold that requires regulatory disclosure under SEBI regulations.