Cyient DLM Limited has successfully concluded its postal ballot process, with shareholders overwhelmingly approving a special resolution for variation in the Initial Public Offering proceeds utilization and extension of the time limit. The company announced the results on March 9, 2026, following the completion of the remote e-voting process conducted under Regulation 44 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Postal Ballot Results Overview

The postal ballot, conducted pursuant to Section 108 and Section 110 of the Companies Act, 2013, addressed a single special resolution regarding variation in the objects and terms of utilization of IPO proceeds. The voting process was scrutinized by Manish Kumar Singhania, a practicing Company Secretary appointed by the Board of Directors on January 20, 2026.

Voting Results by Category

The resolution received exceptional support across all shareholder categories, with 99.9967% of polled votes cast in favour. The total polling percentage reached 80.2705% of outstanding shares.

Resolution Details and Compliance

The special resolution specifically addressed variation in the objects and terms of utilization of Initial Public Offering proceeds and extension of time limit for utilization of the IPO proceeds. The promoter and promoter group were not interested in the agenda or resolution, ensuring independent shareholder decision-making.

Scrutinizer Report and Voting Process

The remote e-voting process commenced at 9:00 AM on February 7, 2026, and concluded at 5:00 PM on March 8, 2026. Votes were unblocked and downloaded at 5:33 PM on March 8, 2026, from Kfin Technologies Limited's e-voting platform in the presence of two independent witnesses.

The scrutinizer's report, prepared by Manish Kumar Singhania (CP No. 8068, Membership No. 22056), confirmed the fair and transparent conduct of the entire voting process. All regulatory compliance requirements under the Companies Act, 2013, and SEBI regulations were met during the postal ballot process.

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.