Cyient has announced a strategic financing plan for its wholly owned subsidiary, Cyient Semiconductors. The subsidiary will raise ₹300 crore through a mix of non-convertible debentures and convertible instruments. Cyient will support this capital infusion by providing a corporate guarantee and a 100% pledge of its shareholding in the subsidiary in favour of the investor, EAAA India Alternatives Limited, to facilitate the company’s expansion and growth objectives.
Strategic Capital Infusion
On May 25, 2026, the board of directors approved a definitive term sheet for a significant fundraising initiative involving Cyient Semiconductors. This transaction aims to inject ₹300 crore into the subsidiary to bolster its financial standing and operational capabilities.
Breakdown of Investment
The investment, led by EAAA India Alternatives Limited and associated entities, is structured into two distinct components:
- ₹200 crore through the issuance of non-convertible debentures (NCDs).
- ₹100 crore via compulsorily convertible debentures or compulsorily convertible preference shares (CCD/CCPS).
Supporting the Transaction
To secure the financial obligations tied to this investment, Cyient has committed to providing a corporate guarantee. Furthermore, the parent company will provide a 100% share pledge of its stake in the subsidiary as collateral. The company has clarified that its promoters hold no interest in this transaction, confirming it is an arm’s length arrangement aimed at supporting the growth of its wholly owned subsidiary.
Source: BSE
