CyberTech Systems Fully Utilises ₹40.28 Cr Preferential Allotment Funds in US Subsidiary
CyberTech Systems & Software Limited has fully utilised ₹40,27,72,500 raised through a preferential allotment dated December 04, 2023, by investing the entire amount as equity capital in its wholly-owned US subsidiary CSSI. The disclosure, made on May 07, 2026 under SEBI Regulation 30, confirms the investment aligns with shareholder-approved objects, with the Q1FY27 deviation statement under Regulation 32 set to reflect the utilisation.
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CyberTech Systems & Software Limited has disclosed the full utilisation of funds raised through a preferential allotment, with the entire proceeds of ₹40,27,72,500 (Rupees Forty Crores Twenty-Seven Lakhs Seventy-Two Thousand and Five Hundred only) invested as equity capital in its wholly-owned US subsidiary, CyberTech Systems & Software Inc., USA (CSSI). The disclosure was made to stock exchanges on May 07, 2026, pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The funds, originally raised through a preferential allotment dated December 04, 2023, have been utilised in accordance with the objects of the issue approved by shareholders via postal ballot dated November 27, 2023, including the corrigendum to the postal ballot notice dated November 06, 2023.
Investment and Fund Utilisation Details
The investment, completed on May 06, 2026, was executed via cash remittance through bank transfer and constitutes an equity capital contribution into CSSI. The transaction was first intimated to exchanges as part of the outcome of the Board Meeting dated July 24, 2025, and has now been confirmed as fully completed. The following table summarises the key parameters of the investment:
| Parameter: | Details |
|---|---|
| Name of Entity: | CyberTech Systems & Software Inc., USA (wholly-owned subsidiary) |
| Method of Investment: | Cash Remittance – Bank Transfer |
| Category of Investment: | Capital Contribution |
| Amount of Investment (INR): | ₹40,27,72,500 |
| Amount of Investment (USD): | US$ 4,344,900 |
| Date of Completion: | May 06, 2026 |
| Form of Investment: | Equity Capital |
| Shareholding Post-Investment: | 100% |
| Fund Source: | Preferential Allotment dated December 04, 2023 |
As per the disclosure, the statement of deviation pursuant to Regulation 32 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 for the quarter ended June 30, 2026 shall reflect the utilisation of the aforesaid funds.
About CyberTech Systems & Software Inc., USA
CSSI was incorporated on June 12, 2003, in the State of Delaware, USA, and operates in the Software Development Services industry. The entity specialises in Enterprise Cloud Transformation, delivering cloud-based SAP solutions and Esri ArcGIS Enterprise platforms and ArcGIS utility network services. The investment by the company is intended to facilitate the business operations of CSSI, which remains aligned with the parent company's core line of business.
CSSI's Financial Performance
CSSI has demonstrated consistent revenue growth over the past three audited financial years. The table below presents the turnover figures as disclosed:
| Period: | Turnover |
|---|---|
| April 2024 – March 2025: | USD 22.40 million |
| April 2023 – March 2024: | USD 21.11 million |
| April 2022 – March 2023: | USD 19.37 million |
Note: Audited financial results for the year ending March 31, 2026 are not yet approved by the Board of Directors; hence, figures of the last audited financials are being stated.
Related Party and Regulatory Disclosures
As a wholly-owned subsidiary, CSSI is classified as a related party of CyberTech Systems & Software Limited. The investment is in the nature of a related party transaction and has been undertaken on an arm's length basis. Mr. Viswanath Tadimety and Mr. Steven Jeske serve as common Non-Independent Directors in both the company and CSSI. No other promoter, promoter group, or group company has any interest in the investment. No governmental or regulatory approvals were required for the completion of this transaction.
Historical Stock Returns for Cybertech Systems & Software
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +13.78% | +13.51% | +9.61% | -13.58% | -3.88% | -7.09% |
How will the $4.34 million equity infusion into CSSI accelerate its Enterprise Cloud Transformation pipeline, and could it enable CSSI to cross the $25 million revenue threshold in FY2026?
Given CSSI's consistent ~8% annual revenue growth, will CyberTech consider additional preferential allotments or alternative fundraising mechanisms to further capitalize its US operations?
How might the strengthening or weakening of the INR/USD exchange rate impact the effective returns on CyberTech's equity investment in CSSI going forward?
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