Cyient's promoter group has confirmed that it has not created any encumbrance on the company's shares as of March 31, 2026, other than those already disclosed to the stock exchanges. This declaration was submitted in compliance with Regulation 31(4) of the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.

The confirmation was provided by Krishna Bodanapu on behalf of the promoter and promoter group. The disclosure ensures transparency regarding the holding status of the promoters for the financial year ended March 31, 2026.

The following table details the filing information:

Ravi Kumar Nukala, Dy. Company Secretary of Cyient , submitted the compliance letter to the exchanges. The declaration explicitly states that no direct or indirect encumbrance has been made on the shares by the promoters during the specified period.

Cyient Limited has announced that its subsidiary, Cyient Semiconductors, has secured its first external funding round of ₹300 crore from EAAA Alternatives at an equity valuation of ₹4,650 crore. The transaction, approved by the board on May 25, 2026, comprises Non-Convertible Debentures (NCDs) worth ₹200 crore and Compulsorily Convertible Debentures or CCPS (CCD/CCPS) worth ₹100 crore. The capital will be deployed towards R&D, lab infrastructure, and working capital to accelerate the subsidiary's growth roadmap in the power semiconductor and AI data center markets.

Transaction Structure and Rationale

The fundraising is designed to provide Cyient Semiconductors with an independent capital structure and operational flexibility. Cyient Limited will provide security for the NCDs through a corporate guarantee and a pledge of 100% of its shareholding in the subsidiary. CFO Ramya Mohan explained that debt was chosen over equity at this stage to protect against dilution and preserve shareholder value, while offering the flexibility of a combined debt-and-equity structure. The recent acquisition of Kinetic Technologies, completed in March 2026 for approximately USD 85 million, was funded through debt raised at the Singapore entity.

Business Overview and Strategic Milestones

CEO Suman Narayan outlined that Cyient Semiconductors operates across three complementary segments: semiconductor design services, custom ASIC turnkey solutions, and power application-specific standard products (ASSPs). Power ASSPs, including Kinetic, currently account for roughly 50% to 60% of the business. Management indicated that the ASSP revenue share is expected to increase over the next three to four years as internally developed products commercialise. ASSPs are projected to deliver the highest gross margins, typically in the 50% to 60% range.

Strategic milestones include partnerships with GlobalFoundries, Navitas, MIPS, and Anora; the launch of 7 new GaN products targeting the Indian market; selection as the L1 bidder on the SCL Semiconductor Modernization Initiative; and an ASIC pipeline of approximately USD 100 million. The company also filed 4 patents focused on high-voltage DC architecture and advanced delivery systems for AI data centers.

Valuation and Profitability Outlook

Management addressed the USD 500 million valuation using three frameworks: trading comparables with global semiconductor companies (5x to 15x revenue), recent M&A transactions (upwards of 10x revenue), and the only listed semiconductor services company in India (trading at upwards of 7x revenue). Ramya Mohan noted the valuation works out to approximately 6x to 7x revenue. Cyient Limited reaffirmed its commitment to invest up to USD 100 million in Cyient Semiconductors, with approximately USD 30 million already deployed. Total debt on the semiconductor balance sheet, including the USD 80 million foreign currency debt for the Kinetic acquisition and the USD 20 million India debt from the current transaction, amounts to approximately USD 100 million. The company is still targeting EBIT breakeven in late FY27 to early FY28.