California Software Company Limited (CALSOFT) has announced plans to raise substantial funds through a combination of Qualified Institutional Placement (QIP) and Foreign Currency Convertible Bonds (FCCBs). The company has dispatched postal ballot notices to shareholders seeking approval for these significant fundraising initiatives.

Proposed Fundraising Details

• QIP: Up to Rs 200 crores
• FCCBs: Up to USD 100 million
• Authorized Share Capital Increase: From Rs 175 crores to Rs 225 crores

Key Points

Postal Ballot Process

• E-voting period: November 19 to December 18, 2025
• Cut-off date for eligible voters: November 14, 2025

Intended Use of Funds

• Business expansion
• Customer acquisition
• Working capital requirements
• Strategic growth opportunities

Authorized Capital Increase

• Current: Rs 175 crores (17.10 crore equity shares and 40 lakh preference shares of Rs 10 each)
• Proposed: Rs 225 crores (22.10 crore equity shares and 40 lakh redeemable preference shares of Rs 10 each)

Additional Resolutions

• Approval to make investments, give loans, guarantees, and security in excess of limits specified under Section 186 of the Companies Act, 2013
• Re-appointment of Mr. R. S. Chandan as an Independent Director for a second term of 5 years

Management Commentary

Dr. Vasudevan Mahalingam, Managing Director of California Software, stated, "These fundraising initiatives are designed to strengthen the Company's stability and growth, ultimately delivering maximum value to our stakeholders."

Shareholder Action Required

Shareholders are urged to participate in the e-voting process, which concludes on December 18, 2025. The results of the postal ballot will be declared on or before December 20, 2025.

California Software's move to raise substantial funds through diverse instruments reflects the company's ambitious growth plans and its intent to capitalize on emerging opportunities in the software sector. Shareholders will play a crucial role in determining the success of these proposed fundraising efforts.

California Software Company Limited (CALSOFT) has announced a crucial board meeting scheduled for November 14, 2025, to discuss and approve several significant agenda items that could shape the company's future growth trajectory.

Financial Results and Capital Raising Initiatives

The board will consider and approve the unaudited financial results for the quarter and half-year ended September 30, 2025. Alongside this routine financial review, the company has outlined ambitious capital raising plans:

These capital raising initiatives, if approved, could significantly bolster California Software's financial position and provide resources for future growth.

Authorized Share Capital Increase

In line with its capital raising plans, California Software is considering an increase in its authorized share capital to ₹225.00 crores. This move would require amendments to Clause V of the company's Memorandum of Association and is subject to shareholders' approval.

Strategic Expansion Plans

The board meeting agenda also includes evaluating potential acquisitions of both Indian and foreign companies. This strategic move aims to expand California Software's business operations, potentially entering new markets or strengthening its existing portfolio.

Trading Window Closure

As per regulatory requirements, California Software has implemented a trading window closure from October 1, 2025, to November 16, 2025. This closure applies to promoters, directors, key management personnel, and specified employees, ensuring compliance with insider trading regulations.

Implications for Investors

The upcoming board meeting signals California Software's intent to pursue aggressive growth strategies. The proposed capital raising initiatives, if successful, could provide the company with substantial funds for expansion and acquisitions. However, investors should note that these plans are subject to board approval and, in some cases, shareholder consent.

As the company considers these significant moves, stakeholders will be keenly watching for the outcomes of the November 14 meeting and any subsequent announcements regarding the implementation of these initiatives.