Cadsys (India) Limited informed the exchnage that there had been a change in the equity percentage of Cadsys (India) Limited in Apex Advanced Technology LLC, a material subsidiary of Cadsys (India) Limited, by virtue of purchase of additional equity units by FVLCRUM, Private Equity Fund for a consideration of Rs. ₹ 2,927.51 Lakhs ( USD $ 35,02,500 Million).
As a result of this transaction, FVLCRUM’s holding will increase from 36% to 48%.
Cadsys said that it would use these funds to repay long term loans and clear up its balance sheet.
NCV Rangacharya, Managing Director said that, as the Company was seeing tremendous growth in the business and expanding rapidly, the board felt that this dilution of stake would help conserve cash for future growth. In addition, high inflation has driven up borrowing costs in the US. The reduced interest burden would add to the bottom line.