Sigma Advanced Systems Approves ₹460 Crore Preferential Issue and Raises Stake in Defence Subsidiary

Sigma Advanced Systems Limited (formerly known as Megasoft Limited) has announced major corporate restructuring decisions following a meeting of its Board of Directors on June 4, 2026. The company has approved a massive preferential equity allotment to raise nearly ₹460 crores from non-promoter investors. Concurrently, the board greenlit a share-swap transaction to acquire an additional 25% stake in its aerospace and defence subsidiary, AS Strategic Private Limited.

To obtain shareholder authorization for these capital actions, the company has scheduled an Extra-ordinary General Meeting (EGM) on June 28, 2026, which will be conducted virtually via video conferencing.

Massive Preferential Allotment to Non-Promoters

The board has authorized the issuance of up to 1,32,56,470 fully paid-up equity shares at an allotment price of ₹347 per share (incorporating a face value premium of ₹337 per share). The aggregate capital inflow from this preferential issue totals ₹459,99,95,090.

The allotment is structured entirely for non-promoter entities and public investors. Key highlights of the allocation include:

Institutional Backing: Multiple public investment funds are participating, including the Bank of India Flexi Cap Fund (734,870 shares), Bank of India Small Cap Fund (680,115 shares), and several mutual funds managed by Taurus, including their Flexi Cap, Mid Cap, Large Cap, and ELSS Tax Saver variants.

Significant Private Investors: Large blocks of 1,440,922 shares each are being allotted to Akshat Greentech Private Limited, Bhaskara Rao Bollineni, and Amritha Vellodi, with each holding representing an investment value of approximately ₹50 crores.

Advisors and Oversight: InCred Capital Wealth Portfolio Managers Private Limited and Spark PWM Private Limited (Spark Capital) served as financial advisors for the preferential transaction. Additionally, India Ratings and Research Private Limited has been officially designated as the monitoring agency to oversee the utilization of the incoming capital.

Prior to this capital raise, the cumulative holding of the incoming group of 35 allottees represented just 0.05% of the company's equity layout. Post-allotment, their combined allocation will account for 7.41% of Sigma Advanced Systems' expanded shareholding structure.

Share Swap to Expand Aerospace and Defence Footprint

In a strategic move to reinforce its core industrial capabilities, Sigma Advanced Systems is scaling up its ownership in its subsidiary, AS Strategic Private Limited. The target company operates out of Delhi within the high-barrier Aerospace and Defence sector, maintaining long-term partnerships and joint ventures with leading European and global original equipment manufacturers (OEMs). For the 12-month period ending March 2025, the subsidiary recorded a turnover of ₹608 lacs.

Sigma Advanced Systems currently commands a controlling 51% stake in the entity. The board has approved the acquisition of an additional 25% equity interest, which will elevate its total ownership in AS Strategic Private Limited to 76%.

This transaction will be executed entirely via a non-cash share swap valued at approximately ₹15 crores. Sigma Advanced Systems will issue 4,32,777 fresh equity shares (face value of ₹10 each) to the exiting minority owners of the subsidiary. Specifically, SA Insights Private Limited will receive 1,38,462 shares, and Adhiraj Khanna will be allotted 294,315 shares.

The company stated that the consolidation of this asset is aimed at creating an integrated, scalable platform to expand its defence operations on a global scale. The acquisition does not feature any promoter interest, does not constitute a related party transaction, and is expected to reach operational closure within the next six to eight weeks.

Shares of Sigma Advanced Systems Limited was last trading in BSE at Rs. 435.85 as compared to the previous close of Rs. 458.75. The total number of shares traded during the day was 85902 in over 1162 trades.

The stock hit an intraday high of Rs. 470.00 and intraday low of 435.85. The net turnover during the day was Rs. 38510605.00.

Source : Equity Bulls

Keywords

SigmaAdvancedSystems INE933B01012 FundRaising PreferentialIssue