Cyient Semiconductors to Raise ₹300 Cr via Hybrid Debt-Equity Instruments

$CYIENT has announced a strategic financing plan for its wholly-owned subsidiary, Cyient Semiconductors, to raise ₹300 crore through a mix of debt and equity-linked instruments. The Board approved the definitive term sheet on May 25, 2026. Transaction Structure: Debt -₹200 Cr Non-Convertible Debentures (NCDs) Equity-linked -₹100 Cr Compulsorily Convertible Debentures/Preference Shares (CCD/CCPS) Key Terms: Investor: EAAA India Alternatives Limited and associated entities Collateral: Cyient to provide corporate guarantee + 100% pledge of its shareholding in Cyient Semiconductors Governance: Arm's-length transaction; no promoter-group interest Strategic Rationale: Growth Capital: Funds to support Cyient Semiconductors' expansion in semiconductor design, testing, and advanced packaging — aligning with India's Semicon India mission. Capital Efficiency: Hybrid structure balances immediate liquidity (NCDs) with long-term equity alignment (convertibles), optimizing the subsidiary's capital structure. Parent Support: Cyient's guarantee and share pledge enhance investor confidence while retaining full ownership control. Outlook: The infusion positions Cyient Semiconductors to scale capabilities in a high-growth, strategically critical sector. Successful execution could attract follow-on institutional interest and strengthen Cyient's positioning in the global semiconductor value chain.