Announcement • Jun 05
Sigma Advanced Systems Limited announced that it expects to receive INR 4.59999509 billion in funding Sigma Advanced Systems Limited announced a private placement to issue 13,256,470 shares at an issue price of INR 347 per share for gross proceeds of INR 4,599,995,090 on June 4, 2026. The transaction will include participation from Bank of India Flexi Cap Fund for 734,870 shares, Bank of India Small Cap Fund for 680,115 shares, Bank of India Mid Cap Tax Fund Series for 17,291 shares and other investors. The transaction has been approved by shareholders and is subject to general shareholders to be held on June 28, 2026. New Risk • May 26
New major risk - Financial position The company's debt is not well covered by operating cash flow. Currently running at an operating cash loss. This is considered a major risk. If the company's operating cash flows are too small relative to the size of their debt, it increases their balance sheet risk. The company has less cash from operations to cover its expenses from servicing large debt and it increases the risk of liquidity issues. It also extends the time it would take for the company to pay back the debt in full, meaning it may not be able to easily pay it all off in a distress scenario. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (currently running at an operating cash loss). High level of non-cash earnings (111% accrual ratio). Shareholders have been substantially diluted in the past year (139% increase in shares outstanding). Valuation Update With 7 Day Price Move • May 25
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to ₹367, the stock trades at a trailing P/E ratio of 48.9x. Average trailing P/E is 25x in the Software industry in India. Total returns to shareholders of 950% over the past three years.