Cambridge Technology plans FA Software sale for Rs 1 lakh

Cambridge Technology Enterprises Limited plans to sell its entire 10,000-share holding in FA Software Services Private Limited for Rs 1 lakh, while the subsidiary contributed Rs 2.14919 lakh of revenue and negative Rs 2.1643351 crore of net worth in the last financial year disclosed. The share purchase agreement has not yet been executed.

What is Cambridge Technology selling?

Cambridge Technology is proposing to sell 10,000 equity shares in FA Software for Rs 1 lakh. The shares have a face value of Rs 10 each and are proposed to be sold at par, meaning that the stated consideration equals their aggregate face value. The disclosure identifies FA Software as a wholly owned subsidiary of Cambridge Technology.

The buyer is AKIT IT Consulting Private Limited, an Indian company incorporated under the Companies Act, 2013. Cambridge Technology said AKIT IT Consulting is not related to its promoter, promoter group or group companies, and that the proposed sale is not a related-party transaction. The filing also says the disposal is not a slump sale and is outside a scheme of arrangement.

The proposed consideration covers the 10,000 shares rather than a disclosed valuation of FA Software's business or assets. Cambridge Technology did not disclose an independent valuation, a valuation method, competing bids, or an expected accounting gain or loss on the proposed Rs 1 lakh disposal.

How much did FA Software contribute in the last financial year?

FA Software contributed Rs 2.14919 lakh of turnover or revenue in the last financial year, representing 0.12% of Cambridge Technology's revenue. Its disclosed net-worth contribution was negative Rs 2.1643351 crore, equal to negative 26.93% of Cambridge Technology's net worth.

The revenue contribution of 0.12% was small relative to the negative 26.93% net-worth contribution reported for the subsidiary. Cambridge Technology did not provide FA Software's stand-alone profit or loss, total assets, total liabilities, cash balance, or the financial year-end date used for the contribution data in Annexure III.

The proposed Rs 1 lakh consideration is separate from the disclosed negative net-worth contribution of Rs 2.1643351 crore. The filing does not state that net worth determined the Rs 1 lakh price, nor does it explain how the consideration for the 10,000 shares was negotiated.

When will Cambridge Technology complete the FA Software sale?

Cambridge Technology has not disclosed a completion date because the share purchase agreement, or SPA, has not yet been executed. It said the SPA execution date would be intimated when the transaction is finalised, and completion is expected within a period mutually agreed by the parties and subject to applicable regulatory requirements.

The filing marks Regulation 37A of the Securities and Exchange Board of India Listing Obligations and Disclosure Requirements Regulations as not applicable to the disposal. It also marks as not applicable the additional disclosures for a slump sale, consistent with the proposed transfer of 10,000 equity shares rather than a sale of an undertaking.

The disclosed milestones are therefore SPA execution and a mutually agreed completion period, not a fixed calendar deadline. Until those occur, Cambridge Technology has not stated when it will receive the Rs 1 lakh consideration or when FA Software will cease to be its wholly owned subsidiary.

Is the proposed share sale linked to the completed loan assignment?

No. Cambridge Technology separately completed an assignment of loan principal receivable from FA Software on November 12, 2026, while the proposed Rs 1 lakh share sale remained unsigned at the time of the disclosure. Both transactions involve FA Software, but they have different counterparties, consideration and legal mechanisms.

In the completed assignment, Cambridge Technology transferred Rs 15.222576 crore of outstanding principal receivable to Aglow Financial Services Private Limited for Rs 40 lakh. The right to receive interest accrued and payable on the assigned debt was excluded from the assignment and continues with Cambridge Technology.

Aglow Financial Services is not related to Cambridge Technology's promoter, promoter group or group companies, according to the November 12, 2026 disclosure. AKIT IT Consulting is the proposed buyer of the shares, and the filing does not state that AKIT IT Consulting and Aglow Financial Services are connected.

What do Cambridge Technology's latest consolidated figures show?

Cambridge Technology reported consolidated total assets of Rs 182.5171 crore at September 30, 2026, compared with Rs 184.9502 crore at March 31, 2026. The balance-sheet figures therefore show a decrease of Rs 2.4331 crore over the six-month period.

Trade receivables fell to Rs 7.0356 crore at September 30, 2026 from Rs 12.8255 crore at March 31, 2026. Cash and cash equivalents were Rs 36.59 lakh at September 30, 2026, compared with Rs 36.52 lakh six months earlier, while investments declined to Rs 53.29 lakh from Rs 1.1551 crore.

These are consolidated balance-sheet figures for Cambridge Technology rather than stand-alone financial statements for FA Software. Since the proposed 10,000-share sale had no executed SPA, the filing does not attribute the movement in total assets, receivables, cash or investments between March 31, 2026 and September 30, 2026 to the proposed Rs 1 lakh transaction.

Conclusion

Cambridge Technology's proposed Rs 1 lakh sale would transfer its 10,000 shares in FA Software to AKIT IT Consulting, subject to a future SPA and regulatory requirements. The disclosed financial contribution data show Rs 2.14919 lakh of revenue, or 0.12%, alongside negative net worth of Rs 2.1643351 crore, or negative 26.93%, in the last financial year.

The next disclosed events to watch are execution of the SPA, announcement of the mutually agreed completion period and confirmation of any applicable regulatory requirements. Cambridge Technology has already completed a separate Rs 15.222576 crore principal assignment involving FA Software on November 12, 2026 for Rs 40 lakh, while retaining the right to the excluded interest receivable.