Image Source: Equity Bulls
CG-VAK Software and Exports Ltd has approved a strategic investment of Rs 44 million in the Aequitas Global Value Fund, signaling a shift toward diversified capital allocation and long-term wealth creation. The decision, finalized during the company’s board meeting in August 2025, reflects CG-VAK’s intent to leverage high-performing alternative investment vehicles amid evolving market dynamics and surplus liquidity from operational gains.
Key Highlights From The Investment Decision
- Investment amount: Rs 44 million sanctioned for deployment into Aequitas Global Value Fund
- Fund profile: Aequitas specializes in global listed equities with a value-oriented approach and a 10-year CAGR of 26 percent in PMS strategies
- Objective: To enhance returns on surplus cash reserves through exposure to international equity markets
- Governance: The investment was approved in compliance with SEBI’s Listing Obligations and Disclosure Requirements
Strategic Rationale And Portfolio Diversification
- CG-VAK’s investment in Aequitas marks its first major allocation into an offshore equity-focused alternative investment fund
- The move is aimed at diversifying the company’s treasury portfolio beyond domestic fixed income and short-term instruments
- Aequitas Global Value Fund targets undervalued global equities, offering exposure to sectors and geographies not covered by Indian indices
- The fund’s performance track record and disciplined value investing philosophy align with CG-VAK’s conservative capital deployment strategy
Fund Profile And Market Position
- Aequitas is a boutique investment firm headquartered in Mumbai, with offices in GIFT City and Dubai
- The Global Value Fund is structured to capitalize on mispriced opportunities in developed and emerging markets
- The fund’s client base includes ultra-high-net-worth individuals, family offices, and institutional investors
- With a net AUM of Rs 63 billion, Aequitas has consistently outperformed benchmark indices across market cycles
Financial Context And Liquidity Management
- CG-VAK reported strong quarterly earnings in FY2025, supported by robust offshore software development contracts and margin expansion
- The company’s cash reserves have grown steadily, prompting a review of capital allocation strategies to optimize returns
- The Rs 44 million investment represents a small but strategic portion of CG-VAK’s treasury assets, earmarked for long-term deployment
- The board emphasized that the investment will not impact operational liquidity or ongoing capex plans
Governance And Risk Controls
- The investment was approved after due diligence and risk assessment by CG-VAK’s finance and compliance teams
- The company will monitor fund performance through quarterly reviews and maintain flexibility to rebalance if required
- Aequitas is regulated under SEBI’s Alternative Investment Fund norms and operates with full transparency on portfolio holdings and valuation metrics
- CG-VAK has confirmed that the investment complies with its internal investment policy and shareholder interests
Industry Trends And Broader Implications
- Indian corporates are increasingly allocating surplus funds to alternative investment vehicles to hedge against inflation and currency volatility
- Global value funds offer a counter-cyclical investment strategy, especially as domestic valuations stretch beyond fundamentals
- CG-VAK’s move reflects a growing trend among mid-cap technology firms to explore capital markets for passive income and strategic diversification
- The investment also signals confidence in India’s evolving AIF ecosystem and its ability to deliver global-grade asset management
Conclusion
CG-VAK Software’s Rs 44 million investment in the Aequitas Global Value Fund marks a thoughtful step toward portfolio diversification and long-term capital appreciation. With a disciplined approach to risk and governance, the company is leveraging its financial strength to participate in global equity opportunities. As Aequitas continues to build its reputation for value-driven performance, CG-VAK’s strategic allocation could serve as a model for other mid-sized firms seeking smarter treasury management.
Sources: Aequitas India Newsroom, CG-VAK Investor Disclosures, Moneycontrol Financials.
Advertisement
Advertisement
