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The announcement about Sigma Solve Limited (SSL) increasing its stake in Sigma Solve Inc. to 100% through a buyback of securities, without any cash outflow from SSL, can be explained through a financial maneuver often used in corporate restructuring. Here’s how it works:

1. Buyback of Securities by Sigma Solve Inc.: Sigma Solve Inc. initiated a buyback of its own securities. This means the company repurchased its shares from shareholders other than SSL.
2. SSL’s Non-participation in the Buyback: SSL, which held a 59.81% stake in Sigma Solve Inc., chose not to participate in the buyback. This decision meant that SSL did not sell any of its shares back to Sigma Solve Inc.
3. Reduction in Total Outstanding Shares: As Sigma Solve Inc. bought back shares from other shareholders, the total number of outstanding shares in the company reduced. Since buybacks typically involve the company repurchasing its shares and then retiring them, the overall share count decreases.
4. Proportional Increase in SSL’s Ownership: Although SSL did not actively purchase additional shares, its proportion of ownership in Sigma Solve Inc. increased automatically due to the reduction in the total number of shares. When other shareholders sold their shares back and those shares were retired, SSL’s 59.81% stake became a larger portion of the now-reduced total share count.
5. 100% Ownership Achieved: The buyback was substantial enough that all shares not owned by SSL were repurchased by Sigma Solve Inc. As a result, the only remaining shares were those owned by SSL, effectively making Sigma Solve Inc. a wholly-owned subsidiary of SSL.
6. No Cash Outflow from SSL: SSL did not spend any money to increase its stake; the change in ownership percentage was a result of the buyback mechanics and the consequent reduction in total share count. SSL’s stake increased purely because the number of shares it owned became 100% of the company after the buyback.

In summary, SSL’s ownership of Sigma Solve Inc. increased to 100% without SSL spending any money because its existing shares became the entirety of the company’s shares after the buyback and retirement of the other shares. This is a strategic way to consolidate ownership without direct financial expenditure by the parent company.