Citigroup would pay $30 million for a 14 percent stake, which ICSA managing director Bala Reddy said would be made up of new shares and 284,000 convertible warrants.

Goldman would buy $22 million of foreign currency convertible bonds, a company statement said.

Citigroup would buy 1.1 million new shares at 950 rupees each, while Goldman could convert its debentures at 1,250 a share, Reddy said. ICSA shares fell 1.4 percent to 1,099.25 rupees in Mumbai market that rose 0.1 percent.

"We would use the funds for our research & development and to improve our infrastructure," Reddy said.

The Hyderabad-based firm, which has an order book of 10 billion rupees ($226.2 million), builds software using GSM technology to monitor transmission and distribution losses in the power and oil sectors.