Spel Semiconductor Limited’s Board has approved a comprehensive plan to raise up to ₹1,000 crore through domestic and overseas channels to finance the modernization and expansion of its semiconductor manufacturing facilities. The fund-raising initiative aims to bolster investments in manufacturing infrastructure, advanced packaging, testing, automation, and utilities. This strategic expansion is intended to position the company to leverage various government incentive schemes, including the India Semiconductor Mission and Production Linked Incentive (PLI) Schemes.

The Board sanctioned raising funds of up to ₹500 crore via one or more Rights Issues or through a Qualified Institutional Placement (QIP) of equity shares and other eligible securities. Separately, the company approved raising another ₹500 crore through overseas instruments such as Foreign Direct Investment (FDI) and Foreign Currency Convertible Bonds (FCCBs), subject to applicable regulatory approvals.

To facilitate these capital infusion plans, the Board approved increasing the authorised share capital from ₹60 crore to ₹150 crore, subject to shareholder approval. This move necessitates an alteration of Clause V of the Memorandum of Association. Furthermore, the Board resolved to seek shareholder approval under Section 180(1)(c) of the Companies Act, 2013 to enhance the company's borrowing limits up to ₹500 crore.

A Fund Raising Committee comprising directors and key managerial personnel was constituted to oversee the implementation of these initiatives. The committee is authorized to appoint intermediaries and complete necessary regulatory formalities. The Board meeting, held on July 20, 2026, at the company's registered office, commenced at 10:15 A.M. and concluded at 7:45 P.M.

Key Approvals

SPEL Semiconductor Limited has reported a net loss of ₹2,384.11 lakh for the fiscal year ended March 31, 2026. The company's board approved the audited financial results during a meeting held on May 19, 2026. The performance reflects operational challenges, including the suspension of factory operations and the breakdown of major plant and machinery during the fourth quarter.

Financial Performance

For the year ended March 31, 2026, the company recorded a total income of ₹853.07 lakh, compared to ₹951.90 lakh in the previous fiscal year. Revenue from operations declined to ₹628.00 lakh from ₹786.42 lakh in the prior year. Total expenditure for the period was reported at ₹13,548.88 lakh. Consequently, the company reported a basic and diluted earnings per share (EPS) of (₹5.17) for the year.

Auditor's Qualified Opinion

The statutory auditors, Venkatesh & Co., issued a qualified opinion on the standalone financial results. The qualification centers on material uncertainties that cast significant doubt on the company's ability to continue as a going concern. Key factors cited include the company's history of incurring losses and generating negative cash flows, significant reduction in employee strength due to resignations, and the breakdown of critical plant and machinery which halted production activities in the fourth quarter.

Additionally, the auditors noted that trade receivables amounting to ₹58.76 lakh and trade payables amounting to ₹326.98 lakh as of March 31, 2026, are subject to confirmation and reconciliation. The absence of independent balance confirmations prevented the auditors from determining the necessity of adjustments regarding these balances.

Operational and Management Updates

In response to the auditor's concerns, the management stated that it is taking active steps to dispose of 8.14 acres of surplus lease land to minimize liabilities. The company is also awaiting the release of India Semiconductor Mission 2.0 incentive guidelines for availing capital expenditure subsidies. Furthermore, SPEL Semiconductor is pursuing low-cost debt funding for business revamping and exploring potential customer collaborations for growth.

The board also approved the continuation of the suspension of factory operations, as previously decided in the meeting held on January 14, 2026. Additionally, the board approved the removal of the services of Mr. Thiruvenkatachari Parthasarathy as the Chief Financial Officer, effective from the close of business hours on May 19, 2026. The disclosure regarding the change was made pursuant to Regulation 30 of the SEBI (LODR) Regulations, 2015. The reason cited for the cessation was removal due to continuous absence from office.

Regulatory Disclosure

Pursuant to Regulation 47 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the company published newspaper advertisements pertaining to the audited financial results for the quarter and year ended March 31, 2026. The advertisements were published in Trinity Mirror and Makkal Kural on May 21, 2026. The information is also available on the company's website.