Shivam Autotech Board Approves Rs 2,105 Crore NCD Fundraising Plan

Shivam Autotech Limited , a prominent player in the automotive components sector, has announced a significant move to bolster its financial position. The company's Board of Directors has given the green light to a proposal for raising funds up to Rs 2,105 crore through the issuance of Non-Convertible Debentures (NCDs).

Key Details of the Fundraising Plan

Aspect	Details
Instrument Type	Secured, Redeemable Non-Convertible Debentures (NCDs)
Issuance Method	Private Placement
Maximum Amount	Up to Rs 2,105 crore
Issuance Structure	One or more tranches
Approval Status	Subject to necessary approvals, including shareholders' consent

Board Decision

The Board of Directors of Shivam Autotech Limited has approved a proposal to raise funds through the issuance of secured, redeemable Non-Convertible Debentures (NCDs). The fundraising plan allows for the issuance of NCDs up to Rs 2,105 crore via private placement, which may be executed in one or more tranches.

Regulatory Compliance and Conditions

The fundraising initiative is subject to several conditions:

Receipt of necessary approvals
Obtaining required consents and sanctions
Compliance with applicable laws and regulations
Securing shareholders' approval

Implications and Outlook

This move by Shivam Autotech Limited suggests a strategic approach to capital raising. By opting for NCDs through private placement, the company is likely aiming for a more streamlined fundraising process. The secured nature of the debentures may also indicate the company's commitment to offering a level of assurance to potential investors.

As the automotive sector continues to evolve, particularly with the push towards electric vehicles and advanced technologies, such substantial fundraising efforts could be crucial for companies like Shivam Autotech to invest in research, development, and capacity expansion.

The significant fundraising amount of Rs 2,105 crore indicates an ambitious financial strategy, potentially aimed at larger-scale investments or expansions in the future.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+4.30%	+4.87%	-0.65%	-5.68%	-30.77%	+45.29%

Shivam Autotech Limited , a prominent player in the automobile parts sector, has announced its financial results for the first quarter and made several key board-level decisions. The company's Board of Directors approved these measures during a meeting held on August 14.

Financial Performance

For the quarter ended June 30, Shivam Autotech reported a net loss of Rs. 1,765.61 lakhs, compared to a loss of Rs. 1,475.69 lakhs in the same quarter of the previous year. This represents an increase in losses by approximately 19.6% year-over-year. The company's revenue from operations stood at Rs. 9,114.49 lakhs for the quarter.

Key Financial Highlights

Particulars (Rs. in Lakhs)	Q1 Current	Q1 Previous	% Change
Revenue from Operations	9,114.49	10,807.15	-15.66%
Total Expenses	10,749.75	12,317.90	-12.73%
Net Loss	1,765.61	1,475.69	+19.65%

The company's total expenses for Q1 were Rs. 10,749.75 lakhs, showing a decrease of 12.73% compared to Rs. 12,317.90 lakhs in the same quarter of the previous year.

Annual General Meeting and Board Decisions

The Board has scheduled the 20th Annual General Meeting (AGM) for September 22, to be conducted through video conferencing. Several important board-level decisions were also made, subject to shareholder approval at the upcoming AGM:

Re-appointment of Executive Directors:
- Ms. Charu Munjal has been proposed for re-appointment as Executive Director.
- Mr. Neeraj Munjal has been recommended for re-appointment as Managing Director for an additional five-year term, from April 1, 2026, to March 31, 2031.
Continuation of Independent Director:
- The Board has recommended the continuation of Mr. Anil Kumar Gupta as a Non-Executive Independent Director beyond the age of 75 years.
Appointment of Secretarial Auditors:
- M/s. Yogesh K & Associates, Practicing Company Secretaries, have been proposed for appointment as Secretarial Auditors for a period of five consecutive financial years.

Management Commentary

Neeraj Munjal, Managing Director of Shivam Autotech, brings 26 years of rich experience in the auto-component sector. He has been instrumental in conceptualizing near net shape forging technology within the company and has led its expansion to four units across different locations in India.

Looking Ahead

As Shivam Autotech navigates through challenging market conditions, the proposed board reappointments and continuation of experienced leadership suggest a focus on stability and long-term strategic planning.

The financial results and board decisions will be presented for shareholder approval at the upcoming Annual General Meeting on September 22.