Shivam Autotech Limited , a key player in the auto components sector, has successfully raised ₹45 crore through the private placement of Non-Convertible Debentures (NCDs). This move comes as the company seeks to strengthen its financial position amidst challenging market conditions.

Key Details of the NCD Issuance

The company's decision to issue NCDs comes at a time when its balance sheet reflects some financial pressures. As of the most recent reporting period, Shivam Autotech's total assets stood at ₹515.80 crore, showing a decline of 8.66% from the previous year.

Financial Position Overview

The issuance of NCDs appears to be a strategic move to address the company's financial structure. With current liabilities (₹347.10 crore) significantly outweighing current assets (₹158.50 crore), the additional funds could help in managing short-term obligations and potentially investing in growth opportunities.

It's worth noting that while the company's total equity has seen a substantial decline of 43.35% year-on-year, reaching ₹31.50 crore, the share capital has increased by 7.79% to ₹26.30 crore over the same period. This suggests that the company has been actively managing its capital structure in response to financial challenges.

The decision to opt for NCDs with a 14% interest rate and an extended tenure of up to 36 months, including an 18-month moratorium, indicates a careful approach to debt management. This structure could provide Shivam Autotech with some breathing room to implement strategic initiatives and potentially improve its financial position before the repayment period begins.

As the auto components sector continues to navigate through various market challenges, Shivam Autotech's move to secure additional funding through NCDs may be seen as a proactive step towards maintaining operational flexibility and pursuing growth opportunities in the coming years.

Shivam Autotech Limited , an auto component manufacturer, has announced a move to bolster its financial position. The company has issued a postal ballot notice seeking shareholder approval for raising up to ₹120 crores through the issuance of optionally convertible debentures (OCDs) to Alpha Alternative Structured Credit Opportunities Fund on a preferential basis.

Key Details of the Fundraising

Special Rights and Approvals

The company is also seeking approval for granting special rights to the investor, including:

• Board nomination rights
• Amendments to articles of association

These rights are subject to shareholder approval under SEBI's Listing Obligations and Disclosure Requirements (LODR) Regulations.

Voting Schedule

The voting for the postal ballot is scheduled from December 2-31, 2025.

Financial Context

The fundraising decision comes against a backdrop of financial challenges for Shivam Autotech. An analysis of the company's balance sheet reveals:

The balance sheet data indicates a decline in the company's financial position over the past year, with decreases in total assets and shareholders' capital, alongside an increase in current liabilities.

Implications

This fundraising initiative appears to be a strategic move by Shivam Autotech to address its financial challenges and potentially improve its capital structure. The option to convert the debentures into equity shares provides flexibility for both the company and the investor.

The success of this fundraising and its impact on Shivam Autotech's financial health will be closely watched by investors and industry observers.