Shivam Autotech Limited , a key player in the automobile parts segment, has released its financial results for the quarter ended September 30, 2023, alongside a significant fundraising initiative. The company's Board of Directors convened on November 12, 2023, to approve these measures and chart the course for future growth.

Financial Performance

For the quarter ended September 30, 2023, Shivam Autotech reported:

• A net loss of Rs 9.10 lakhs, an improvement from the previous quarter's loss of Rs 11.98 lakhs
• Revenue from operations stood at Rs 11,553.60 lakhs

Fundraising Initiative

In a strategic move to bolster its financial position, the Board has approved a proposal to raise funds through the issuance of Non-Convertible Debentures (NCDs):

• Total fundraising amount: Up to Rs 245 crore
• Method: Private placement
• Type: Secured, redeemable NCDs
• Implementation: To be issued in one or more tranches

This fundraising initiative is subject to necessary approvals, including shareholder consent.

Key Financial Considerations

The company's auditors have highlighted two significant items:

1. Deferred tax assets of Rs 1,989.25 lakhs
2. MAT credit entitlements of Rs 619.86 lakhs

It's noteworthy that deferred tax assets have only been recognized up to March 31, 2021, as a prudent financial measure.

Corporate Governance and Transparency

Shivam Autotech has demonstrated its commitment to corporate governance by disclosing detailed related party transactions for the period from April 1, 2023, to September 30, 2023. These transactions include:

• Sale and purchase of goods and services with related entities
• Loans and advances
• Remuneration to key management personnel

Looking Ahead

While the company continues to navigate challenges in the automobile parts segment, the approved NCD issuance signals a proactive approach to strengthening its financial foundation. The improved quarterly results, albeit still in loss, suggest potential stabilization efforts taking effect.

Investors and stakeholders will be keenly watching how Shivam Autotech utilizes the funds raised through NCDs and whether this infusion will translate into improved financial performance in the coming quarters.

As the automobile industry continues to evolve, Shivam Autotech's ability to innovate and adapt will be crucial in maintaining its position in the competitive auto parts market.

Shivam Autotech Limited , a key player in the automotive components sector, has announced an update to its upcoming board meeting agenda. The meeting, scheduled for November 12, 2025, will now include discussions on potential fund-raising initiatives, adding a new dimension to the previously planned financial review.

Expanded Board Meeting Agenda

The company's board of directors will convene to address the following key items:

1. Review of Unaudited Financial Results: The board will examine and discuss the unaudited financial results for the quarter and half-year ended September 30, 2025.

2. Fund Raising Proposal: A new addition to the agenda involves considering a proposal for raising funds through various borrowing mechanisms.

Potential Fund Raising Options

Shivam Autotech is exploring several avenues for fund raising, which include:

• Issuance of secured, unlisted, redeemable Non-Convertible Debentures (NCDs)
• Private placement of securities
• Preferential allotment
• Other modes of fund raising as deemed appropriate by the board

The final decision on the fund-raising method will be based on prevailing market conditions, applicable laws, and the company's specific funding requirements.

Regulatory Compliance

In adherence to regulations 29 and 33 of the Securities and Exchange Board of India (SEBI) Listing Obligations and Disclosure Requirements (LODR) Regulations, 2015, Shivam Autotech has duly informed the National Stock Exchange of India Limited and BSE Limited about this update to their board meeting agenda.

Market Impact

This announcement may impact investor sentiment towards Shivam Autotech Limited. The company's decision to explore fund-raising options, particularly through instruments like NCDs, could indicate plans for expansion, debt restructuring, or other strategic initiatives.

Investors and market analysts will likely be watching the outcomes of this board meeting, as it may provide insights into the company's financial health and future growth strategies.

As the automotive sector continues to evolve, companies like Shivam Autotech are positioning themselves to adapt and grow. The results of this board meeting may offer valuable information about the company's direction in the coming months.