Automobile Products of India Limited has received a penalty from BSE Limited for failing to maintain minimum public shareholding requirements during the October-December 2025 quarter. The company disclosed this development through a regulatory filing under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Fine Details and Compliance Issues

The stock exchange communicated the penalty through an email dated February 19, 2026, imposing a fine for the specific three-month period when the company failed to meet regulatory requirements.

The penalty specifically relates to non-compliance with minimum public shareholding requirements as mandated under Regulation 38 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Company Response and Remedial Action

In its disclosure dated February 24, 2026, the company acknowledged receipt of the penalty notice and provided assurance regarding compliance efforts. The management has indicated that corrective measures are being implemented to address the regulatory shortfall.

The company stated that it is currently in the process of complying with the minimum public shareholding requirements at the earliest possible time. This suggests active efforts are underway to rectify the compliance gap that led to the penalty.

Regulatory Framework

The fine falls under the broader regulatory framework governing listed companies in India. SEBI's listing regulations mandate specific minimum public shareholding thresholds that companies must maintain to ensure adequate market liquidity and investor participation. Non-compliance with these requirements can result in monetary penalties and other regulatory actions by stock exchanges.

Automobile Products of India Limited reported its unaudited financial results for the quarter ended December 31, 2025, showing continued operational challenges with significant losses. The company's Board of Directors also approved a rights issue of equity shares worth up to ₹14,00,000 during their meeting held on February 09, 2026.

Q3FY26 Financial Performance

The company's financial results for the quarter ended December 31, 2025, reflect ongoing operational difficulties with substantial losses across key metrics:

For the nine months ended December 31, 2025, the company reported a total income of ₹61.56 lakhs compared to ₹62.83 lakhs in the corresponding period of the previous year. The net loss for the nine-month period stood at ₹149.72 lakhs, significantly higher than ₹121.61 lakhs reported in the same period last year.

Rights Issue Details

The Board of Directors approved the issuance of equity shares through a rights issue to existing shareholders, designed primarily to ensure compliance with regulatory requirements:

Operational Challenges and Regulatory Issues

The company continues to face significant operational headwinds, with total expenses of ₹76.35 lakhs in Q3FY26 compared to ₹61.07 lakhs in Q3FY25. Finance costs remained elevated at ₹44.05 lakhs for the quarter, while BSE charges of ₹10.86 lakhs were imposed due to non-compliance with Minimum Public Shareholding requirements.

The company's equity share capital stands at ₹48.18 lakhs, while reserves have been completely eroded. The holding company has agreed to provide necessary financial support to maintain the company as a going concern, highlighting the challenging financial position.

Board Meeting and Compliance

The board meeting conducted on February 09, 2026, from 03:30 p.m. to 06:30 p.m. at the company's registered office in Mumbai, addressed both the quarterly financial results and the proposed rights issue. The decisions were made pursuant to Regulation 30 and 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, ensuring proper regulatory disclosure and transparency with stakeholders.