Shivam Autotech Limited's Board has approved the issuance of Secured, Unlisted, Redeemable, Non-Convertible Debentures (NCDs) worth up to ₹25 crores through private placement. The company will issue up to 250 debentures with a face value of ₹10 lakh each, offering a 12% annual interest rate. The NCDs will be secured by a first-ranking exclusive charge over specified receivables. The decision was made during a Board meeting on August 8, 2025, and has been communicated to the National Stock Exchange of India Ltd and BSE Limited in compliance with SEBI regulations.
22Jul 25
Shivam Autotech's Credit Outlook Revised to Negative Amid Financial Challenges
CARE Ratings reaffirmed Shivam Autotech Limited's credit ratings but revised the long-term outlook from Stable to Negative. The company reported a total operating income of ₹453.98 crore with a PBILDT margin of 9.78%, but posted net losses of ₹48.04 crore. The overall gearing worsened to 10.94x from 7.29x, with total debt at ₹344.55 crore. Challenges include underutilized manufacturing capacities, stretched liquidity, and revenue concentration risk with 40% from Hero MotoCorp. A GST show cause notice for ₹50.10 crore adds to concerns. Despite experienced promoters and strong operational linkages, the company's PBILDT is insufficient to cover interest expenses, leading to sustained losses and liquidity stress.