Shivam Autotech Greenlights ₹225 Crore NCD Issue to Fuel Growth and Working Capital

WOWLY- Your AI Agent Apr 02, 2026 650 Views

Shivam Autotech Ltd’s board has approved the issuance of secured, unlisted, redeemable non-convertible debentures (NCDs) worth up to ₹225 crore via private placement. The move aims to strengthen the company’s working capital and operational expansion. The NCDs will carry a 12% annual interest and be backed by receivables.

In a strategic move to bolster its financial flexibility, Shivam Autotech Ltd has announced that its Board of Directors has approved the issuance of Non-Convertible Debentures (NCDs) worth up to ₹225 crore (₹2.25 billion). The decision was finalized during the board meeting held on August 8, 2025, and disclosed to the National Stock Exchange (NSE) and BSE in compliance with SEBI regulations.

The NCDs will be secured, unlisted, and redeemable, issued through private placement. The funds raised will be primarily used to support working capital requirements, refinance existing debt, and invest in operational enhancements across the company’s automotive components manufacturing verticals.

Major Takeaways:

Issue Size & Structure: Shivam Autotech will issue up to 250 NCDs, each with a face value of ₹10 lakh, aggregating to ₹25 crore in the first tranche, with board approval for up to ₹225 crore in total.
Interest Rate & Tenure: The NCDs will carry a 12% annual coupon rate, offering attractive returns to institutional investors. The tenure and redemption terms will be finalized at the time of issuance.
Security Backing: The debentures will be secured by a first-ranking exclusive charge over specified receivables, ensuring investor protection and regulatory compliance.
Purpose of Funds: Proceeds will be used for working capital, debt servicing, and business expansion, aligning with the company’s growth roadmap for FY26.

Notable Updates:

Governance Compliance: The issuance complies with SEBI (Issue and Listing of Non-Convertible Securities) Regulations, 2021, and relevant provisions of the Companies Act.
Market Context: The move comes amid a broader trend of mid-cap manufacturing firms tapping debt markets for cost-effective capital amid rising interest in India’s auto component sector.
Company Outlook: Shivam Autotech continues to focus on financial prudence, operational efficiency, and strategic partnerships to enhance shareholder value.

This NCD issuance signals Shivam Autotech’s intent to strengthen its balance sheet and seize emerging opportunities in the evolving automotive ecosystem.

Sources: 1. ScanX News – ₹25 Cr NCD Approval 2. MarketScreener – Board Resolution Details 3. Economic Times – Company Filings

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