Shivam Autotech’s Funding Drive: Board Clears ₹1.05 Billion NCD Issue

Inside the announcement  
The Gurugram-based auto ancillary company, listed on NSE and BSE, confirmed that its board has cleared the NCD issuance to raise long-term funds. Shivam Autotech, which manufactures precision-engineered components for two-wheelers and four-wheelers, has been under financial stress with debt exceeding ₹330 crore. The NCD plan is expected to provide stability by refinancing existing obligations and ensuring smoother cash flow management.  

Notable updates  
• Board approves issuance of NCDs worth up to ₹1.05 billion  
• Funds to be used for debt refinancing and operational liquidity  
• Company reported revenue of ₹473 crore in FY23 with net worth of ₹104 crore  
• Debt stands at over ₹330 crore, highlighting need for restructuring  
• Market capitalization currently around ₹379 crore, with shares trading near ₹30 levels  

Major takeaway  
The NCD issuance reflects Shivam Autotech’s strategy to stabilize finances and sustain operations in a competitive auto components market. By leveraging debt instruments, the company aims to balance liquidity needs with long-term growth, signaling cautious optimism for investors.  

Sources: Financial Express, The Company Check, Ticker Finology