Shivam Autotech Limited is undertaking a significant ₹12,000 lakh rights issue of equity shares at ₹12 per share (including ₹10 premium) to address its financial challenges. The issue offers 19 shares for every 25 shares held as of October 15, 2026 record date, with subscription open from October 22 to November 19, 2026.
Financial Context: The company reported a net loss of ₹8,133 lakhs in FY26 and negative net worth of ₹4,068 lakhs as of March 31, 2026, with current liabilities exceeding current assets by ₹5,060 lakhs. The rights issue proceeds will be used for debt repayment (₹7,500 lakhs adjustment of promoter unsecured loans), working capital requirements (₹3,200 lakhs), and general corporate purposes.
Procedural Details: The allotment follows a six-tier priority basis, with minimum 90% subscription requirement per SEBI ICDR Regulations. Shares will be allotted only in dematerialized form, with comprehensive refund mechanisms including ASBA unblocking, NACH, NEFT, RTGS and physical cheques. Delay in refund requires 15% per annum interest payment.
Regulatory Compliance: The issue complies with SEBI ICDR Regulations, Companies Act 2013, and has received in-principle approval from BSE and NSE. The company has appointed MCS Share Transfer Agent as registrar, ICICI Bank as banker, and Care Ratings as monitoring agency. Foreign investment is permitted under 100% automatic route, except for investors from countries sharing land borders with India.
Risk Factors: The document discloses 72 risk factors including dependence on key customers (top 10 contribute 88% of revenue), negative net worth, working capital constraints, outstanding litigation, and SEBI compliance issues. The promoter holding pre-issue is 69.52% through Dayanand Munjal Investments, expected to remain compliant with minimum public shareholding requirements post-issue.