Craftsman Automation clears ₹2,000 crore raise in 2026

Shareholders approve a wider capital-raising mandate

Craftsman Automation Ltd shareholders have approved a special resolution authorising the company to raise up to ₹2,000 crore through various permissible instruments. The approval came at an Extraordinary General Meeting (EGM) held on June 13, 2026. The resolution gives the company a standing mandate, rather than announcing an immediate issuance. For investors, the key point is that the approval creates flexibility for future funding and does not, by itself, mean immediate dilution. The actual timing, structure, and size of any issuance will be decided later by the board.

What the EGM resolution allows the company to do

The special resolution permits Craftsman Automation to raise funds in one or more tranches, with the aggregate amount capped at ₹2,000 crore. The company has indicated it may use multiple routes depending on market conditions and strategic requirements. Fundraising avenues mentioned include further public offer, preferential allotment, rights issue, Qualified Institutions Placement (QIP), private placement, American Depository Receipts (ADRs), Global Depository Receipts (GDRs), and debt instruments. Any issuance will need to follow the Companies Act, 2013, SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, and other applicable laws. The company has also noted that necessary regulatory approvals would be required wherever relevant.

How the decision was set in motion

Before the shareholder vote, the board of Craftsman Automation considered and approved the fund-raising proposal at its meeting held on May 16, 2026. The EGM notice was published in newspapers on May 20, 2026. The meeting itself was conducted through Video Conference (VC) or Other Audio-Visual Means (OAVM) and commenced at 11.00 A.M. IST on Saturday, June 13, 2026. Shareholders were provided remote e-voting and were also allowed to vote during the EGM if they had not used the remote facility.

Intended use of proceeds: capex, working capital, and debt

Craftsman Automation has stated that the proceeds are intended for a mix of operational and balance-sheet needs. Uses include capital expenditure towards capacity expansion, funding incremental working capital requirements, and repayment or pre-payment of existing borrowings. The company has also stated that funds may be used for investments in subsidiaries and joint ventures, in addition to general corporate purposes. The final allocation would be decided by the board at the time of issuance, based on business needs and regulatory requirements.

Key dates investors tracked for the EGM

Eligibility and voting timelines were set ahead of the June 13 meeting. The cut-off date for determining voting eligibility was Saturday, June 6, 2026. Remote e-voting opened on Wednesday, June 10, 2026 at 9.00 A.M. IST and closed on Friday, June 12, 2026 at 5.00 P.M. IST. The notice and related disclosures were made available through the company’s channels, including the company website.

QIP and pricing mechanics referenced in disclosures

If the company chooses to raise funds via a QIP, the process must be completed within 365 days of the special resolution being passed. The issue price for any new securities would be linked to the QIP floor price, and the company has noted a maximum discount of 5% on the floor price calculated for the issue. These are structural guardrails relevant to institutional placements, but they do not confirm that a QIP will be the selected route. The company’s stated approach is to keep options open and execute based on market conditions and strategic needs.

Debt context: reducing borrowings is one stated objective

One of the stated objectives for the proposed fund raise is repayment or pre-payment of existing borrowings. The article context also notes an estimated ₹5,500 crore in outstanding borrowings, with the fund raise intended to strengthen the financial position and potentially lower interest expenses. While the shareholder resolution enables fundraising up to ₹2,000 crore, the company has not committed in this disclosure to a specific issuance date or a final capital structure. Investors typically watch for subsequent board decisions that detail instrument type, tranche size, and end-use allocation.

FY26 financial snapshot cited alongside the proposal

The fund-raising mandate comes after Craftsman Automation reported what it called its highest-ever consolidated revenue for FY26. For the full financial year ended March 31, 2026, the company reported revenue from operations of ₹8,069 crore, consolidated EBITDA of ₹1,300 crore (up 51% year-on-year), and PAT of ₹384 crore (up 91% year-on-year). These figures provide context for why the company may want flexibility for expansion and balance-sheet management. However, the approval itself is a governance step rather than a completed capital raise.

Reference point: the company’s earlier QIP in June 2024

The company’s earlier fund-raising history is also referenced in the article context. In the quarter ended June 30, 2024, Craftsman Automation issued 27,27,272 equity shares (face value ₹5) through a QIP at an issue price of ₹4,400 per share, aggregating ₹1,200 crore. The stated objects included repayment or pre-payment of certain borrowings, acquisition of balance equity shares of DR Axion India Private Limited, and general corporate purposes. The 2026 shareholder approval is broader, setting an enabling framework up to ₹2,000 crore, rather than launching a specific tranche.

Market impact: what changes for investors right now

From a market and shareholder perspective, the most immediate change is procedural: the company now has shareholder authorisation to access capital markets up to ₹2,000 crore through multiple routes. There is no confirmed issuance in the resolution text provided, so immediate dilution is not implied. The impact on the balance sheet or cash flows will depend on whether the company chooses equity, debt, or hybrids, and on how much is deployed toward capex versus repayment of borrowings. Investors typically monitor subsequent filings for instrument selection, pricing approach, and timelines.

Why the resolution matters

A special resolution for fundraising is often used to shorten execution timelines when market windows open, especially for placements or staged issuances. For Craftsman Automation, the mandate also aligns with the stated end uses: capacity expansion, working capital, and debt management. The presence of multiple permitted routes, including ADRs/GDRs and debt instruments, indicates the company wants flexibility on both geography and instrument type. But the resolution is an enabling step, and the eventual financial effect will only become clear after the board finalises terms and any regulatory clearances are obtained.

Conclusion

Craftsman Automation’s June 13, 2026 EGM approval gives the board authority to raise up to ₹2,000 crore across several instruments for capex, working capital, and repayment or pre-payment of borrowings. The next set of investor-relevant updates will be any board decisions on the chosen route, tranche details, and timing, including QIP-specific deadlines if that option is used.