Craftsman Automation approves ₹2,000 crore raise in 2026

Shareholders clear special resolution at June 13 EGM

Craftsman Automation Ltd shareholders have approved a special resolution authorising the company to raise up to ₹2,000 crore through various fundraising instruments. The decision was taken at an Extraordinary General Meeting (EGM) held on June 13, 2026. The meeting was conducted through Video Conference (VC) or Other Audio-Visual Means (OAVM), in line with the Companies Act, 2013 and relevant SEBI regulations.

The resolution does not, by itself, mean an immediate equity issuance or dilution. Instead, it provides the board with a shareholder mandate that can be used when the company decides market conditions and business priorities support a fundraise.

What the approval actually enables

The special resolution gives Craftsman Automation the authority to raise capital up to an aggregate amount of ₹2,000 crore, in one or more tranches. The company has indicated that the board will decide the timing, structure, and terms when it proceeds with any issuance.

This kind of enabling resolution is typically sought to keep financing options open rather than to announce a specific, near-term transaction. As stated in the EGM agenda, the intent is to provide flexibility for future growth plans, improve financial standing, and address general corporate needs.

Fundraising routes the company can use

The mandate allows Craftsman Automation to explore multiple routes permitted under Indian regulations and other applicable laws. These include equity-linked issuances and debt instruments.

The available options cited include a 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 be undertaken in accordance with the Companies Act, 2013 and SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, along with other applicable requirements.

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

Craftsman Automation has outlined a broad set of potential uses for the funds. The stated purposes include capital expenditure towards capacity expansion, incremental working capital requirements, and repayment or pre-payment of existing borrowings.

The company has also flagged that proceeds may be used for investments in subsidiaries and joint ventures, in addition to general corporate purposes. The final allocation will be determined by the board at the time of issuance, based on business needs and regulatory conditions.

EGM mechanics: cut-off date and e-voting window

The company had set Saturday, June 6, 2026 as the cut-off date to determine eligibility of shareholders to participate and vote. Remote e-voting was opened for three days leading up to the EGM, and e-voting was also available during the meeting for shareholders who had not voted earlier.

The EGM notice for the meeting was published in newspapers on May 20, 2026, as part of the process for seeking shareholder consent.

If a QIP is used: timeline and pricing guardrails

The company has indicated that if it chooses to raise funds through a QIP, the allotment must be completed within 365 days of the special resolution being passed. It has also disclosed that the issue price for any new securities would be linked to the QIP floor price, with a maximum discount of 5% allowed.

These parameters matter for investors because they define the outer limits of execution if the company uses the institutional placement route. At the same time, the company has emphasised that the actual fundraising will depend on market conditions and strategic needs.

Financial context: FY26 performance and dividend recommendation

The fundraising mandate comes after the company reported its highest-ever consolidated revenue of ₹8,069 crore for FY26. It also reported EBITDA of ₹1,300 crore, up 51% year-on-year, and profit after tax (PAT) of ₹384 crore, up 91% year-on-year.

Separately, the board recommended a final dividend of 225%, translating to ₹11.25 per equity share of face value ₹5 each, subject to shareholder approval.

Debt reduction angle and capital structure context

One of the stated uses of the proposed fundraise is repayment or pre-payment of borrowings. A separate disclosure around the plan referenced an estimated ₹5,500 crore in outstanding borrowings, with the fundraising intended to strengthen the financial position and reduce interest expenses.

The company has also raised capital via QIP in the past. In the quarter ended June 30, 2024, it issued 27,27,272 equity shares of face value ₹5 through a QIP at an issue price of ₹4,400 per share, aggregating ₹1,200 crore. The objects included repayment or pre-payment of certain borrowings, acquisition of balance equity shares of DR Axion India Private Limited, and general corporate purposes.

What this means for investors: flexibility now, dilution later only if executed

From an investor perspective, the key takeaway is that the company has secured a shareholder mandate that can be used when needed, without committing to an immediate issuance. The impact on dilution will depend on the eventual instrument mix, such as whether the company chooses equity, convertible securities, or debt.

The enabling resolution can also help the company move faster if an attractive market window opens, since shareholder approval is already in place. However, any actual fundraising will still be subject to required regulatory and statutory approvals, and the board will decide the final structure and allocation at the time of issuance.

Conclusion

Craftsman Automation’s June 13, 2026 EGM approval authorises fundraising up to ₹2,000 crore through multiple routes, providing the board flexibility for capex, working capital needs, and debt reduction. The next steps depend on management’s timing decision and the receipt of regulatory approvals, with specific timelines disclosed if a QIP route is chosen.