Craftsman Automation fund raise: ₹2,000 crore approved

Shareholders back capital-raising mandate

Craftsman Automation Ltd has received shareholder approval to raise up to ₹2,000 crore, following an Extraordinary General Meeting (EGM) held on June 13, 2026. The resolution was passed with 97.71% of votes in favour, giving the company a broad mandate to access capital when required.

The approval is an enabling step rather than an immediate fund raise. It authorises the board and management to execute a fundraising plan in one or more tranches, depending on business needs and prevailing market conditions.

Investors are likely to watch for follow-up disclosures that specify the timing, instrument, pricing, and end-use of funds once the company decides to proceed.

What was approved at the June 13 EGM

At the EGM, shareholders overwhelmingly approved the proposal to raise capital up to ₹2,000 crore through various permissible instruments. The company stated that the fund-raising routes could include equity shares and a wide mix of options such as further public offer, preferential allotment, rights issue, Qualified Institutions Placement (QIP), private placement, American Depository Receipts (ADRs), Global Depository Receipts (GDRs), and debt instruments.

The issuance, as outlined in the notice, is to be conducted in line with the Companies Act, 2013, the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, and other applicable legal and regulatory requirements.

While the mandate provides flexibility, the company has not indicated that funds will be raised immediately. The resolution primarily ensures the company has the required approvals in place when it chooses to access capital.

Voting outcome: turnout and support levels

The voting data disclosed around the EGM indicates high participation and strong support for the resolution. Shareholders voted on the proposal following a cut-off date and remote e-voting window.

The meeting was conducted via Video Conference (VC) or Other Audio-Visual Means (OAVM), and the company provided remote e-voting access ahead of the meeting. The e-voting facility was also available at the time of the EGM for shareholders who had not voted during the remote window.

Key dates and process details

Craftsman Automation had set out a clear schedule for shareholder participation and voting, including a cut-off date and remote e-voting timeline.

The company also indicated that if a QIP route is used, the process must be completed within 365 days of the special resolution being passed.

Where the money may be used

The company has outlined multiple potential uses for proceeds, without committing to a final allocation at this stage. Based on the disclosures, the proceeds are intended for:

• Capital expenditure, including capacity expansion
• Incremental working capital requirements
• Repayment or pre-payment of existing borrowings
• Investments in subsidiaries and joint ventures
• General corporate purposes

The final allocation is expected to be determined by the board at the time of issuance, based on business requirements and regulatory considerations.

Debt focus and funding flexibility

Separately, Craftsman Automation has been described as planning to raise up to ₹2,000 crore to reduce an estimated ₹5,500 crore in outstanding borrowings. The stated intent is to strengthen the financial position and lower interest expenses.

The board had approved the fundraising proposal at a meeting held on May 16, 2026, with the plan to raise funds in one or more tranches through eligible instruments. The EGM approval now provides the shareholder consent required for the company to proceed, subject to any necessary regulatory approvals.

Pricing guardrails if the company uses a QIP

The disclosures also flag pricing conditions tied to a potential QIP. The issue price for any new securities would be linked to the QIP floor price, and a maximum discount of 5% would be allowed.

The company has historical precedent for this route. An exchange filing dated June 18, 2024 referred to a QIP plan of ₹1,200 crore (1,20,000 lakhs), with a floor price of ₹4,426.11 per equity share and a discount limit of 5% on the floor price in line with regulations and shareholder approvals.

Financial context: FY26 performance and dividend proposal

The fundraising approval comes at a time when the company has reported strong operating numbers for FY26. Craftsman Automation reported its highest-ever consolidated revenue of ₹8,069 crore for FY26, with EBITDA of ₹1,300 crore, up 51% year-on-year. Profit after tax (PAT) was reported at ₹384 crore, up 91% year-on-year.

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

Capacity expansion signals: Hosur factory plan

In a separate disclosed plan, Craftsman Automation said it intends to establish a new factory at SIPCOT Industrial Park, Shoolagiri, Hosur, with an investment of about ₹150 crore. The company indicated the additional manufacturing facilities in South India would cater to growing demand for automotive components.

This capex plan aligns with the broader stated purposes for which the ₹2,000 crore fundraising approval may be used, including capacity expansion and incremental working capital.

Market impact and what investors should track next

The EGM outcome reduces execution friction for any future capital raising because the company now has shareholder authorisation to choose between multiple routes such as equity issuance, debt instruments, rights issues, QIP, ADRs, and GDRs.

But the approval itself does not change the company’s capital structure until the board announces an actual issuance. Investors will therefore focus on the next set of company announcements, including the quantum of funds raised (if any), the method of issuance, the timing, and the intended use of proceeds.

Conclusion

Craftsman Automation’s shareholders have cleared a key governance step by approving a ₹2,000 crore fund-raising mandate with 97.71% support at the June 13, 2026 EGM. The company now has the flexibility to raise capital through multiple instruments, with stated uses spanning capex, working capital, and debt repayment. The next catalyst for investors will be specific disclosures on when the company plans to raise funds and through which route.