Patil Automation 2026: 96.38 Cr Preferential Issue Plan

What the board approved and why it matters

Patil Automation Limited (NSE: PATILAUTOM | INE17GV01016) said its Board of Directors has approved a proposal to raise an aggregate amount of ₹96.38 crore through a preferential issue of equity shares and convertible warrants. The announcement was dated September 10, 2026, and the company said the fund raise is subject to approval of the members. The proposed issue price for both equity shares and warrants is ₹246 per instrument. The company positions itself as a provider of turnkey welding, assembly, and robotics-integrated automation solutions. It also said it continues to build momentum as automation adoption rises across manufacturing industries due to demand for productivity, precision, and efficiency.

Fund raise structure: equity shares and warrants

The preferential issue has two components: equity shares and convertible warrants. Equity shares are proposed up to 20,94,000 shares, aggregating up to ₹51.51 crore. Convertible warrants are proposed up to 18,24,000 warrants, aggregating up to ₹44.87 crore. The total proposed amount is ₹96.38 crore. The company also referenced a corporate update that described the plan as “fund raising up to 963.8 million rupees”, which corresponds to ₹96.38 crore.

Convertible warrants: conversion window and terms

Patil Automation said each convertible warrant will be convertible into one equity share of the company. The conversion option can be exercised within 18 months from the date of allotment. This structure typically gives investors the option to participate in equity at a later date, within the stated period, under the terms of the allotment. The company has not provided additional conversion-related conditions in the supplied disclosure beyond the 18-month window.

Key proposed allottees for the warrants

The proposed issue of convertible warrants includes three named allottees. Motilal Oswal Financial Services Limited is proposed to receive 9,00,000 warrants. Calliope Capital Advisors LLP is proposed to receive 6,00,000 warrants. Manoj Pandurang Patil, identified as Promoter and Managing Director of Patil Automation Limited, is proposed to receive 3,24,000 warrants.

Key proposed allottees for the equity shares

The proposed issue of equity shares includes Subhkam Ventures I Private Limited (6,00,000 equity shares), Motilal Oswal Financial Services Limited (5,10,000 equity shares), and Calliope Capital Advisors LLP (3,35,400 equity shares). The company also noted that other proposed allottees are included as detailed in its regulatory disclosure. Beyond this statement, the additional names and quantities are not provided in the text.

Preferential issue snapshot (as disclosed)

Business context: automation demand and positioning

Patil Automation described the backdrop as rising adoption of automation across manufacturing industries. The company attributed this to increasing needs for higher productivity, precision, and efficiency. It also described itself as a “trusted industrial automation solutions provider” focused on customised automation systems for the automotive sector. The company was incorporated in 2015, according to the provided material.

Financial and operational disclosures cited in the material

The text states that PAT (profit after tax) increased by 49% year-on-year in FY25, indicating profitability growth in that period. Separately, the material includes historical IPO-related details and subscription data from June 2025. While these do not directly relate to the September 2026 preferential issue approval, they provide background on prior fundraising and investor demand.

IPO background: funds raised and use of proceeds

The material states “Funds Raised in the IPO” as ₹66.10 crore, shown as a fresh issue of ₹66.10 crore. It also includes a separate line stating the company raised ₹69.61 crore through an initial public offer, presented in a different excerpt. The utilisation table in the text allocates ₹62.01 crore (93.81%) for capital expenditure to set up a new manufacturing facility and ₹4 crore (6.05%) for repayment of borrowings. No amount is listed for general corporate purpose in that utilisation table.

Market and timeline datapoints included in the disclosure

The supplied content includes an example of a corporate action row showing a “Quarterly Result Announcement” dated 07 May 2026, with LTP at announcement of ₹177.50 and LTP at record day of ₹182.90. It also lists the IPO schedule dates from June 2025, including issue open (16 Jun 2025) and listing date (23 Jun 2025). These datapoints are presented in the material as reference tables.

What to watch next

The company has stated the preferential issue is subject to approval of the members of the company. Investors tracking the fund raise will typically watch for the shareholder approval process and subsequent allotment-related disclosures, including final allottee lists and allotment dates, as and when the company files them with exchanges. The company has indicated that additional proposed allottees are contained in its regulatory disclosure, which would be the primary reference for complete allotment details.