Shivam Autotech Rights Issue: ₹120 Cr Terms Set (2026)

What the board approved and why it matters

Shivam Autotech Limited has approved the terms of a rights issue aimed at raising up to ₹120 crore. The board cleared the issuance of up to 10 crore fully paid-up equity shares at an issue price of ₹12 per share. The fundraising size is notable in the context of the company’s market capitalisation, with the disclosure stating the amount is equivalent to over half of the current market cap. The decision formalises key operating details that are required before a rights issue opens to existing shareholders.

The approvals were taken at a board meeting held on October 8, 2026. Along with the pricing and ratio, the board adopted the Letter of Offer for filing with the stock exchanges. The company has indicated the Letter of Offer will be filed with BSE Limited and the National Stock Exchange of India Limited (NSE) and later dispatched to eligible shareholders as per the record date.

Issue size, price, and premium explained

The rights issue is for up to 10,00,00,000 equity shares. The issue price is ₹12 per share, which includes a premium of ₹10 over a face value of ₹2 per share. In aggregate, this amounts to ₹120 crore (also described as ₹12,000 lakh). The rights issue is fully payable at the time of application, as stated in the provided details.

The company has also stated that no withdrawal of an application will be permitted after the issue closing date. This is a standard operational condition highlighted in the issue communication.

Rights entitlement ratio and who is eligible

The rights entitlement ratio has been fixed at 19:25. This means eligible shareholders are entitled to subscribe to 19 rights equity shares for every 25 equity shares held as on the record date. The record date for determining eligible shareholders has been fixed as October 15, 2026.

Rights issues allow shareholders to maintain their ownership percentage if they choose to subscribe in proportion to their entitlement. The company has also referenced on-market renunciation, which enables eligible investors to renounce their entitlements (sell/transfer) within a defined window.

Key dates: record date, opening, closing, renunciation

Shivam Autotech has disclosed a subscription period starting October 22, 2026. The closing date mentioned in the exchange-style summary is November 19, 2026. The last date for on-market renunciation of rights entitlements is stated as November 13, 2026.

A separate line in the provided material also states “Shivam Autotech Rights Issue dates are 22 October – 13 November 2026.” Since the same dataset also specifies a closing date of November 19, 2026 and a renunciation cut-off of November 13, 2026, readers should rely on the final issue schedule and clarifications contained in the Letter of Offer once filed and circulated.

Regulatory steps and exchange approvals referenced

The disclosures mention that in-principle approvals from NSE and BSE were received via letters dated September 29, 2026. The board’s October 8 meeting also adopted the Letter of Offer for filing with the exchanges. Earlier, at a board meeting held on July 1, 2026, the company had approved fundraising by way of a rights issue, with the detailed terms to be finalised later.

The dataset also references that the proposal is subject to regulatory and statutory approvals under SEBI (ICDR) Regulations, 2018, SEBI listing regulations, and the Companies Act, 2013. The board’s documented agenda included approving the Letter of Offer and related documents such as the Abridged Letter of Offer, Rights Entitlement Letter, and the application form.

Proposed use of proceeds: promoter loan adjustment and working capital

The material provided includes a proposed deployment plan for the net proceeds. Two specific uses are listed:

• Adjustment of unsecured loans of the company’s promoter against application money payable on subscription to Rights Entitlements: ₹75 crore
• Funding working capital requirements of the company: ₹32 crore

These line items indicate that a meaningful portion of the proceeds is earmarked for settling promoter-linked unsecured loans through the rights subscription mechanism, with an additional allocation for working capital. Any remaining allocation, if applicable, is not detailed in the provided text and would typically be explained in the Letter of Offer.

Capital impact and post-issue share count disclosed

The company has stated that post-issue equity shares (assuming full subscription) will be 23,14,95,219 shares of ₹2 each (231,495,219 shares). This post-issue number is presented as contingent on full subscription. Investors typically track this because it frames the expanded equity base after the fundraising.

What shareholders should track from here

For shareholders, the immediate operational trigger is the record date of October 15, 2026, which determines eligibility. The entitlement ratio of 19:25 sets the potential subscription quantity for each eligible holder. The timeline also includes an on-market renunciation deadline of November 13, 2026, which matters to those who plan to renounce rather than subscribe.

The company has also noted that other operational terms, including fractional entitlements and a detailed issue schedule, will be included in the Letter of Offer. That document is expected to consolidate dates, procedures, and final instructions for shareholders.

Market impact: what the disclosures directly indicate

The disclosed fundraising size is up to ₹120 crore. The dataset explicitly notes this is equivalent to over half of the company’s current market capitalisation, signalling a sizable equity issuance relative to the company’s existing market value. The issue price is ₹12 per share for up to 10 crore shares, and the entitlement ratio and dates have been fixed.

The provided material does not include price moves in SHIVAMAUTO shares, subscription projections, or broker/analyst commentary. As a result, the direct market impact that can be stated from the disclosures is limited to the scale of the issuance, the potential expansion in share capital (subject to full subscription), and the stated uses of proceeds.

Analysis: why the structure of the issue stands out

Two elements stand out in the announced structure. First, the issue is fully payable at application, which affects cash outlay timing for subscribing shareholders. Second, the proceeds allocation includes a specific ₹75 crore adjustment of promoter unsecured loans against application money payable on subscription to rights entitlements, alongside ₹32 crore for working capital.

The disclosures also show a clear regulatory sequence: board approval in July 2026 for the fundraise, in-principle exchange approvals on September 29, 2026, and finalisation of issue terms with adoption of the Letter of Offer on October 8, 2026. This sequence helps investors understand where the company is in the execution cycle and what documents to monitor next.

Conclusion

Shivam Autotech’s board has approved a ₹120 crore rights issue at ₹12 per share with a 19:25 entitlement ratio, fixing October 15, 2026 as the record date and setting the subscription window starting October 22, 2026. The company has adopted the Letter of Offer for exchange filing after receiving in-principle approvals from BSE and NSE dated September 29, 2026. The next key step for shareholders is to track the final Letter of Offer for the detailed schedule, procedures, and any clarifications on the closing date and renunciation timelines.