Shivam Autotech Rights Issue 2026: ₹119.92 Crore Plan

Rights issue terms announced

Shivam Autotech Ltd has announced a rights issue to raise approximately ₹119.92 crore. The company plans to issue 9,99,36,366 fully paid-up equity shares at ₹12 each. Each share has a face value of ₹2 and carries a premium of ₹10. The entitlement ratio is 19 rights equity shares for every 25 fully paid-up shares held. The record date for determining eligible shareholders is October 15, 2026. The issue is intended for existing shareholders whose names or beneficial ownership appear as of that date. The company has stated that the issue shares will be listed on both BSE and NSE after allotment. The issue represents Shivam Autotech's second rights issue since December 2021.

Revised issue size and schedule

Earlier disclosures referred to an issue of up to 10 crore shares aggregating ₹120 crore. A corrigendum dated October 21, 2026 revised the offer to 9,99,36,366 shares, taking the stated issue size to about ₹119.92 crore. The revised subscription window is scheduled to open on October 28, 2026. It is scheduled to close on November 19, 2026. Rights entitlements can be renounced on-market until November 13, 2026. The deemed date of allotment is stated as November 23, 2026. A revised disclosure also indicated November 25, 2026 as the proposed listing date. Investors should rely on the latest company, exchange and registrar notices for final dates.

Eligibility and entitlement ratio

Shareholders needed to hold Shivam Autotech shares in their demat accounts by the applicable settlement date before the October 15 record date to receive rights entitlements. The last date to buy shares cited in the issue schedule was October 14, 2026. For every 25 fully paid-up equity shares held on the record date, an eligible shareholder receives the right to apply for 19 new shares. Rights entitlements allow shareholders to apply, partly or fully, within the subscription period. Shareholders may also renounce their entitlements, subject to the applicable process and deadline. The rights shares are being offered at a fixed price of ₹12 per share. Full payment is required at the time of application.

Key dates at a glance

Fundraising purpose disclosed

The rights issue is linked to Shivam Autotech's balance-sheet restructuring and operating liquidity requirements. Information accompanying the offer said promoter entity Dayanand Munjal Investments Private Limited would adjust ₹75 crore of outstanding unsecured loans against equity subscription money. This conversion is intended to reduce the company's outstanding unsecured loan obligation through equity participation. The disclosures also earmarked ₹32 crore from cash proceeds for long-term working capital replenishment. The stated objectives indicate that the fundraise combines a debt-related adjustment with fresh operational funding. The precise deployment remains subject to subscriptions, allotment and the terms set out in the offer documents. Investors should review the Letter of Offer for the full objects of the issue and associated risk factors.

Board approvals and offer filing

Shivam Autotech's board had initially approved raising up to ₹120 crore through a rights issue on July 1, 2026. The board subsequently approved the issue terms, including the ₹12 issue price, on October 8, 2026. The record date of October 15 was also approved at that meeting. The Letter of Offer was submitted to SEBI, BSE and NSE on October 13, 2026. The company had received in-principle approvals from the exchanges on September 29, according to the information provided. The later corrigendum changed the number of shares and the offer timetable from earlier announcements. This sequence makes the corrigendum and subsequent exchange filings particularly relevant for applicants.

Application routes for shareholders

Eligible investors can apply through the ASBA process using supported net-banking facilities. The company has also referred to the registrar's R-WAP facility as an application route. Some issue material mentions offline application through the relevant form and Self-Certified Syndicate Bank process. Applicants should use the application method available to them and follow the instructions in the issue documents. Since the offer requires full payment on application, investors need sufficient funds for the shares applied for. Rights entitlements and applications are generally handled through demat and banking systems rather than through physical share certificates. Shareholders should check their demat account for entitlement credits and confirm deadlines before submitting an application.

Financial context from disclosed figures

The available financial summary lists Shivam Autotech's 2024 revenue at ₹473.61 crore. Expenses for that year were listed at ₹520.03 crore. Profit after tax was reported at ₹50.19 crore in the same source material. These figures provide context for a ₹119.92 crore capital raise, although the supplied data does not provide a complete reconciliation of the reported financial line items. The rights issue size is therefore material relative to the company's disclosed operating scale. The company has specifically linked part of the fundraise to working capital and the conversion of unsecured loans. Shareholders evaluating the offer may consider the stated use of funds alongside the full financial disclosures in the Letter of Offer.

Equity capital after the issue

If fully subscribed, the post-issue equity share capital is stated to rise to 23,14,95,219 equity shares of ₹2 each. The additional shares may change the ownership percentage of investors who choose not to subscribe or renounce their entitlements. Existing shareholders can use their entitlement to maintain participation relative to their current holding, subject to their application and allotment. The final number of shares issued will depend on subscription and allotment outcomes. Listing of the new shares is proposed after allotment, subject to the relevant approvals and procedures. The issue price and entitlement ratio are fixed under the announced terms. Investors should separately assess market price movements, liquidity and the terms of the offer before making an investment decision.

What investors should monitor

The immediate milestones are the November 13 deadline for on-market renunciation and the November 19 issue closing date. The deemed allotment date is scheduled for November 23, followed by the proposed listing on November 25. These dates follow the revised schedule cited in the October 21 corrigendum. Earlier reports mentioned different opening and closing dates, including an October 22 opening, before the revised timeline was reported. The latest exchange filings, Letter of Offer and registrar communications should be treated as the primary reference for transaction-related decisions. Shivam Autotech's rights issue is structured to raise capital while addressing unsecured loans and working-capital requirements. The allotment outcome and subsequent listing will determine the final amount raised and the resulting equity expansion.