Shivam Autotech rights issue: board to set terms Oct 8, 2026

Board meeting on October 8: what is on the agenda

Shivam Autotech Ltd has informed the exchanges that its Board of Directors will meet on October 8, 2026 to finalise key terms of a proposed rights issue. The board is expected to approve the issue price, the number of fully paid-up equity shares to be issued, the rights entitlement ratio, and the record date. It will also consider the rights issue period and other operational terms tied to the corporate action.

The company’s exchange intimation indicates that the board will also take up the Letter of Offer, Abridged Letter of Offer, Rights Entitlement Letter, and the application form. These are standard documents required to roll out the rights issue to eligible shareholders. Any other matter may be considered with the permission of the Chairperson, as per the agenda outlined in the notice.

Rights issue plan was cleared earlier on July 1, 2026

The October 8 meeting follows the board’s earlier approval of fund raising through a rights issue on July 1, 2026. At that meeting, Shivam Autotech approved raising funds through issuance of equity shares with a face value of ₹2 each. The aggregate amount for the rights issue was stated as up to ₹12,000 lakh, which is ₹120 crore.

The company also approved a draft letter of offer to seek in-principle approvals from BSE and NSE for the rights issue. However, the July board outcome made it clear that the specific terms of the issue such as issue price, entitlement ratio, record date, timing and payment terms would be decided later and disclosed separately.

Shareholders approved key items at the 21st AGM

Shivam Autotech’s shareholders approved agenda items at the company’s 21st Annual General Meeting held on September 25, 2026. The AGM was conducted via video conferencing, according to the company’s disclosures.

A key corporate action tied to the broader capital plan included an increase in authorised share capital. The special business section included a proposal to increase authorised share capital from ₹44 crore to ₹55 crore. The company has also stated that shareholders overwhelmingly approved all three agenda items at the AGM.

Trading window closed from October 1 under insider trading rules

Ahead of the October 8 board meeting, Shivam Autotech closed its trading window for dealing in the company’s securities. The closure became effective from October 1, 2026.

The step was disclosed as part of compliance with the SEBI (Prohibition of Insider Trading) Regulations, 2015 and the company’s internal policies. Such trading window closures are typically adopted around periods when price-sensitive decisions are expected, including fund raising terms and record dates.

What still remains undecided for investors

While the total fund raise size has been disclosed as ₹12,000 lakh (₹120 crore), several terms remain pending until the board’s decision. The company has stated that the rights issue dates are not finalised and several fields such as price, entitlement ratio, record date, and key timelines were marked as “coming soon” in published issue detail summaries.

The disclosures also indicate that the face value for the proposed equity shares is ₹2 per share, and the shares are expected to be listed on BSE and NSE. A separate data point mentioned the market price on the date of rights issue approval as ₹16.64 per share.

Stated objectives: balance sheet support and working capital

Shivam Autotech has linked the rights issue to balance sheet strengthening. The company has stated that, subsequent to the financial year close, it initiated a rights issue to augment working capital, reduce leverage, and convert promoter loans into equity.

A use-of-proceeds split was also provided in the issue detail summary. The net proceeds from the offer are proposed to be used for adjustment of unsecured loans of the company’s promoter against application money payable on subscription to rights entitlements of ₹75 crore, and funding working capital requirements of ₹32 crore. Beyond these items, no additional allocation details were provided in the text.

Related fund raising actions referenced in disclosures

Apart from the rights issue, the company’s broader capital-raising references include multiple instruments. Shivam Autotech has said it received in-principle approval from NSE and BSE for a preferential issue of 12,000 optionally convertible debentures of ₹1,00,000 each, convertible into 4,16,52,204 equity shares at a minimum price of ₹28.81 per share.

The company has also stated that it concluded a postal ballot process with shareholder approval above 99.94% for five special resolutions, including the OCD issuance and a special rights grant to the investor. Separately, it has disclosed that its board approved issuance of secured, unlisted, redeemable, non-convertible debentures worth up to ₹25 crore through private placement.

Key facts table: what is known and what is pending

Market impact: why the October 8 decisions matter

For shareholders, the most important near-term information expected from the October 8 meeting is the issue price and the rights entitlement ratio, since these determine the cash outlay required to participate and the level of dilution if an investor does not subscribe. The record date will decide which shareholders become eligible to receive rights entitlements.

The company’s disclosures indicate that the rights issue is positioned as a balance-sheet support measure, including conversion of promoter loans and funding working capital. The earmarked amounts of ₹75 crore for adjustment of promoter unsecured loans and ₹32 crore for working capital provide a clearer lens into how the company plans to deploy proceeds, subject to final offer terms and regulatory processes.

Analysis: where this fits in Shivam Autotech’s capital plan

The July 1 board outcome placed the rights issue under regulatory and statutory approvals, including SEBI (ICDR) Regulations, 2018, SEBI listing regulations, and the Companies Act, 2013. The October 8 meeting is structured to convert the earlier approval into executable terms and documentation, including offer documents and formal timelines.

The parallel references to OCDs and NCDs suggest that the company has evaluated multiple channels to raise capital. However, the immediate catalyst for equity shareholders is the rights issue board meeting, because it will define the price, ratio and record date that determine shareholder participation and the timetable for the issue.

Conclusion: next disclosures to watch after October 8

Shivam Autotech’s October 8, 2026 board meeting is set to finalise the core mechanics of the ₹120 crore rights issue approved in July. Investors will watch for the issue price, entitlement ratio, record date, and the opening and closing dates of the rights issue.

After the board decision, the company is expected to disclose the approved terms to the exchanges, along with the finalised offer documents and a clearer schedule for credit of rights entitlements and the subscription window.