Report of Monitoring agency for the quarter ended 31st march, 2026
SHIVAMAUTO · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
CARE Ratings, as Monitoring Agency, has submitted its first report for Shivam Autotech's ₹120 crore preferential issue of optionally convertible debentures (OCDs). The issue was completed in two tranches in February 2026. As of March 31, 2026, ₹105.16 crore (87.6%) has been deployed — ₹105.15 crore towards repayment of NCDs issued to Alpha Alternatives Structured Credit Opportunities (AASCO) and ₹0.01 crore for bank charges — leaving ₹14.84 crore idle in the OCD escrow account. The MA flagged two delays: ₹5 crore for working capital was not deployed within 15 days, and ₹37.15 crore was used for reimbursement of prior repayments without being disclosed as an object in the offer document and without specific Board approval. The MA also raised red flags on the company's financial health: it has reported continuous net losses since FY17, a net loss of ₹33.28 crore in 9MFY26 (on top of ₹48.04 crore in FY25), and faces a proposed tax demand of ₹2.46 crore plus ₹2.11 crore penalty. Most critically, the current stock price (₹19.58 as of May 8, 2026) is well below the OCD conversion price of ₹28.81, raising substantial repayment risk if conversion does not occur.
The combination of persistent losses, a below-conversion stock price, and delays in fund utilization signals elevated financial risk and potential liquidity strain. If OCDs are not converted to equity, the company may face a significant cash repayment obligation of ₹120 crore at a time when it is already loss-making.