Shivam Autotech Limited has informed the Exchange about General Updates
SHIVAMAUTO · price
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Shivam Autotech Limited has allotted 2,000 secured, unlisted, unrated, redeemable Non-Convertible Debentures (NCDs) with a face value of Rs. 1,00,000 each, raising a total of Rs. 20 crore through private placement. The NCDs carry a coupon rate of 12.85% per annum, have a tenure of up to 48 months with a 12-month moratorium period, and will not be listed on any stock exchange. The issue is secured by the company's Rohtak plant assets (already charged to YES Bank), a debt service reserve account covering one quarter of interest, and a second charge on all fixed assets. The Board of Directors approved this allotment on July 3, 2025.
The company is raising Rs. 20 crore of debt at a relatively high cost (12.85%), which will increase interest expenses and could pressure margins. The 12-month moratorium provides near-term cash flow relief, but the high coupon and second-charge structure suggest this is a higher-risk borrowing, which existing shareholders should monitor closely for any dilution of asset value or refinancing risk.