Shivam Autotech Limited has informed the Exchange about General Updates
SHIVAMAUTO · price
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Shivam Autotech Limited has allotted 250 secured, unlisted, unrated, redeemable Non-Convertible Debentures (NCDs) on a private placement basis. Each NCD has a face value of Rs. 10 lakh, bringing the total issue size to Rs. 25 crore. The NCDs carry a coupon rate of 12.00% per annum and are secured by a first-ranking exclusive charge over specified receivables. The tenure, allotment date, and maturity date will be decided by the Board or a committee. The company is raising this debt through private placement and the NCDs will not be listed on any stock exchange.
The company is raising Rs. 25 crore of secured debt at a relatively high 12% interest rate via private placement, which will increase its interest burden but provides funding without dilution of equity. The high coupon suggests the borrowing cost is elevated, and shareholders should monitor how this debt is utilised and its impact on the company's financials.