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The board of SM Auto Stamping Ltd, at its meeting on 18 July 2025, approved the purchase of a new SEW-630 Ton Press (Model SCL-2-630) to expand production capacity. The company's existing 800T machine, located at its C-13 plant, is already operating at 90% utilization (1,25,000 strokes per month) with no backup machine of similar specification, raising customer concerns about supply disruption. Adding the new machine will double total capacity to 2,50,000 strokes per month. The total investment is Rs. 2.5 crore (including GST), to be financed partly through bank borrowing and partly from internal surplus funds, with commissioning targeted by 31 December 2025.
This is a positive operational update — the company is addressing near-capacity constraints and customer supply risk, which should support future revenue growth. The modest capex size (Rs. 2.5 crore) limits the financial risk, though part of the funding comes from debt.