Shivam Autotech Limited has announced a rights issue to raise up to Rs 120 crore by issuing 10 crore equity shares. The shares are priced at Rs 12 each, with an entitlement ratio of 19:25. The record date is set for October 15, 2026, and the issue will remain open for subscription between October 22 and November 19, 2026.
Shivam Autotech Announces Rs 120 Crore Rights Issue
Total issue size of Rs 120 crore with an entitlement ratio of 19:25.
Issue price fixed at Rs 12 per share with a record date of October 15, 2026.
Reader Takeaway: Existing shareholders get a chance to increase stakes at Rs 12; watch for the liquidity requirement.
What just happened
The Board of Directors of Shivam Autotech Ltd has finalized the terms for its upcoming rights issue. The company aims to raise capital through the issuance of 10 crore fully paid-up equity shares with a face value of Rs 2 each at a premium of Rs 10 per share.
Why this matters
This capital raise will significantly expand the company's equity base from approximately 13.15 crore shares to 23.15 crore shares, assuming full subscription. The proceeds are expected to bolster the company's financial position, though it will lead to an equity dilution for current shareholders who choose not to participate.
Important Timeline
Investors must hold shares by the record date of October 15, 2026, to be eligible for the rights entitlement. The issue opens for subscription on October 22, 2026, and closes on November 19, 2026. Rights Entitlement (RE) trading will be available on the stock exchanges until November 13, 2026.
Payment and Participation
The full amount of Rs 12 per share must be paid upon application. The company has clarified that once applications are submitted, they cannot be withdrawn after the closing date of the issue, though the company reserves the right to extend the subscription period by up to 30 days if required.