Shivom Investment & Consultancy Ltd. has emerged from Corporate Insolvency Resolution Process with NCLT approval. The company is shifting from NBFC to metal product manufacturing, though commercial operations are yet to start.
Shivom Investment Completes CIRP, Pivots to Metal Manufacturing
Shivom Investment & Consultancy Ltd. has successfully concluded its Corporate Insolvency Resolution Process (CIRP) after the National Company Law Tribunal (NCLT) approved its resolution plan on August 18, 2025. ## What just happened The company is now under new management and has changed its business objective. It is transitioning from its previous NBFC setup to metal product manufacturing. Commercial operations in this new venture have not yet commenced as of the report date. ## Why this matters This marks a significant turning point for Shivom Investment, as it attempts a revival after insolvency. The pivot to a new industry under new leadership offers a potential path forward, but past issues cast a shadow. ## The backstory Shivom Investment faced severe financial and governance challenges. Its equity shares are suspended from trading on the BSE due to non-payment of listing fees and other procedural reasons. The Securities and Exchange Board of India (SEBI) had previously imposed a ₹20 lakh penalty on the company for past non-compliances. Historical forensic audits by BSE also revealed governance issues, including falsified financial statements and misrepresented investments. ## What changes now With the NCLT approval, the company is under new management. The focus shifts entirely to establishing operations in the metal product manufacturing sector. However, the immediate challenge is to address the trading suspension and rectify past compliance failures. ## Risks to watch Key risks include the ongoing trading suspension, significant accumulated losses (₹63.27 crore as of March 31, 2024), and the qualified opinion from the statutory auditor regarding accounting deviations and weaknesses in internal controls. The lack of operational commencement is also a critical factor. ## Peer comparison Direct peer comparison in the metal product manufacturing sector is difficult given Shivom's current non-operational status and historical issues. However, companies in this sector typically focus on production capacity, raw material sourcing, and market demand, areas Shivom needs to develop. ## Context metrics (time-bound) For FY 2023-24, Shivom Investment reported total income of ₹0.17 crore and a net loss of ₹0.49 crore. This is a significant reduction from FY 2022-23, where income was ₹3.52 crore and net loss was ₹49.01 crore, reflecting the non-operational phase during CIRP. ## What to track next Investors will be closely watching for updates on the commencement of commercial operations in metal product manufacturing. Key developments to track include the lifting of the BSE trading suspension and progress in strengthening internal controls and statutory compliances.
