Shivam Autotech Limited — Important, 12-02-2025: General Updates

Shivam Autotech Ltd has approved the allotment of 1,200 secured unlisted, unrated redeemable Non-Convertible Debentures (NCDs) with a face value of ₹1,00,000 each, aggregating to ₹12 crore through private placement. The NCDs will carry a coupon rate of 12.85% per annum, payable as per the transaction documents. These debentures are secured by assets including a Debt Service Reserve Account for interest servicing and a second charge on the company's fixed assets.

The tenure of the NCDs will be up to 48 months with a 12-month moratorium. The redemption terms will align with the provisions of the debenture trust deed, which will be established between the company and the debenture trustee. This funding could enhance liquidity and support planned growth initiatives, presenting a positive outlook for the company's operational capabilities. Investors should monitor the effective deployment of these proceeds and the associated financial health moving forward.