Shivam Autotech Limited has approved a corporate term loan of Rs 40 crore aimed at part-refinancing existing debt and enhancing working capital requirements, according to a regulatory filing submitted to stock exchanges today.
Shivam Autotech, a part of the automotive component manufacturing sector, supplies precision components to various vehicle manufacturers. The company has been navigating the challenges faced by the auto components industry, including fluctuating raw material costs and evolving market demands.
The refinancing move comes at a time when many auto component manufacturers are restructuring their debt portfolios to optimize financial costs amid rising interest rates. Working capital enhancement typically indicates preparation for increased production or operational expansion.