Craftsman Automation Limited has announced that its Board of Directors has approved a proposal to raise funds amounting to ₹2,000 crores. The capital infusion will be executed through the issuance of equity shares or other eligible securities. The funds are primarily intended to facilitate the repayment or pre-payment of existing company borrowings. An Extra-Ordinary General Meeting is scheduled for June 13, 2026, to seek necessary shareholder approvals.
Strategic Fund Raising Initiative
The Board of Directors of Craftsman Automation Limited, in their meeting held on May 16, 2026, gave their approval to raise funds for an aggregate amount not exceeding ₹2,000 crores. The company plans to utilize various routes, including but not limited to further public offers, rights issues, private placements, or qualified institutional placements, to execute this capital raise in one or more tranches.
Debt Reduction and Financial Planning
A primary objective behind this capital raising exercise is to optimize the company’s balance sheet. The proceeds are earmarked for the repayment or pre-payment, either in full or in part, of certain outstanding borrowings currently held by the company. The Board has delegated the authority to a dedicated Fund Raising Committee to oversee the implementation of this plan and make necessary decisions regarding the timing and terms of the issuance.
Shareholder Approval Process
To move forward with this capital raise, the company will seek approval from its shareholders. An Extra-Ordinary General Meeting (EGM) has been convened for June 13, 2026. The meeting will be conducted via video conference or other audio-visual means to facilitate participation. Furthermore, June 6, 2026, has been established as the cut-off date to determine the eligibility of shareholders to cast their votes electronically.
Source: BSE
