Key Quantitative Figures

  • Amount Raised: Rs. 41.01 crore (4101.1 lacs)
  • Date of Fund Raising: January 30, 2026
  • Original Envisaged Proceeds: Rs. 42.97 crore
  • Shortfall in Proceeds: Rs. 1.96 crore
  • Shares Offered: 41,84,000 equity shares
  • Shares Subscribed: 38,10,900 equity shares

Details of Deviation and Reallocation

A deviation in the use of funds occurred due to the preferential issue being undersubscribed. Consequently, the company made the following changes to the object-wise allocation, which were approved by shareholders on July 23, 2026:

  • Investment in Subsidiaries and Strategic Acquisitions: The proposed allocation was completely withdrawn. The original allocation was Rs. 5.00 crore, which was reduced to Rs. 0.00. Rs. 0.00 was utilized against this object, resulting in a variation of Rs. 0.00 for the quarter.
  • Working Capital Requirements: The allocation was enhanced by Rs. 3.53 crore. The original allocation was Rs. 6.23 crore, which was modified to Rs. 9.76 crore. Rs. 3.31 crore has been utilized against this object, resulting in a variation of Rs. 0.00 for the quarter.
  • General Corporate Purposes and Issue Expenses: The allocation was reduced as a corresponding adjustment. The original allocation was Rs. 10.74 crore, which was modified to Rs. 10.25 crore. Rs. 4.34 crore has been utilized against this object, resulting in a variation of Rs. 0.00 for the quarter.
  • Capital Expenditure and Capacity Enhancement: Original allocation of Rs. 15.00 crore remained unchanged at Rs. 15.00 crore. Rs. 3.44 crore has been utilized.
  • Acquisition of Land and Building: Original allocation of Rs. 6.00 crore remained unchanged at Rs. 6.00 crore. Rs. 3.07 crore has been utilized.

Stated Rationale for Variation

The reallocation was undertaken for two primary reasons:

1. The undersubscription of the issue resulted in lower proceeds, necessitating the withdrawal of the planned investment allocation.

2. The company's entry into a new line of business created an additional requirement for funds to support business operations and growth, making enhanced working capital allocation appropriate.

Audit Committee Review

The Audit Committee reviewed the proposed deviation or variation at its meeting held on June 18, 2026. The Committee noted that the variation arose because the issue was undersubscribed. It found the reallocation to working capital (including for the new business) to be reasonable and in the best interest of the company and its members. The Committee also noted that the variation does not affect the rights of the allottees or the lock-in on the allotted shares. It recommended the proposed variation to the Board and shareholders for approval.