Nature of the Disclosure

Regulatory filing pursuant to SEBI LODR Regulation 30, containing a Notice of Postal Ballot for seeking shareholder approval to alter the objects of the Initial Public Offer (IPO) for which the amount was raised.

Key Quantitative Figures

IPO Proceeds Summary (as on March 31, 2026):

  • Total Amount Raised: ₹1,844.54 Lakhs
  • Total Amount Utilized: ₹1,697.65 Lakhs
  • Total Unutilized Amount: ₹147.00 Lakhs

Object-wise Utilization (₹ in Lakhs):

  • Object 1 (Purchase of existing store, Nana Chiloda, Ahmedabad): Allocated: 425.00; Utilized: 425.11; Unutilized: 0.00. Note: ₹425.00 Lakhs was utilized from IPO proceeds; ₹0.11 Lakhs was funded through internal accruals.
  • Object 2 (Purchase of fit-outs for Three (3) new stores): Allocated: 463.32; Utilized: 316.32; Unutilized: 147.00
  • Object 3 (To Meet Working Capital Requirements): Allocated: 450.00; Utilized: 450.00; Unutilized: 0.00
  • Object 4 (General Corporate Purpose): Allocated: 275.00; Utilized: 275.00; Unutilized: 0.00
  • Object 5 (Public Issue Expenses): Allocated: 231.22; Utilized: 231.22; Unutilized: 0.00

Proposed New Expenditure:

  • Total Estimated Cost for Bayad Store Setup: ₹152.43 Lakhs (inclusive of 18% GST)
  • Amount to be Funded from Unutilized IPO Proceeds: ₹147.00 Lakhs
  • Amount to be Funded from Internal Accruals: ₹5.43 Lakhs

Dates of Action

  • Cut-off Date / Record Date: Friday, July 03, 2026
  • Board Meeting Date: July 08, 2026
  • Notice Date: July 08, 2026
  • Lease Agreement Signed: June 03, 2026
  • E-Voting Commencement: 9:00 a.m. (IST) on Thursday, July 09, 2026
  • E-Voting End: 5:00 p.m. (IST) on Friday, August 07, 2026
  • Result Declaration: On or before August 11, 2026
  • Proposed Store Launch: End of August 2026 (tentative)

Parties Involved

  • Regulators: Securities and Exchange Board of India (SEBI), Ministry of Corporate Affairs (MCA), BSE Limited
  • Registrar and Share Transfer Agent (RTA): MUFG Intime India Private Limited (Formerly Link Intime India Private Limited)
  • E-Voting Service Provider: National Securities Depository Limited (NSDL)
  • Scrutinizer: Mr. Nayan Pitroda (Membership no. A58473), Partner of M/s. PNK & Co., Practicing Company Secretary
  • Vendors: M/s. Dhyani Interio Exterio Pvt. Ltd. (L1 vendor, quote: ₹152.43 Lakhs), M/s. Balaji Shelving Pvt. Ltd. (quote: ₹159.57 Lakhs)
  • Cost Vetting Agency: B2K Analytics Private Limited

Purpose / Rationale

The company seeks to vary the object of utilization for the unutilized IPO balance of ₹147.00 Lakhs. The funds were originally allocated for fit-outs of a third store in Lunawada (Mahisagar, Gujarat). The company has now identified a more suitable location in Bayad, Aravalli district, Gujarat, for which it has signed a registered lease agreement. The justification includes lower rental costs and a location deemed more suitable for business enhancement.

Voting and Approval Process

  • The matter requires a Special Resolution passed through a Postal Ballot via e-voting only.
  • The company has appointed NSDL to provide the e-voting facility.
  • Critical Approval Threshold: The resolution must be approved by a majority of more than 90% of the shareholding (present and voting). If this specific threshold is not met, even if the statutory special resolution threshold (75%) is achieved, the company will NOT implement the variation.
  • If the 90% threshold is not met, the provisions of Regulation 281A of SEBI ICDR Regulations pertaining to an exit offer by promoters will not apply.

Financial and Operational Impact

  • Earnings Impact: Expected to be positive due to lower rental expenses at the new location, potentially improving operating margins.
  • Cash Flow Impact: Minimal. The primary expenditure (₹147 Lakhs) is from existing IPO proceeds. Only a marginal ₹5.43 Lakhs will be funded from internal accruals.
  • Capital Structure Impact: None disclosed.

Location Details

  • Original Planned Location: Lunawada (Mahisagar, Gujarat)
  • New Proposed Location: Unit Nos. 1 to 8 and 51 to 58 (16 shops), Ground Floor, Block "A", "Shreeji Madhuram Complex", Moje Bayad, Tal. & Dist. Aravalli, Gujarat – 383 325.
  • Size: Approximately 4,000 square feet.

Additional Information

  • The Explanatory Statement, independent Cost Vetting Report, and vendor quotations are available for inspection on the company's website www.citysquaremart.com.
  • The Board of Directors recommends the resolution.
  • No Director or Key Managerial Personnel is concerned or interested in the resolution, except to the extent of their shareholding.