Laxmi Organic Industries confirms no deviation in the utilization of Qualified Institutions Placement (QIP) proceeds for the quarter ended December 31, 2025 (Q3 2026). A monitoring agency report by India Ratings & Research Private Limited states proceeds were allocated as planned, primarily to expanding the Dahej facility. The company received shareholder approval for a reallocation of funds towards the Dahej project. All government and statutory approvals are partly obtained.
QIP Funds Properly Allocated
Laxmi Organic Industries announced that there has been no deviation in the utilization of Qualified Institutions Placement (QIP) proceeds. This confirmation pertains to the quarter ended December 31, 2025 (Q3 2026). The company adheres to the objects stated in the placement document dated October 10, 2023. This declaration is supported by a monitoring agency report from India Ratings & Research.
Monitoring Agency Report
India Ratings & Research Private Limited, the monitoring agent, reported no deviations in the use of funds. A certificate from Deloitte Haskins & Sells LLP, dated February 3, 2026, supports this assessment. The funds utilization aligns with the company’s expansion plans, mainly focusing on the Dahej manufacturing facility.
Project Details and Reallocation
The QIP involved the issuance of 9,625,579 Equity Shares at ₹269.20 per share, raising INR 2,591.21 Million. Originally, a portion was intended for a new innovation center at Mahape. However, savings of Rs.109.58 million from the Mahape project were reallocated to the Dahej project, increasing its allocation to Rs.1,729.24 million. This reallocation received shareholder approval via special resolution dated December 6, 2025.
Project Status
The Mahape project is now complete. While some government and statutory approvals are still pending, they are expected to be secured for the current project phase. The Dahej facility expansion is ongoing, with a completion date initially projected for September 30, 2025, but now extended due to delays in government approvals. The unutilized amount is currently invested in mutual funds.
Source: BSE
