Laxmi Organic Industries confirms no deviation in the utilization of IPO proceeds from the objectives stated in the prospectus dated March 18, 2021. A monitoring agency report from Axis Bank Limited for the quarter ended December 31, 2025, supports this confirmation. The company reaffirms adherence to the intended use of funds raised during its IPO, ensuring investor confidence and project alignment.
IPO Fund Usage Aligned with Objectives
Laxmi Organic Industries announces that the funds raised through its Initial Public Offering (IPO) have been utilized in accordance with the objectives outlined in the prospectus dated March 18, 2021. This announcement provides assurance to investors that the company has remained committed to its stated plans.
Monitoring Agency’s Assessment
Axis Bank Limited, serving as the monitoring agency, has issued a report for the quarter ended December 31, 2025, confirming the absence of any deviations in the use of IPO proceeds. This independent verification adds credibility to Laxmi Organic Industries’ claim of proper fund allocation.
Detailed Breakdown of IPO Proceeds Utilization
The gross proceeds from the fresh issue amounted to INR 5,000 million. After deducting offer expenses of INR 156.22 million, the net proceeds stood at INR 4,843.78 million. Here’s a breakdown of how these funds were allocated:
- Investment in YFCPL: INR 604.04 million
- Funding working capital requirements for YFCPL: INR 377.41 million
- Funding capital expenditure for expansion of SI Manufacturing Facility: INR 910.63 million
- Funding working capital requirements of the Company: INR 351.78 million
- Purchase of plant and machinery: INR 125.65 million
- Prepayment or repayment of borrowings: INR 1,729.25 million
- General Corporate Purposes: INR 745.02 million
As of the end of the quarter, the unutilized funds were deployed in fixed deposits with Axis Bank (INR 87.50 million) and HDFC (INR 157.70 million).
Source: BSE
