Laxmi Organic Industries Limited has confirmed that there has been no deviation in the utilization of its Qualified Institutions Placement (QIP) proceeds from the objectives outlined in the placement document dated October 10, 2023. This assurance comes with an enclosed Monitoring Agency Report for the quarter ended June 30, 2026, issued by India Ratings & Research Private Limited.
Positive Assurance on Fund Utilization
Laxmi Organic Industries Limited has officially confirmed that the proceeds raised through its Qualified Institutions Placement (QIP) have been utilized precisely as per the objects stated in the placement document. This confirmation covers the period up to June 30, 2026.
Monitoring Agency Report Underlines Compliance
The company’s assertion is supported by the Monitoring Agency Report, prepared by India Ratings & Research Private Limited, acting as the appointed Monitoring Agent. This report specifically addresses the utilization of QIP proceeds for the quarter ending June 30, 2026. The agency’s findings indicate a complete adherence to the planned deployment of funds, reassuring stakeholders of the company’s financial discipline and transparent operations.
Details of QIP and Project Progress
The QIP, which took place from October 5, 2023, to October 10, 2023, raised INR 2,591.21 Million through the issuance of 9,625,579 Equity Shares. The funds were earmarked for specific capital expenditure requirements, including setting up a new innovation centre at Mahape and expanding manufacturing facilities at Dahej, along with general corporate purposes and issue expenses. The monitoring report indicates that the Mahape innovation centre project has been completed and inaugurated. The Dahej facility’s first phase has also been successfully commissioned. While there was a delay in the Dahej project timeline, the board approved an extension, and the facility is now operational.
No Deviation in Project Objectives
The Monitoring Agency Report explicitly states ‘No Deviation from the objects’. This conclusion is based on management undertakings and a certificate from the statutory auditor, Deloitte Haskins & Sells LLP. The report details that the Mahape project was completed within budget, with savings reallocated to the Dahej project. The overall utilization of funds aligns with the objectives set forth in the offer document and subsequent shareholder approvals.
Source: BSE
