Shlokka Dyes Limited has submitted its Statement of Deviation or Variation for the public issue proceeds for the half-year ended September 30, 2026. The company reported deviations in the utilization of funds for Capital Expense for Plant and Machinery and Working Capital Requirements compared to the initial prospectus disclosures. The total funds raised amounted to ₹57.79 crore. The Audit Committee has reviewed these explanations and noted that expenditures were for project implementation and operational needs.
Shlokka Dyes Discloses IPO Fund Use Deviations
Shlokka Dyes Limited has filed a Statement of Deviation or Variation concerning the utilization of funds raised from its public issue. The report covers the half-year period concluding on September 30, 2026. The company raised a total of ₹57.79 crore through its public issue.
Key Deviations Identified
The statement highlights specific areas where fund utilization deviated from the disclosures made in the Prospectus. For Capital Expense for Plant and Machinery, the actual utilization was ₹187.03 lakhs for vendor purchases and an additional ₹110.11 lakhs for civil work-related expenses, which were not explicitly detailed as separate categories in the original plan.
Furthermore, there was a significant variation in the allocation for Working Capital Requirements. The company utilized ₹3,625.44 lakhs for working capital, against an allocated amount of ₹2,800.00 lakhs, resulting in an excess utilization of ₹825.44 lakhs.
Audit Committee’s Review
The Audit Committee of Shlokka Dyes Limited has reviewed the explanations provided by the management for these deviations. The committee noted that the expenditures incurred were for the implementation and operationalization of the project and are considered part of the overall capital expenditure objective of the issue. The utilization was also attributed to business exigencies and operational requirements, with plans to regularize and align the utilization within the overall IPO proceeds in subsequent periods.
Source: BSE
