SSMD Agrotech India Limited has submitted its Statement of Deviation or Variation and Utilization Certificate for funds raised through its Initial Public Offer (IPO). For the half-year ended September 30, 2026, the company reported that funds were utilized for working capital, repayment of borrowings, setting up new D2C Dark Store facilities, machinery purchase for a Namkeen Plant, and general corporate purposes. While there’s no deviation in utilization from the prospectus, a variation in the implementation schedule for certain objects is noted due to business and operational reasons.
IPO Fund Utilization Update
SSMD Agrotech India Limited has provided a comprehensive statement detailing the utilization of funds raised through its Initial Public Offer (IPO) for the half-year period ending September 30, 2026. This report is in accordance with Regulation 32 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Key Utilization Areas
The funds raised have been allocated across several key areas as per the Offer Document:
- Funding of Working Capital Requirements: An amount of ₹13.1000 Crores was allocated, with ₹7.3522 Crores utilized as of March 31, 2026, and an additional ₹2.0435 Crores utilized in the current half-year, bringing the cumulative utilization to ₹9.3957 Crores.
- Repayment of Portion of Certain Borrowings: Out of an allocation of ₹6.8333 Crores, ₹5.3000 Crores were utilized by March 31, 2026. In the subsequent period, an additional ₹0.3055 Crores were used, totaling ₹5.6055 Crores utilized.
- Capital Expenditure for Setting up New D2C Dark Store Factories: The allocated amount was ₹2.0336 Crores, with ₹0.0516 Crores utilized by March 31, 2026. No further utilization occurred during this half-year, keeping the cumulative utilization at ₹0.0516 Crores.
- Capital Expenditure for Purchase of Machinery for Namkeen Plant: With an allocation of ₹0.9675 Crores, ₹0.0959 Crores were utilized by March 31, 2026. An additional ₹0.0941 Crores were utilized, bringing the total to ₹0.1900 Crores.
- General Corporate Purpose: An allocation of ₹5.1000 Crores has seen a cumulative utilization of ₹3.7472 Crores, with ₹3.3412 Crores utilized by March 31, 2026, and an additional ₹0.4060 Crores used in the current period.
- Issue Related Expenses: The total allocation was ₹6.0513 Crores, with ₹5.9100 Crores utilized by March 31, 2026. No further utilization has occurred, keeping the cumulative utilization at ₹5.9100 Crores.
Variations and Proposed Actions
The company stated that there is no deviation in the utilization of funds from the objects stated in the Prospectus. However, a variation in the implementation schedule for certain objects has occurred due to business and operational reasons. For instance, the implementation of D2C Dark Store facilities is progressing at a slower pace than anticipated due to strategy, location identification, and feasibility assessments. Similarly, the timing of expenditure for the Namkeen Plant machinery is dependent on specifications and procurement planning.
The company plans to continue utilizing funds for working capital, repayment of borrowings, and general corporate purposes in accordance with the Prospectus. The Board of Directors has reviewed this statement.
Source: BSE
