Bhandari Hosiery Exports Limited Revises Fund Utilization Plan Following Rights Issue Under-subscription
Bhandari Hosiery Exports Limited reported a revision in the utilization of funds raised during a Rights Issue concluded in March 2026, following a Board of Directors meeting. The Board decided to adjust the originally planned deployment of funds due to the under-subscription of the rights issue, which stood at 48.44%.The Chairman explained that the delay in fund release relative to the March 31, 2026 deadline limited the Company's ability to deploy the funds as initially scheduled. Up to March 31, 2026, the funds were utilized to the extent of Rs. 678 Lakhs. This expenditure covered the repayment of dues to MSME and pressing creditors, as well as suppliers of raw material, dyes, chemicals, consumables, and rights issue expenses.
The utilization of the remaining funds has been scheduled for completion on or before June 30, 2026. The revised plan specifically targets long term working capital and outstanding rights issue expenses. Consequently, the objects related to the payment of long term loans and the general corporate purpose have been deferred.
The revised allocation of funds is detailed in the following table:
| Objects to the Rights Issue/ Particulars | As captured in the LOF of Rights Issue | As captured in the LOF of Rights Issue | Revised due to under-subscription/ Utilisation period | Revised due to under-subscription/ Utilisation period |
|---|---|---|---|---|
| Reduction in long term bank loans | 687 Rs. lacs | To be utilised till 31.03.2026 | deferred | |
| Utilization towards long-term working capital requirement of our Company | 3400 Rs. lacs | To be utilised till 31.03.2026 | 671.66 Rs. lacs | Utilised till 31.03.2026 |
| 1606.75 | To be utilised till 30.06.2026 | |||
| General Corporate Purposes | 743 Rs. lacs | To be utilised till 31.03.2026 | deferred | |
| Right Issue Expenses | 100 Rs. lacs | To be utilised till 31.03.2026 | 6.95 Rs. lacs | Utilised till 31.03.2026 |
| Total | 4930 | 2378.41 |
The Board meeting concerning this matter commenced at 03:00 p.m. and concluded at 04:00 p.m.
BHANDARI Stock Price Movement
At the close of trade, shares of Bhandari Hosiery Exports Limited surged by 9.66% to settle at ₹3.18. The stock traded today within a range of ₹2.83 to ₹3.21, underpinned by strong trading interest with over 1.53 million shares exchanged.Source:
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