Chamunda Electrical Board Approves Changes to Initial Public Offering Proceeds Utilization
Chamunda Electrical Limited has approved a variation in the objects and terms of utilization concerning its Initial Public Offering (IPO) proceeds, following a meeting of its Board of Directors. The decision pertains to the allocation of funds as detailed in the IPO prospectus dated February 07, 2025.The Board reviewed the original plan for utilizing the issue proceeds, noting that a deviation occurred across the originally allocated capital expenditure category. The company has plans to utilize the resulting balance to meet further working capital requirements.
Financial details pertaining to the planned and utilized IPO funds are summarized in the table below:
| Sr no. | Original Objects of the Issue as per Prospectus | Amount Mentioned as per Prospectus (Lakhs) | Amount Actually Utilized (Lakhs) | Balance Unutilized (Lakhs) | Deviation, if any. | Amount Proposed to be Altered with Object (Lakhs) |
|---|---|---|---|---|---|---|
| 1 | Capital Expenditure (Purchase of New Testing Kit and Equipment's) | 12051 | 40.44 | 80.07 | 80.07 | Rs. 80.07 Lakhs will be utilized to meet the further working capital requirement of the Company. |
| 2 | Working Capital | 550.00 | 550.00 | - | - | - |
| 3 | Repayment of Term Loans and Cash Credit | 285.07 | 285.07 | - | - | - |
| 4 | General Corporate Purpose | 358.19 | 358.19 | - | - | - |
| 5 | Meet the Issue Expenses | 145.73 | 145.73 | - | - | - |
| Total | 1459.50 | 1379.43 | 80.07 | 80.07 | - |
The review confirmed that the company has utilized the full amount allotted for Working Capital, Repayment of Term Loans and Cash Credit, General Corporate Purpose, and Meeting Issue Expenses. The deviation identified in the Capital Expenditure category results in an unutilized balance of 80.07 Lakhs, which is proposed to be used for the company's further working capital requirement.
In connection with the approval process, the meeting also saw the appointment of S Lunkad & Associates as the scrutinizer to oversee the postal ballot process related to these objects.
CHAMUNDA Stock Price Movement
As of 2:03 PM, shares of Chamunda Electrical Limited trade flat at ₹43.35 in the live market, showing zero movement through today's trading session. The stock maintains its stability as SME transactions continue, keeping the equity firm amidst ongoing market activity.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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