Sihora Industries Ltd Board Approves IPO Fund Utilization, Altering Corporate Objects
Sihora Industries Ltd has announced key decisions regarding the utilization of unutilized proceeds from its public issue, confirming several purchases and revising project scope following a recent board meeting. The company also greenlit necessary alterations to the terms of its objects as stated in the Prospectus dated October 06, 2025.The Audit Committee and the Board of Directors approved the utilization of unutilized IPO funds for strategic acquisitions aimed at expanding the company’s product portfolio. The planned purchases include four Crochet Knitted Machines, twelve Coiling Machines, and twelve Stitching Machines. This acquisition is set to enable Sihora Industries to undertake value-added manufacturing activities and expand its offerings to zipper chains and finished zippers.
The Board also reviewed the allocation of proceeds from the public issue, which totaled ₹ 63.74 Lakh remaining unutilized as of the meeting date. The utilization plans detailed include:
| Unutilized IPO Proceeds | Planned Expenditure | Purpose/Recipient | Remaining Balance |
|---|---|---|---|
| ₹ 77.08 lakh | ₹ 10.77 lakh | Purchase of two Crochet Knitting Machines | ₹ 60.50 lakh |
| ₹ 5.80 lakh | Miscellaneous expenses (import/clearance) to Vaibhav International | ||
| ₹ 9.24 lakh | ₹ 6.00 lakh | Payment to Market Maker for the next two financial years | ₹ 3.24 lakh |
The Board meeting also addressed several large-scale planned purchases that were subsequently dropped due to market conditions and operational review. The items set aside included the Needle Loom Regular Jacquard Machine, Fully Automatic Elastic Tape Winding and Cutting Machine, Rubber Covering Machine, and a Power Pack Diesel Generator. These decisions followed factors such as substantial increases in acquisition costs, foreign exchange fluctuations, limited commercial viability, and improvements in local power infrastructure.
In line with the strategic changes, the Board has proposed seeking approval from its members by way of Special Resolution for the alteration in the terms of Objects of the Issue Proceeds raised via the Prospectus dated October 06, 2025.
Additionally, the company appointed National Securities Depository Limited (NSDL) as the Remote E-Voting Agency and designated CS Hardikkumar Jetani, a Practicing Company Secretary, as the Scrutinizer for the remote e-voting process related to the Postal Ballot.
Stock Price Movement
Sihora Industries Ltd finished the day lower on Thursday, settling at ₹58.58, marking a 0.71% decline. The shares saw activity ranging from an intraday low of ₹58.58 to a high of ₹59.00 during the trading session.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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