Bhandari Hosiery Exports Files Q4FY26 Monitoring Agency Report for Rights Issue Proceeds
Bhandari Hosiery Exports Limited submitted its Q4FY26 Monitoring Agency Report through Crisil Ratings Limited, covering the utilization of Rights Issue proceeds for the quarter ended March 31, 2026. Against gross proceeds of Rs 2,378.41 lakh (revised from Rs 4,930.00 lakh due to undersubscription), the company utilized Rs 678.61 lakh—comprising Rs 671.66 lakh for long-term working capital and Rs 6.95 lakh for issue expenses—with Rs 1,699.80 lakh remaining in a monitored Axis Bank account. The Board approved utilizing the remaining funds on or before June 30, 2026, citing a delay caused by the late receipt of proceeds on March 27, 2026.
*this image is generated using AI for illustrative purposes only.
Bhandari Hosiery Exports Limited has disclosed the outcome of the Monitoring Agency Report regarding the utilization of proceeds from its Rights Issue for the quarter ended March 31, 2026. The report, approved by the Audit Committee and the Board of Directors in their meeting held on May 6, 2026, was submitted to the stock exchanges on May 7, 2026. The Rights Issue, which opened on March 6, 2026, and closed on March 20, 2026, was managed by Crisil Ratings Limited as the Monitoring Agency.
Issue Size and Fund Allocation
The company initially aimed to raise fresh equity funds amounting to Rs 4,930.00 lakh. However, due to undersubscription, the gross proceeds were revised to Rs 2,378.41 lakh. Following the deduction of issue expenses amounting to Rs 100.00 lakh, the net proceeds stood at Rs 2,278.41 lakh. Consequently, the Board of Directors revised the allocation of funds, deferring the objects related to the reduction in long-term loans and General Corporate Purpose (GCP). The entire net proceeds were directed towards the company's long-term working capital requirements. The table below summarises the revised cost allocation across all objects of the issue:
| Object | Original Cost (Rs in lakh) | Revised Cost (Rs in lakh) |
|---|---|---|
| Reduction in long-term loans | 687.00 | 0.00 |
| Long-term working capital requirement | 3,400.00 | 2,278.41 |
| General Corporate Purpose (GCP) | 743.00 | 0.00 |
| Net Proceeds | 4,830.00 | 2,278.41 |
| Rights issue expenses | 100.00 | 100.00 |
| Total | 4,930.00 | 2,378.41 |
Utilization of Proceeds
During the quarter ended March 31, 2026, the company utilized a total of Rs 678.61 lakh from the gross proceeds. The deployment of funds was categorized as follows:
| Particulars | Amount Utilized (Rs in lakh) |
|---|---|
| Long-term working capital requirement | 671.66 |
| Issue expenses | 6.95 |
| Total Utilized | 678.61 |
The funds for working capital were used for the procurement of raw materials, while issue expenses were directed towards fees paid to BRLMs. As of the end of the quarter, the total unutilized gross proceeds amounted to Rs 1,699.80 lakh, which are maintained in a Monitoring Account with Axis Bank.
Implementation Status and Future Plans
The report highlights a delay in the implementation of the long-term working capital object. The company had estimated utilizing the allocated sum by Fiscal 2026 but had only utilized Rs 671.66 lakh by the end of the fiscal year. This delay is attributed to the receipt of gross proceeds on March 27, 2026, leaving only three days for utilization before the quarter end. The Board of Directors, via a resolution dated April 6, 2026, has approved the utilization of the remaining proceeds on or before June 30, 2026, to fulfill the long-term working capital requirements.
Historical Stock Returns for Bhandari Hosiery Exports
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.62% | -4.49% | -2.74% | -15.83% | -33.82% | +29.67% |
Will Bhandari Hosiery Exports Limited successfully deploy the remaining Rs 1,699.80 lakh in unutilized proceeds by the June 30, 2026 deadline, and what happens if the company faces another shortfall?
How might the undersubscription of nearly 52% of the targeted Rights Issue amount impact the company's ability to reduce its long-term debt and fund general corporate purposes in the near future?
Could the deferral of long-term loan reduction plans affect Bhandari Hosiery's credit profile and borrowing costs, potentially influencing future fundraising efforts?
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