Indian Emulsifiers Limited has submitted its Statement of Deviation or Variation under Regulation 32 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, for the quarter ended March 31, 2026. The filing, dated May 14, 2026, confirms that there is no deviation or variation in the utilisation of proceeds from the company's Rights Issue, as against the objects stated in the Letter of Offer. The statement has been duly reviewed by the Audit Committee and is accompanied by the Monitoring Agency Report from Infomerics Valuation and Rating Limited.

Rights Issue Overview

Indian Emulsifiers Limited raised funds through a Rights Issue during the issue period of October 24, 2025 to November 21, 2025, with allotment completed on November 24, 2025. The issue comprised up to 61,11,111 fully paid-up equity shares of face value of Rs. 10 each, offered at a price of Rs. 80 per Rights Equity Share (including a premium of Rs. 70 per Rights Equity Share), in the ratio of one Rights Equity Share for every two fully paid-up equity shares held by eligible shareholders on the record date of October 10, 2025.

Fund Utilisation as at March 31, 2026

As of the quarter ended March 31, 2026, the company has utilised Rs. 46.01 crore out of the total Rs. 48.88 crore raised, leaving an unutilised balance of Rs. 2.87 crore. The unutilised funds are currently held in the company's current account (Account No. 002120110000663) with a market value of Rs. 2.87 crore as at the end of the quarter. The following table details the allocation and utilisation against each stated object:

Delay in Utilisation and Management Declaration

The Monitoring Agency Report notes that the unutilised amount of Rs. 2.87 crore is attributed to operational reasons. As per the Letter of Offer dated October 01, 2025 (Page 48), in the event that utilisation of net proceeds in a scheduled financial year is not completely met, the same shall be utilised in the subsequent financial year in accordance with applicable laws. Accordingly, management has declared via a management declaration dated May 11, 2026, that the delay in utilisation of Rs. 2.87 crore is due to operational reasons and that the same will be utilised before December 31, 2026. The completion date for all objects has been revised from FY2025-26 to December 31, 2026.

It is further noted that during the preparation of FY26 provisional financial statements in March, the CFO identified that certain payments were mistakenly debited from the rights issue account instead of the operational cash credit account due to a bank system-related error. The issue was promptly identified and reversed, and the company clarified that there was no intentional misuse of rights issue funds or any undue benefit derived. The incident was isolated in nature and occurred amidst a high volume of banking transactions.

Monitoring Agency and Audit Committee Observations

The Monitoring Agency, Infomerics Valuation and Rating Limited, has confirmed nil deviation from the objects and nil range of deviation in its report for the quarter ended March 31, 2026. The utilisation details have been verified by Dave & Dave, Chartered Accountants (FRN: 102163W), vide CA certificate dated May 08, 2026. The Audit Committee has reviewed the statement and offered no adverse comments, and the statutory auditors have similarly recorded no comments. All government and statutory approvals related to the objects have been obtained, including in-principle approval from NSE (SME Platform). No major deviations were observed over earlier monitoring agency reports, and no events affecting the viability of the stated objects were reported.

New Manufacturing Unit: Key Object Details

A significant portion of the Rights Issue proceeds is directed towards establishing a new manufacturing unit at Plot C-3, Lote Parshuram MIDC. The facility will support the company's expansion into specialty chemicals, including Esterification/Transesterification, Sulphation, Quaternization, Phosphorylation, Emulsification, Imidazoline, Wax Emulsion, Amphoteric, Polymerization, Poly-quaternary compounds, and a variety of specialty emulsifiers. The total construction area is 1118.20 Sq. Mtrs., with a construction cost of Rs. 5.94 crore as per the estimate provided by M/s. M.L. Kendre & Associates, Chartered Engineer. An additional Rs. 11.36 crore from net proceeds is earmarked for plant and machinery, civil works, and installation costs at the same facility.

Indian Emulsifiers Limited has filed an annual disclosure with the National Stock Exchange of India Ltd., confirming that its promoters, promoter group, and persons acting in concert (PACs) did not create any encumbrance on the company's shares during the financial year ended March 31, 2026. The disclosure was submitted on April 03, 2026, in compliance with the applicable SEBI regulations.

Regulatory Disclosure Details

The declaration was made pursuant to Regulation 31(4) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, and constitutes the annual disclosure required under Regulation 31(5) of the same regulations. The filing confirms that no encumbrance — direct or indirect — was placed on the shares of Indian Emulsifiers Limited by any member of the promoter group or PACs during the relevant period.

Key details of the disclosure are summarised below:

Declaration by Managing Director

The disclosure was signed and submitted by Yash Sunil Tikekar, Managing Director of Indian Emulsifiers Limited, on behalf of the promoters, promoter group, and PACs. The declaration was digitally authenticated on April 03, 2026, at 13:09:46 IST. Tikekar confirmed that neither he nor any other promoter, member of the promoter group, or PAC holding shares in the company created any encumbrance on those shares during the financial year ended March 31, 2026.

This annual filing serves as a transparency measure mandated by SEBI to ensure that investors and market participants are informed of any pledging or encumbrance activity involving promoter shareholding in listed companies.