Luxury Time Limited has initiated a postal ballot to seek shareholder approval for a variation in the objects of its Initial Public Offering (IPO). The company aims to redirect net offer proceeds toward strategic investments and direct retail expansion.

The remote e-voting process is scheduled to commence on August 27, 2026, at 9:00 am and conclude on September 25, 2026, at 5:00 pm. Shareholders holding securities as on the cut-off date of August 21, 2026, are eligible to vote. The results will be declared on or before September 28, 2026.

Proposed Variation in IPO Objects

The company proposes to utilize approximately ₹1,332.00 lakh (₹13.32 crore) from the IPO proceeds. This amount represents the total available funds, which include the original net offer proceeds of ₹1,325.13 lakh plus additional funds arising from lower-than-estimated issue expenses and reimbursements from promoter selling shareholders.

As per the Monitoring Agency Report for the quarter ended June 30, 2026, no amount had been utilized towards the original objects. The proposed revised allocation shifts focus from working capital to strategic growth initiatives.

Strategic Rationale and Implementation

The board cites commercial flexibility as the primary driver for this variation. While maintaining its existing wholesale relationship with TAG Heuer (part of the LVMH Group), the company notes that prospective brands may prefer operating through separate entities. Establishing wholly owned subsidiaries, associate companies, or joint ventures allows for ring-fenced governance, brand-specific confidentiality, and dedicated management structures.

Approximately ₹300.00 lakh is allocated for setting up four retail stores directly under Luxury Time Limited. This includes roughly ₹100.00 lakh for capital expenditure such as fit-outs and infrastructure, and ₹200.00 lakh for pre-opening and operating expenses including lease rentals and staffing.

The remaining ₹1,000.00 lakh is designated for strategic investments or acquisitions. These transactions may involve incorporating new entities, subscribing to equity, or acquiring businesses that will become wholly owned subsidiaries, associates, or joint ventures. The deployment aims to expand the company’s portfolio in luxury watch retail, distribution, and after-sales services.

What the Numbers Show

The complete reallocation of unutilized IPO proceeds signals a pivot from organic working capital support to inorganic growth via M&A and structured retail expansion. With zero utilization reported as of June 30, 2026, the entire corpus remains available for immediate deployment towards these revised objectives by March 31, 2028.

Regulatory Compliance and Exit Offer

The special resolution requires approval under Sections 13(8) and 27 of the Companies Act, 2013, and relevant SEBI regulations. If an exit offer becomes applicable under Section 27(2) of the Act or SEBI ICDR Regulations, promoters Mr. Ashok Goel and Mr. Pawan Chohan have been authorized to provide the same to dissenting shareholders.

M/s KPS & Co., Chartered Accountants, has been appointed as the scrutinizer for the postal ballot process. The unutilized proceeds will continue to be held in the monitoring account or invested in fixed deposits pending deployment.

Luxury Time Limited reported a significant improvement in profitability for the financial year ended March 31, 2026, with consolidated net profit rising 50% to ₹5.53 crore and standalone profit increasing 67.99% to ₹5.62 crore. This performance was driven by a substantial expansion in operating margins and disciplined cost management, even as revenue from operations remained broadly stable at ₹60 crore on a consolidated basis.

The company's earnings before interest, tax, depreciation and amortisation (EBITDA) jumped 46.87% to ₹7.50 crore, pushing the EBITDA margin up by 442 basis points to 13.92%. Total expenses contracted to ₹47.36 crore from ₹49.11 lakh in the previous year, aided by lower finance costs which fell to ₹1.45 crore from ₹2.32 crore. The company closed the year with nil borrowings, strengthening its balance sheet.

What the Numbers Show

While revenue from operations showed marginal growth of 0.30% to ₹53.91 crore on a standalone basis, the quality of earnings improved materially. Profit before tax increased 49.53% to ₹7.26 crore, reflecting better absorption of fixed overheads and cost optimisation. Additionally, service revenue recorded significant growth, contributing 10.37% to total revenue compared to 3.35% in the previous year, indicating a strategic shift towards higher-margin activities.

During the year, Luxury Time Limited successfully completed its initial public offering, listing its equity shares on the SME Platform of BSE Limited in December 2025. The issue comprised a fresh issue and an offer for sale, aggregating to ₹18.74 crore. The board has not recommended any dividend for the financial year, opting to retain resources for future business expansion and working capital requirements.