Sihora Industries alters IPO objects to fund new machinery
Sihora Industries Limited's board approved the utilization of ₹63.74 lakh in unutilized IPO proceeds to purchase new machinery, including crochet, coiling, and stitching machines. The decision follows the cancellation of previous equipment acquisitions due to increased costs and viability issues. Shareholders will vote on the alteration of the public issue objects via a special resolution through postal ballot.
*this image is generated using AI for illustrative purposes only.
Sihora Industries Limited's board has approved the utilization of ₹63.74 lakh in unutilized IPO proceeds to purchase new machinery, aiming to expand its product portfolio to include zipper chains and finished zippers. The decision, taken on July 15, 2026, involves altering the terms of the objects of the public issue originally stated in the prospectus dated October 06, 2025. The company cited factors such as substantial increases in acquisition costs, foreign exchange fluctuations, and limited commercial viability for cancelling previous equipment purchases, including a Needle Loom Regular Jacquard Machine and a Power Pack Diesel Generator.
The board specifically approved the acquisition of four Crochet Knitted Machines, twelve Coiling Machines, and twelve Stitching Machines. This strategic shift is intended to enable value-added manufacturing activities. Any additional expenditure required for these acquisitions will be funded from the company's internal accruals. The proposal requires shareholder approval via a special resolution, for which the board has approved a draft notice of postal ballot.
The utilization of funds addresses specific unutilized amounts from the issue proceeds. A total of ₹77.08 lakh remained unutilized, of which ₹16.57 lakh is allocated for existing commitments, leaving a balance of ₹60.50 lakh. Additionally, ₹9.24 lakh remained unutilized for market maker payments, with ₹6.00 lakh proposed for future payments and ₹3.24 lakh remaining as a balance. The total unutilized amount available for the new machinery is ₹63.74 lakh.
The board also appointed National Securities Depository Limited (NSDL) as the Remote E-Voting Agency for the postal ballot process. CS Hardikkumar Jetani, a Practicing Company Secretary, was appointed as the Scrutinizer to ensure the e-voting process is conducted fairly and transparently. The meeting was commenced at 04.00 P.M. and concluded at 04.30 P.M. on July 15, 2026.
Utilization of Unutilized IPO Proceeds
The following table details the allocation of the unutilized issue proceeds:
| Category | Unutilized Amount (₹) | Proposed Utilization (₹) | Remaining Balance (₹) |
|---|---|---|---|
| General Issue Proceeds | 77.08 lakh | 16.57 lakh | 60.50 lakh |
| Market Maker Payments | 9.24 lakh | 6.00 lakh | 3.24 lakh |
| Total | 86.32 lakh | 22.57 lakh | 63.74 lakh |
Key Approvals
- Alteration of Objects: Approved to change the terms of the public issue objects stated in the prospectus dated October 06, 2025.
- Machinery Purchase: Approved the purchase of 4 Crochet Knitted Machines, 12 Coiling Machines, and 12 Stitching Machines.
- Postal Ballot: Appointed NSDL as Remote E-Voting Agency and CS Hardikkumar Jetani as Scrutinizer for the postal ballot process.
Historical Stock Returns for Sihora Industries
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| 0.0% | -0.71% | +1.70% | +1.00% | -11.91% | -11.91% |
How will the shift to manufacturing zipper chains and finished zippers impact Sihora Industries' competitive positioning in the current market?
What is the expected timeline for the installation and commissioning of the newly approved machinery?
How will the company manage the additional expenditure funded through internal accruals, and will this affect future dividend payouts?
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