Laxmi Organic Industries Ltd has announced a significant update to its credit rating following communication from India Ratings and Research Private Limited dated December 23, 2025. The rating agency has revised its outlook on the company's bank loan facilities while maintaining its overall rating structure.

Rating Update Details

Key Changes and Implications

India Ratings has revised its outlook on the bank loan facilities of Laxmi Organic Industries to 'Negative' from 'Stable' while reaffirming the rating at IND AA/Negative/IND A1. The revision of the outlook to 'Negative' suggests that India Ratings perceives an increased risk in the company's credit profile, which could potentially impact future borrowing costs and financial flexibility.

Despite the outlook revision, the reaffirmation of the 'IND AA' rating indicates that the company maintains a high degree of safety regarding timely servicing of financial obligations with very low credit risk. Additionally, India Ratings has reaffirmed its IND A1 rating on the commercial paper of the company, demonstrating continued confidence in the company's short-term creditworthiness.

Regulatory Compliance and Disclosure

In compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Laxmi Organic Industries promptly disclosed this rating update to both BSE Limited and National Stock Exchange of India Limited on December 24, 2025. The company has provided stakeholders with access to the detailed rationale behind the rating action through India Ratings' press release.

The communication was signed by Aniket Hirpara, Company Secretary and Compliance Officer, ensuring proper authorization and transparency in the disclosure process. Investors and stakeholders can access the complete rationale for the rating revision through the provided link to India Ratings' official communication.

Laxmi Organic Industries Limited has announced that its shareholders have approved two special resolutions through a postal ballot voting process. The resolutions concern the reappointment of an Independent Director and a variation in the objects of the Qualified Institutional Placement (QIP) issue from October 2023.

Approved Resolutions

Reappointment of Independent Director

Shareholders approved the reappointment of Dr. Rajeev Vaidya as an Independent Director for a second three-year term.

Variation in QIP Objects

The resolution to vary the objects of the QIP issue from October 2023 was also approved.

Voting Process

The remote e-voting process concluded on December 6, 2023, with 424 members participating. Both resolutions passed with the requisite majority, demonstrating shareholder support for the company's proposals.

Director Reappointment

Dr. Rajeev Vaidya's reappointment as an Independent Director has been approved for a second term of three years. This continuation of his tenure will allow Laxmi Organic Industries to benefit from his experience in the chemicals industry, which includes his previous role as Global President at DuPont Building Innovations.

QIP Fund Reallocation

The approval for the variation in QIP objects relates to the company's proposal to reallocate ₹109.58 million of unutilized proceeds from its October 2023 QIP issue. These funds were originally allocated for the Mahape innovation center project but will now be redirected to the Dahej manufacturing facility project.

Conclusion

The passage of these resolutions demonstrates shareholder support for Laxmi Organic Industries' decisions regarding leadership and fund allocation. This development aligns with the company's previously stated goals of ensuring optimal utilization of QIP proceeds and accelerating project execution.