Desco Infratech Limited has successfully obtained shareholder approval for its proposal to redirect Rs 168.04 lakhs from IPO proceeds originally allocated for machinery purchase towards working capital requirements. The resolution was passed through a postal ballot process that concluded on December 18, 2025.

Voting Results and Approval

The company announced the voting results on December 20, 2025, confirming that shareholders have approved the variation in terms of objects of the Initial Public Offering (IPO). The postal ballot was conducted exclusively through remote e-voting facilitated by National Securities Depository Limited (NSDL).

Original Proposal Details

The reallocation proposal was initiated to optimize the utilization of IPO funds based on current business requirements. The management identified that existing machinery and technical capabilities were sufficient for current operational needs, while new project acquisitions required enhanced working capital support.

IPO Fund Utilization Overview

The approved change affects only the unutilized portion earmarked for machinery purchase. The complete IPO fund utilization structure shows strategic deployment across various corporate objectives.

Management Rationale

The Board of Directors justified this reallocation based on comprehensive operational assessment and strategic business requirements. Key factors included sufficient existing infrastructure, acquisition of new projects in existing and new geographical areas, and the need for adequate liquidity to execute high-value contracts without depending on external borrowings.

Regulatory Compliance

The postal ballot process was conducted in full compliance with Section 108 of the Companies Act, 2013, and Regulation 44 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. CS Mohan D Baid of MD Baid Associates served as the scrutinizer for the voting process, ensuring transparency and fairness in the proceedings.

With shareholder approval secured, Desco Infratech can now proceed with redirecting the unutilized IPO funds towards working capital, supporting its growth strategy and enhancing revenue generation capacity through timely project execution.

Desco Infratech Limited has disclosed receiving a regulatory fine from BSE Limited for compliance-related delays during the quarter ended September 2025. The company received the notice on November 20, 2025, and has since rectified the non-compliance while paying the prescribed penalty.

Regulatory Fine Details

BSE Limited imposed a fine on the company for alleged non-compliance under Regulation 13(3) of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015. The penalty was specifically related to the late submission of the Statement of Investor Complaints for the quarter ended September 2025.

Company Response and Rectification

Desco Infratech has characterized the delay as inadvertent and unintentional in nature. The company promptly paid the fine within the stipulated timeframe and completed all necessary compliance requirements. The fine amount was remitted to the designated Virtual Bank Account of BSE Limited as per the exchange's instructions.

The company clarified that the compliance delay has been fully rectified and confirmed there is no material impact on the company's financial, operational, or other business activities beyond the monetary penalty paid.

Board Review and Future Measures

In compliance with exchange directions, the matter was presented before the Board of Directors at their meeting held on December 16, 2025. The Board took note of the compliance issue and provided specific guidance to management regarding future preventive measures.

Key board recommendations include:

• Strengthening internal compliance monitoring systems
• Ensuring timely compliance with all statutory and regulatory requirements
• Implementing measures to avoid recurrence of such instances

Regulatory Framework

The fine was levied under the SEBI Master Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024, which prescribes penal actions for non-compliance with SEBI LODR Regulations. Under Regulation 13(3), companies are required to submit statements on shareholder complaints within prescribed periods, with penalties of ₹1,000.00 per day until compliance is achieved.

The company has made this disclosure in compliance with Regulation 30 of the SEBI LODR Regulations, 2015, ensuring transparency with stakeholders regarding regulatory matters and their resolution.