Ind Swift Laboratories Limited (ISLL) has successfully obtained trading approval from both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) for 81,24,698 equity shares, each with a face value of ₹10. This development marks a significant milestone in the company's recent amalgamation process.

Key Details of the Approval

Background of the Amalgamation

The newly approved shares were issued as part of the scheme of arrangement for the amalgamation of Ind-Swift Limited (the transferor company) with Ind-Swift Laboratories Limited (the transferee company). This corporate action was executed under the provisions of Sections 230-232 of the Companies Act, 2013.

Impact on Shareholders

The trading approval ensures that the eligible shareholders of the erstwhile Ind-Swift Limited, who received these shares as part of the amalgamation scheme, can now trade them on both the BSE and NSE platforms. This liquidity is crucial for shareholders who may wish to adjust their holdings or realize the value of their newly acquired shares.

Market Implications

The listing and admission to trading of these additional shares may have implications for the company's market capitalization and potentially its liquidity. Investors and market participants will be watching how this influx of new shares affects the stock's trading patterns and valuation metrics.

Conclusion

This development represents the culmination of Ind-Swift Laboratories' amalgamation process, providing clarity and tradability for the shares issued as part of the corporate restructuring. As the market absorbs this information, it will be important for investors to monitor any changes in the company's financial structure and market performance resulting from this significant corporate action.

Ind Swift Laboratories Limited (ISLL) has reported significant deviations in the utilization of funds raised through its Rs. 314.60 crore preferential issue, according to a monitoring agency report by Care Ratings Limited for the quarter ended September 30, 2025.

Key Findings

The monitoring agency identified a 14.37% deviation from the stated objectives of the preferential issue. The report highlighted two main areas of concern:

1. Unauthorized Reimbursement: The company claimed reimbursement of Rs. 45.21 crore towards expansion of business related to the previous quarter. However, this reimbursement was not allowed as per the objects of the preferential issue.

2. Third-Party Investment: ISLL invested Rs. 64.09 crore from the issue proceeds in Khandelwal Finance Private Ltd. (KFPL), a registered NBFC and a third-party entity.

Fund Utilization Details

The following table summarizes the fund utilization as reported:

Company's Response

In response to the monitoring agency's findings, Ind-Swift Laboratories provided the following explanations:

1. The company cited the merger with group company Ind-Swift Limited, approved by NCLT Chandigarh on July 17, 2025, as the reason for the reimbursement. ISLL stated that post-merger, it has accounted for capital expenditure done for the group company towards the utilization of proceeds for approved purposes.

2. Regarding the investment in KFPL, the company explained that it was made in secured Optionally Convertible Redeemable Preference Shares bearing an interest rate of 8.25% to achieve better returns on spare funds.

Monitoring Agency's Concerns

Care Ratings expressed concerns about the commingling of funds, which limited their ability to directly ascertain the utilization of the issue proceeds. The agency noted that the company had transferred majority of the funds from its monitoring account to multiple current accounts or overdraft accounts before payment during Q2FY26.

Implications and Next Steps

The reported deviations raise questions about the company's adherence to the stated objectives of the preferential issue. Shareholders and regulatory bodies may seek further clarification on these fund utilization practices.

Ind-Swift Laboratories will need to address the concerns raised in the monitoring report and may face increased scrutiny from investors and regulators. The company's future financial decisions and corporate governance practices are likely to be closely watched in light of these findings.