Laxmi Organic Industries Limited has filed a regulatory intimation confirming no deviation in the utilization of Qualified Institutions Placement (QIP) proceeds for the quarter ended December 31, 2025. The company submitted its compliance report to BSE and NSE on February 4, 2026, along with the monitoring agency report issued by India Ratings & Research Private Limited.

QIP Issue Details and Current Status

The company's QIP was conducted from October 5, 2023, to October 10, 2023, raising INR 2,591.21 million through the issuance of 9,625,579 equity shares at INR 269.20 per share. The monitoring agency report confirms that all utilization remains aligned with the objects stated in the placement document dated October 10, 2023.

Project-wise Utilization and Reallocation

The company has made significant progress across its funded projects, with notable completion of the Mahape innovation center. The monitoring report reveals a strategic reallocation of funds following project completion and cost optimization.

Mahape Project Completion and Fund Reallocation

The Mahape innovation center project achieved completion with cost savings of INR 109.58 million against the original estimate. The 2,100 square meter facility is designed to scale R&D efforts in line with growing manufacturing sites and product pipeline. Following project completion, the Board approved reallocation of the saved amount to the Dahej project on October 29, 2025, subsequently ratified by shareholders through postal ballot on December 6, 2025.

Dahej Manufacturing Facility Progress

The Dahej manufacturing facility project continues as an ongoing initiative, with INR 1,511.42 million utilized out of the revised allocation of INR 1,729.24 million. The facility, spread across 84.71 acres in Bharuch, Gujarat, represents the company's expansion strategy to add manufacturing capacity and provide geographic diversification from the existing Mahad facilities.

Deployment of Unutilized Proceeds

The company has deployed the unutilized QIP proceeds of INR 217.82 million in liquid investments to optimize returns while maintaining liquidity for ongoing project requirements.

Note: Total includes unutilized proceeds of INR 217.82 million plus returns of INR 6.75 million

Regulatory Compliance and Monitoring

The monitoring agency report confirms that all statutory requirements under SEBI regulations have been met, with no material deviations observed. The company has obtained necessary government approvals for current project stages, with the Dahej project timeline extended to June 30, 2026, following Board and shareholder approvals. The comprehensive monitoring framework ensures transparent utilization of investor funds in accordance with disclosed objectives.

Laxmi Organic Industries Limited has successfully maintained complete compliance with its IPO proceeds utilization plan, reporting zero deviation for the quarter ended December 31, 2025. The chemical industry company filed its monitoring agency report under Regulation 32 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, confirming adherence to all objects stated in its March 18, 2021 prospectus.

Monitoring Agency Confirms Zero Deviation

Axis Bank Limited, serving as the monitoring agent, issued a comprehensive report validating the company's IPO proceeds deployment. The monitoring agency confirmed no deviation from the original objects and reported a 0% deviation range across all categories.

IPO Proceeds Structure and Utilization

The company's March 2021 IPO raised ₹5,000.00 million through fresh issue, with net proceeds of ₹4,843.78 million after deducting offer expenses of ₹156.22 million. The original offer expenses estimate showed savings of ₹43.58 million, which was allocated to general corporate purposes.

Strategic Deployment Across Multiple Objects

The proceeds utilization spans eight key areas, with significant allocations toward debt repayment (₹1,729.25 million) and facility expansion (₹910.63 million). The company has completed utilization for most objects, with only the YFCPL working capital investment showing partial deployment.

Key facility locations include:

• Lote, Maharashtra: YFCPL capital expenditure and working capital projects
• Mahad, Maharashtra: SI Manufacturing Facility expansion and infrastructure development

Unutilized Funds Management

The remaining ₹245.27 million in unutilized proceeds has been prudently deployed in fixed deposits to ensure capital preservation while generating returns.

Compliance and Governance Excellence

The monitoring report highlights the company's strong governance framework, with all certifications provided by chartered accountants and no unfavorable events affecting object viability. The company has obtained all necessary government and statutory approvals for its projects, demonstrating comprehensive regulatory compliance.

This zero-deviation report reinforces Laxmi Organic Industries' commitment to transparent capital deployment and adherence to investor commitments made during its public offering. The systematic utilization of IPO proceeds across strategic growth initiatives positions the company well for its expansion objectives in the chemical industry.