Ashnisha Industries Limited's rights issue proceeds utilization has been monitored by CARE Ratings Limited for the quarter ended December 31, 2025. The monitoring agency report reveals significant deployment of funds across various strategic objectives, with the company utilizing ₹34.17 crore out of the total ₹49.24 crore raised through the rights issue.

Rights Issue Overview

The company successfully completed its rights issue during October-November 2025, raising ₹49.24 crore through the allotment of 164,125,000 fully paid-up equity shares at ₹3 per share. The issue was offered to eligible shareholders in the ratio of 13 rights equity shares for every 8 fully paid-up equity shares held on the record date of October 6, 2025.

Proceeds Utilization Analysis

During Q3FY26, the company deployed funds across four key areas as outlined in the offer document. The monitoring agency confirmed that all utilization was in line with stated objectives without any material deviations.

Working Capital Deployment

The largest utilization was towards working capital requirements, with ₹22.17 crore deployed primarily for advance payments made for goods. This represents a substantial portion of the allocated funds and reflects the company's strategy to secure favorable pricing and ensure supply continuity in prevailing market conditions.

Solar Power Project Progress

For the solar power project, ₹7.67 crore was utilized during the quarter, comprising ₹7.50 crore towards advance payment for solar equipment and ₹0.17 crore for site development. The project aims to establish a 1.5 MW AC capacity (1.75 MW DC capacity) solar power plant, though approvals are still under process.

General Corporate Purposes Breakdown

The company utilized ₹3.79 crore for general corporate purposes during Q3FY26, distributed across various strategic initiatives:

Monitoring Agency Observations

CARE Ratings highlighted several key observations in their monitoring report. The solar power project cost of ₹15 crore for 1.5 MW capacity appears higher compared to industry standards, potentially affecting expected returns. Additionally, the company's advance payments for goods totaling ₹20.50 crore represent approximately 1.5 times the average sales of the last three years.

Promoter Shareholding Impact

A notable development was the reduction in promoter shareholding from 17.35% as of September 30, 2025, to 6.61% as of December 31, 2025. This occurred as promoters and the promoter group did not subscribe to shares offered in the rights issue, which the company stated was intended to enhance public participation.

Fund Management

The unutilized proceeds of ₹15.07 crore are currently maintained in a current account with ICICI Bank. The monitoring agency confirmed that funds were transferred from the escrow account to the current account as utilization occurred, with proper documentation maintained for tracking purposes.

The monitoring agency report confirms no deviations from the stated objects and validates that the company is progressing according to its disclosed plans, with statutory approvals for the solar project currently under process.

Ashnisha Industries Limited has issued a comprehensive postal ballot notice dated February 2, 2026, following its board meeting held on January 30, 2026. The notice outlines two special resolutions requiring shareholder approval through remote e-voting process, demonstrating the company's commitment to transparent corporate governance.

Postal Ballot Resolutions and Timeline

The postal ballot addresses critical corporate governance matters that require shareholder approval. The company has established a structured timeline for the voting process to ensure maximum participation from eligible shareholders.

Director Appointment Resolution

The first special resolution seeks regularization of Mr. Kunjan Nathabhai Rathod (DIN: 10964701) as Non-Executive Independent Director. He was initially appointed as Additional Director on December 13, 2025, and requires shareholder approval for a five-year term ending December 12, 2030.

Memorandum of Association Amendment

The second resolution proposes alteration in the company's MOA object clause to include commodities trading business. The new clause will enable the company to engage in trading, buying, selling, importing, exporting, and investing in various commodities including metals, minerals, energy products, and agricultural commodities.

The proposed addition aims to diversify business activities and capitalize on opportunities in the commodities market, allowing transactions in physical form and through derivative instruments both domestically and internationally.

E-Voting Process and Compliance

The company has engaged Central Depository Services (India) Limited (CDSL) for facilitating the e-voting process. Shareholders can vote through their demat accounts with CDSL/NSDL or directly through CDSL's e-voting platform. The voting is restricted to electronic mode only, with no physical postal ballot forms being dispatched.

The postal ballot notice complies with Section 108 and 110 of the Companies Act, 2013, and SEBI Listing Regulations. Results will be communicated to BSE Limited and uploaded on the company's website at www.ashnisha.in following the scrutinizer's report submission.