Chamunda Electricals board alters IPO fund use for working capital

Chamunda Electrical Limited's board has approved a variation in the utilization of its Initial Public Offering (IPO) proceeds to address working capital needs. The meeting, held on June 24, 2026, sanctioned the reallocation of ₹80.07 lakhs from capital expenditure to general working capital requirements. This decision aims to optimize the deployment of funds raised through the IPO, subject to shareholder approval via a special resolution through a postal ballot.

The variation specifically targets the unutilized balance from the capital expenditure head, which was initially intended for the purchase of new testing kits and equipment. According to the prospectus dated February 07, 2025, the total issue size was ₹1459.50 lakhs. The board determined that the remaining funds under this head would be more effectively utilized to support the company's operational liquidity.

Utilization of IPO Proceeds

The following table details the original allocation, actual utilization, and the proposed variation in the deployment of the issue proceeds:

Sr no.	Original objects of the issue	Amount mentioned (₹ in Lakhs)	Amount utilized (₹ in Lakhs)	Balance unutilized (₹ in Lakhs)	Proposed variation
1	Capital Expenditure	120.51	40.44	80.07	Utilized for working capital
2	Working Capital	550.00	550.00	-	-
3	Repayment of Term Loans and Cash Credit	285.07	285.07	-	-
4	General Corporate Purpose	358.19	358.19	-	-
5	Meet the Issue Expenses	145.73	145.73	-	-
Total		1459.50	1379.43	80.07	-

Shareholder Approval Process

To implement this variation, the company will seek approval from its members through a postal ballot. The board has approved the notice for the postal ballot, which will seek a special resolution to authorize the change in the objects of the issue. Additionally, S S Lunkad & Associates has been appointed as the scrutinizer to oversee the fairness and transparency of the voting process.

The filing was submitted to the National Stock Exchange of India in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The reallocation of funds is expected to provide the company with greater flexibility in managing its operational expenses.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+2.77%	+5.17%	-6.77%	-19.36%	-0.70%	-35.79%

Chamunda Electrical Limited disclosed that its promoters have not created any encumbrances on the company's shares during the financial year ended March 31, 2026. The declaration was submitted by Chirag Natvarlal Patel on behalf of the promoter, promoter group, and persons acting in concert (PAC) in compliance with Regulation 31(4) of the SEBI (Substantial Acquisition of Shares & Takeovers) Regulations, 2011.

The filing confirms that no shares were pledged directly or indirectly, other than those previously disclosed. The promoter group collectively holds 73.55% of the total share capital or voting rights of the company as of March 31, 2026.

Promoter Holding Details

The following table details the shareholding of the promoters and PAC members:

Name(s) of the Promoter(s) and PAC with him	No of shares	% w.r.t. total share/ voting capital wherever applicable
Natvarbhai Karshanbhai Rathod	18,29,460	16.62
Babubhai Karsanbhai Patel	30,000	0.27
Chiragkumar Natvarlal Patel	43,42,944	39.46
Shantaben Natvarbhai Rathod	10,78,144	9.8
Purnikaben Chiragbhai Patel	7,33,980	6.67
Zeel Chiragkumar Patel	79,033	0.72
TOTAL	80,93,561	73.55

Chirag Natvarlal Patel, a key promoter, holds the largest individual stake within the group at 39.46%. The disclosure was addressed to the company and the National Stock Exchange of India Ltd. on April 6, 2026.