Pajson Agro India Limited has filed a statement of deviation or variation in the utilisation of proceeds raised through its Initial Public Offering (IPO), pursuant to Regulation 32 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Alongside this, CARE Ratings Limited, the appointed Monitoring Agency (MA), has submitted its Monitoring Agency Report for the quarter ended March 31, 2026. The filing was submitted to BSE Limited on May 07, 2026, by Compliance Officer and Company Secretary Roopal Saxena.

IPO and Issuer Details

The company raised funds through a Public Issue-SME IPO, with allotment completed on December 16, 2025. The key parameters of the fund raise and issuer profile are summarised below:

Deviation in Use of IPO Proceeds

A deviation was identified in the utilisation of IPO proceeds. The Board reduced the allocation towards issue expenses by ₹1.96 crore, correspondingly increasing the allocation to General Corporate Purposes (GCP). This change was approved by shareholders on August 26, 2025. The Audit Committee reviewed and noted that the issue expenses of ₹8.98 crore mentioned in the offer document were on an approximate basis, and the actual expense incurred was ₹7.02 crore. The remaining ₹1.96 crore was accordingly moved towards GCP, authorised by the Board vide resolution dated December 26, 2025.

However, CARE Ratings flagged that the revised GCP allocation of ₹10.43 crore exceeds the stipulated cap of ₹10 crore (being the lower of 15% of amount raised or ₹10 crore, as per the offer document), and no corresponding approval for such excess has been shared with CARE Ratings Limited. No comments were received from the auditors on this matter.

Fund Utilisation Breakdown

The following table details the original and revised cost allocations, along with quarterly utilisation progress:

As reflected above, ₹6.78 crore was utilised during the quarter towards civil construction work and purchase of plant and machinery for the Vizianagaram facility, leaving ₹50.22 crore unutilised under this head. The GCP allocation of ₹10.43 crore saw ₹10.34 crore utilised, with ₹0.09 crore remaining. Issue expenses of ₹7.02 crore were fully deployed. The CA certificate was issued by P.K. Maheshwari and Co (Statutory Auditor) dated April 29, 2026.

Deployment of Unutilised Proceeds

The total unutilised amount of ₹50.31 crore has been deployed as follows:

Implementation Delay at Vizianagaram Facility

The Monitoring Agency report noted a delay in the implementation of the capital expenditure object. Against a planned deployment of ₹20.00 crore for the relevant financial year, only ₹6.78 crore was utilised, resulting in a shortfall of ₹13.22 crore. The company attributed the delay to the following factors:

• The company was listed on December 18, 2025, and during the fourth quarter, purchase orders aggregating to ₹27.52 crore were issued, with payments contractually linked to the achievement of specified milestones.
• The month of January in Andhra Pradesh is marked by major festive occasions, resulting in an acute shortage of labour, causing land levelling activities to commence only in February 2026.
• Delayed commencement of work meant that relevant milestones could not be achieved within stipulated timelines, leading to corresponding payment delays.

The Board stated that discussions were held with concerned vendors and a mutual understanding has been reached, with the company confident that project timelines shall be aligned with the planned schedule going forward. Disbursement of funds and release of payments shall be undertaken strictly in accordance with the achievement of agreed milestones and/or the delivery schedule of the machinery.

Regarding regulatory approvals, preconstruction approvals for the Vizianagaram facility are in place. In addition to the Consent to Establish (CTE) obtained earlier, the company has also secured permission from the Irrigation Department vide letter dated March 9, 2026. The company is presently in the process of obtaining requisite approvals from the Visakhapatnam Metropolitan Region Development Authority (VMRDA), following which all other necessary statutory and regulatory approvals will be obtained in due course.

Regulatory Context

The deviation or variation, as defined under applicable regulations, may refer to:

• Deviation in the objects or purpose for which the funds have been raised
• Deviation in the amount of funds utilised as against what was originally disclosed
• Change in terms of a contract referred to in the fund-raising document, such as a prospectus or letter of offer

The statement was duly reviewed by the Audit Committee and filed in accordance with the requirements of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The Monitoring Agency Report was prepared by CARE Ratings Limited and signed by Associate Director Rajan Sukhija.

pajson agro 's co-promoter has affirmed a positive growth outlook for FY26, underpinned by the company's distinctive "near-zero waste" processing model and a successful stock market listing. The co-promoter's statement signals confidence in the company's operational efficiency and its ability to leverage recent capital market milestones to drive business expansion.

Near-Zero Waste Model as a Core Growth Driver

The near-zero waste processing model has been highlighted as a central pillar of PAJSON Agro's competitive positioning. This approach is designed to maximise the utilisation of raw materials during processing, minimising wastage and potentially improving cost efficiency across the production chain. The co-promoter's affirmation underscores the company's commitment to this model as a sustainable and scalable operational framework heading into FY26.

Successful Listing Adds Momentum

The company's successful listing on the stock exchange has been cited as a significant development supporting its growth ambitions. The listing is seen as a milestone that enhances the company's visibility, credibility, and access to capital, providing a stronger foundation for future business initiatives.

Royal Mewa Brand Gains Consumer Traction

PAJSON Agro's consumer-facing brand, Royal Mewa, is witnessing increased popularity in the market. The brand is strategically positioned to cater to two distinct and growing segments:

• Healthy Snacking: Targeting health-conscious consumers seeking nutritious snack options
• Food Ingredient Markets: Addressing demand from consumers and businesses looking for quality food ingredients

The growing traction for Royal Mewa reflects broader consumer trends toward health-oriented food products, and the brand's dual-market focus positions PAJSON Agro to tap into multiple revenue streams within the food processing sector.

Key Business Highlights

The following table summarises the key developments highlighted by the company's co-promoter:

Collectively, these developments reflect PAJSON Agro's strategy of combining operational efficiency with consumer brand development to drive growth in the food processing and agro-products space.