Vandan Foods Limited , a prominent player in the food industry, has announced the complete utilization of its Initial Public Offering (IPO) proceeds, amounting to Rs. 30.36 crore. The company, which went public on June 23, 2025, has deployed the funds in line with the objectives stated in its prospectus, demonstrating a commitment to transparency and strategic growth.

Breakdown of Fund Utilization

The company has provided a detailed account of how the IPO funds were allocated:

Key Highlights

1. Working Capital Boost: The largest portion of the funds, Rs. 8.57 crore, was allocated and fully utilized for working capital requirements, potentially enhancing the company's operational efficiency.

2. Debt Reduction: Vandan Foods used Rs. 2.81 crore to repay outstanding borrowings, slightly less than the initially allocated Rs. 3.00 crore.

3. Expansion Plans: Rs. 8.22 crore was invested in expanding the Dhinoj Facility, indicating the company's focus on growth and increased production capacity.

4. General Corporate Purposes: The company utilized Rs. 7.51 crore for general corporate purposes, exactly as planned in the prospectus.

5. Cost-Effective IPO: Issue-related expenses amounted to Rs. 2.77 crore, slightly lower than the allocated Rs. 2.99 crore, suggesting efficient management of the IPO process.

Financial Prudence and Transparency

Vandan Foods Limited's meticulous utilization of IPO funds aligns closely with its stated objectives, with only minor variations in certain categories. This adherence to the prospectus demonstrates the company's commitment to financial discipline and transparency.

The company's Board of Directors and Audit Committee have reviewed and approved the fund utilization statement. Additionally, Piyush Kothari & Associates, Chartered Accountants, have certified the utilization of funds, further enhancing the credibility of the report.

Market Implications

The full utilization of IPO proceeds as per the stated objectives may be viewed positively by investors and market analysts. It reflects the company's ability to execute its plans effectively and may contribute to building trust in Vandan Foods' management.

As Vandan Foods Limited moves forward with its expanded facilities and improved working capital position, stakeholders will likely keep a close eye on how these investments translate into financial performance and market position in the coming quarters.

This development marks a significant milestone for Vandan Foods Limited post its IPO, setting the stage for its next phase of growth in the competitive food industry sector.

Vandan Foods Limited has announced its unaudited financial results for the half-year ended September 30, 2025, showcasing growth in both profitability and assets.

Financial Highlights

The company reported a profit before tax of Rs 2.47 lakh for the period. This figure indicates the company's ability to generate earnings from its operations before accounting for income tax expenses.

One of the most notable aspects of the financial results is the significant increase in the company's total assets. Vandan Foods saw its total assets rise to Rs 10,924.24 lakh, up from Rs 4,883.18 lakh in the previous comparable period. This substantial growth of over 123% in total assets suggests a considerable expansion in the company's resource base.

The company's share capital also saw an increase, rising to Rs 838.48 lakh from Rs 574.48 lakh. This rise in share capital indicates that the company may have issued additional shares.

IPO Fund Utilization

According to the Statement of Deviation or Variation submitted by the company, Vandan Foods has utilized the majority of funds raised from its Initial Public Offering (IPO). The company raised a total of Rs 30.36 crore through the IPO, which was allocated for various purposes:

The company has utilized Rs 29.88 crore of the total funds raised, with a balance of Rs 0.48 crore remaining unutilized as of September 30, 2025.

Management Commentary

Jitendra Rameshbhai Patel, Managing Director of Vandan Foods Limited, signed off on the financial results, indicating the board's approval of the reported figures.

Auditor's Review

Piyush Kothari & Associates, Chartered Accountants, conducted a limited review of the unaudited financial results. The auditors stated that based on their review, nothing has come to their attention that causes them to believe that the financial results do not present a true and fair view in accordance with applicable accounting standards and other recognized accounting practices and policies.

The financial results and fund utilization report demonstrate Vandan Foods Limited's commitment to transparency and compliance with regulatory requirements.