Desco Infratech Limited , a company known for its infrastructure development projects, has marked a significant milestone in its growth trajectory. The company has been declared the successful bidder for a substantial contract from Bharat Petroleum Corporation Limited (BPCL), a major player in India's oil and gas sector.

Contract Details

Desco Infratech has secured a contract for Last Mile Connectivity (LMC) and associated works for City Gas Distribution (CGD) projects across four geographical areas in Odisha. This project, awarded by BPCL, represents a strategic expansion for Desco Infratech into the Eastern region of India.

Strategic Implications

This contract win is more than just a financial boost for Desco Infratech. It marks the company's entry into a new geographical location, specifically the Eastern region of India. This expansion is expected to:

1. Strengthen Desco Infratech's operational presence
2. Widen the company's footprint beyond its existing areas of operation
3. Potentially open up new opportunities in the region

Company's Response

In a regulatory filing, Desco Infratech confirmed its status as the lowest bidder at the L1 stage, leading to its declaration as the Successful Bidder. The company stated that further details, including those required under SEBI regulations, will be disclosed separately upon receipt of the Letter of Intent (LOI) or Letter of Award (LOA) or Purchase Order from the concerned authority.

Conclusion

This contract win demonstrates Desco Infratech's competitive edge in the infrastructure sector and its ability to secure projects from major public sector undertakings like BPCL. As the company expands its geographical reach, investors and industry observers will be keen to see how this strategic move impacts Desco Infratech's future growth and market position.

Investors are advised to monitor further announcements from the company for more detailed information about the project and its potential impact on Desco Infratech's financial performance.

Desco Infratech Limited has announced a significant proposal to modify the utilization of its Initial Public Offering (IPO) proceeds. The company is seeking shareholder approval through a postal ballot to redirect Rs 168.04 lakhs, originally earmarked for machinery purchase, towards working capital requirements.

Key Details of the Proposal

• Amount to be Reallocated: Rs 168.04 lakhs
• Original Purpose: Purchase of machineries
• Proposed New Purpose: Working capital requirements
• Voting Period: November 19 to December 18, 2025
• Voting Method: E-voting through National Securities Depository Limited (NSDL)

Rationale Behind the Change

The company's management has provided several reasons for this proposed reallocation:

1. Sufficient Existing Infrastructure: After a comprehensive review, the management concluded that current operational needs can be met with existing machinery and technical capabilities.
2. New Project Acquisitions: Desco Infratech has secured several new projects and contract opportunities in both existing and new geographical areas.
3. Working Capital Needs: Timely execution of these new projects requires adequate liquidity and working capital.
4. Financial Prudence: The reallocation aims to reduce dependence on external borrowings and strengthen the company's cash flow.

Impact on IPO Fund Utilization

The proposed change affects only a portion of the total IPO proceeds. Here's a breakdown of the IPO fund utilization:

Shareholder Approval Process

The company has initiated a postal ballot process in compliance with regulatory requirements:

• Voting Period: November 19, 2025 (9:00 A.M. IST) to December 18, 2025 (5:00 P.M. IST)
• Eligibility: Shareholders as of November 14, 2025 (cut-off date)
• Voting Method: Electronic voting through NSDL e-Voting system
• Result Declaration: On or before December 20, 2025

Management's Perspective

The Board of Directors believes this reallocation will support the execution of high-value contracts, enhance revenue generation capacity, and improve overall profitability. They assert that this change aligns with the company's current business strategy and growth outlook.

Shareholders are advised to carefully review the postal ballot notice and cast their votes through the e-voting system within the specified timeframe. The outcome of this vote will determine whether Desco Infratech can proceed with its plans to redirect the unutilized IPO funds towards working capital needs.