IKIO Technologies Limited has announced the incorporation of a new step-down subsidiary in the United Arab Emirates as part of its expansion strategy. The company informed stock exchanges about the establishment of ROYALUX GENERAL TRADING LLC through its subsidiary structure.

Corporate Structure and Ownership

The new subsidiary has been incorporated by Ritech Holding Limited UAE, which is a wholly owned subsidiary of IKIO Solutions Private Limited. IKIO Solutions Private Limited, in turn, is a wholly owned subsidiary of IKIO Technologies Limited, creating a step-down subsidiary structure.

Financial Structure

The newly incorporated entity has been established with a defined capital structure to support its trading operations. The authorized and paid-up share capital amounts to AED 300,000, structured as 300 shares with a face value of AED 1,000 each.

Business Objectives and Operations

According to the Memorandum of Association, ROYALUX GENERAL TRADING LLC will focus on general trading business and related activities. The company's objectives include:

• Carrying on general trading business and ancillary activities
• Participating with other companies in similar business ventures
• Expanding operations both within UAE and internationally
• Supporting the group's overall trading operations expansion

The subsidiary will operate from Dubai and is prohibited from engaging in insurance or banking business or investing funds for third-party accounts except in the normal course of business.

Regulatory Compliance

The incorporation has been completed in accordance with UAE regulatory requirements and relevant approvals from UAE authorities. The company has fulfilled disclosure obligations under SEBI Listing Regulations, specifically Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The initial subscription consideration of AED 153,000 has not been remitted as of the disclosure date and will be paid in due course according to applicable laws. Since the entity is newly incorporated, historical financial performance data is not yet available.

IKIO Technologies Limited has submitted its quarterly monitoring agency report for the quarter ended December 31, 2025, in compliance with SEBI regulations. The report provides a comprehensive overview of the utilization of proceeds from the company's Initial Public Offer (IPO) conducted in June 2023.

IPO Proceeds Utilization Status

The monitoring agency report, prepared by CRISIL Ratings Limited, reveals that IKIO Technologies utilized Rs 163.69 million during the third quarter of FY26. The company's cumulative utilization stands at Rs 2,721.77 million from the total revised net proceeds of Rs 3,261.41 million, leaving Rs 539.64 million unutilized.

Object-wise Fund Deployment

The IPO proceeds were allocated across three primary objectives. The repayment of borrowings worth Rs 500.00 million has been fully completed during the quarter ended June 30, 2023. For investment in wholly owned subsidiary IKIO Solutions Private Limited, the company has utilized Rs 1,583.99 million out of the allocated Rs 2,123.12 million, leaving Rs 539.13 million pending. General corporate purposes have seen utilization of Rs 637.78 million against the allocated Rs 638.29 million.

Investment of Unutilized Funds

The company has deployed the unutilized proceeds in fixed deposits with HDFC Bank, earning returns ranging from 6.15% to 7.55%. The total amount invested in various fixed deposits is Rs 537.63 million, which has generated earnings of Rs 25.29 million as of December 31, 2025. The market value of these investments stands at Rs 563.42 million.

Regulatory Compliance and Approvals

The monitoring agency confirmed that all government and statutory approvals related to the objects have been obtained. These include approvals from Noida Authority for building layout, consent to establish, electrical load sanction from UP Electricity Board, and factory license from the Industrial Department. The company has also obtained necessary approvals for its leased premises at Plot No-6, Sector-156, Gautam Buddha Nagar, where commercial production commenced on March 20, 2024.

Implementation Timeline

The report indicates a delay in the complete utilization of funds allocated for the subsidiary investment, which was originally scheduled for completion by Fiscal 2025. The company has confirmed that the remaining net proceeds will be utilized in subsequent periods in accordance with applicable laws on or before March 31, 2027. The delay is attributed to procurement challenges, operationalization of assets, and obtaining necessary approvals and licenses.

Monitoring Framework

CRISIL Ratings Limited continues to serve as the monitoring agency, appointed to oversee the utilization of IPO proceeds as per the Monitoring Agency Agreement dated April 18, 2023. The report confirms no deviations from the disclosed objects and no material changes in the means of finance for the stated objectives.