Apollo Ingredients Limited (formerly Indsoya Limited) has disclosed significant deviations in the utilization of its rights issue proceeds through a monitoring agency report for the quarter ended December 31, 2025. The report, prepared by Infomerics Valuation and Rating Limited, highlights concerns regarding fund deployment that diverged from the original stated objectives.

Rights Issue Details and Fund Utilization

The company had raised ₹5.00 crore through a rights issue conducted from July 16 to July 29, 2025. The issue involved 1,00,00,000 fully paid-up equity shares at a face value of ₹5.00 each, offered to eligible shareholders in a ratio of 25 rights shares for every 1 equity share held as on the record date of July 7, 2025.

Deviation from Stated Objectives

The monitoring agency identified a significant deviation in fund utilization, with the company using ₹3.00 crore for advance lease payments instead of the originally planned raw material procurement and working capital requirements. This deviation falls within the 50-75% range of the total issue size.

Regulatory Compliance Issues

The report highlighted that the company failed to obtain proper shareholder approval through a special resolution for making the advance lease payment of ₹3.00 crore from the rights issue proceeds. While the company did secure approval for the related party transaction involving Apollo Ingredients India Private Limited at the 45th Annual General Meeting held on September 27, 2025, this approval did not specifically cover the change in utilization of issue proceeds.

Fund Deployment Status

As of December 31, 2025, the company had utilized ₹4.33 crore out of the total ₹5.00 crore raised, leaving ₹0.67 crore unutilized and maintained in the company's current account with Axis Bank. The utilization included ₹4.05 crore towards working capital and lease payments, along with ₹0.28 crore for issue-related expenses.

Company's Position

The Board of Directors noted that shareholders had approved the proposal to lease a factory from the related party for ₹3.00 crore at the Annual General Meeting. The company emphasized that the transaction was implemented in accordance with the approval granted and applicable statutory provisions, though this did not address the specific concern regarding deviation from the original issue objectives.

Business Operations

Apollo Ingredients Limited operates as a global science-based company developing innovative nutrition solutions, dietary supplements, and natural food colors. The company recently shifted its business activity to pharmaceuticals and nutraceuticals, entering this new line of business through a special resolution dated June 19, 2024.

Apollo Ingredients Limited (formerly known as Indsoya Limited) has announced its unaudited financial results for the quarter ended December 31, 2025, following the board meeting held on February 14, 2026. The company demonstrated strong financial performance with significant revenue growth and improved profitability metrics.

Q3FY26 Financial Performance

The company's quarterly results show robust operational performance across key financial parameters:

Year-to-Date Performance Analysis

The nine-month performance demonstrates the company's sustained growth trajectory:

Board Meeting Outcomes and Corporate Actions

The board meeting held on February 14, 2026, addressed several key corporate governance matters:

The board approved remuneration for the Managing Director and Chief Financial Officer, with payments for July-September and October-December quarters scheduled for subsequent periods, including after March 31, 2026, subject to statutory compliance.

Regulatory Compliance and Monitoring

The company addressed a monitoring agency observation regarding ₹3 crore utilization from rights issue proceeds for lease consideration with related party Apollo Ingredients India Private Limited. The board noted that prior member approval was obtained on September 27, 2025, for the 10-year factory lease transaction not exceeding ₹3.00 crore.

Trading Window and Disclosure Requirements

The trading window for designated persons, which closed on January 1, 2026, will remain closed until February 16, 2026. The company has fulfilled its obligations under SEBI LODR Regulations 30 and 33, with results published in prescribed newspaper format and uploaded on BSE website and company website at www.apolloingredients.in .