Franklin Industries Enhances Transparency with Monitoring Agency for Rights Issue

Franklin Industries Limited has taken a significant step towards enhancing transparency and investor confidence in its ongoing Rights Issue. The company's Board of Directors has approved the voluntary appointment of a SEBI-registered Credit Rating Agency as the Monitoring Agency to oversee the utilization of funds raised through the Rights Issue.

Key Developments

• Monitoring Agency Appointment: The Board has approved the voluntary appointment of a SEBI-registered Credit Rating Agency as the Monitoring Agency for the Rights Issue funds.
• Fund Utilization Control: No Rights Issue proceeds will be utilized until the Monitoring Agency is formally appointed.
• Periodic Reporting: The Monitoring Agency will submit quarterly and event-based monitoring reports to regulatory authorities.
• Internal Oversight: Reports will be regularly reviewed by the company's Audit Committee and Board of Directors.

Enhanced Governance Measures

Franklin Industries has implemented several measures to ensure proper fund utilization and transparency:

1. Controlled Fund Usage: The company has resolved not to use any part of the Rights Issue proceeds until the Monitoring Agency is in place.
2. Regulatory Compliance: The appointment aligns with SEBI (ICDR) Regulations, 2018, demonstrating the company's commitment to regulatory standards.
3. Comprehensive Reporting: Quarterly and event-based monitoring reports will be submitted to BSE Limited and other applicable regulatory authorities.
4. Board Authorization: All directors have been authorized to take necessary actions for appointing the Monitoring Agency and obtaining required approvals.

Board Meeting Details

The decision was made during a Board meeting held on July 25, 2025, which commenced at 12:45 P.M and concluded at 1:00 P.M. The meeting was brief but impactful, focusing on this crucial governance measure.

Management Commentary

Maheshkumar Jethabhai Patel, Managing Director of Franklin Industries Limited, signed off on the Board meeting outcome, underlining the company's commitment to this initiative.

This move by Franklin Industries demonstrates a proactive approach to corporate governance and transparency, potentially boosting investor confidence in the ongoing Rights Issue. The appointment of a Monitoring Agency and the implementation of stringent fund utilization controls showcase the company's dedication to responsible financial management and shareholder interests.