Ind Swift Laboratories Limited (ISLL) has reported significant deviations in the utilization of funds raised through its Rs. 314.60 crore preferential issue, according to a monitoring agency report by Care Ratings Limited for the quarter ended September 30, 2025.

Key Findings

The monitoring agency identified a 14.37% deviation from the stated objectives of the preferential issue. The report highlighted two main areas of concern:

1. Unauthorized Reimbursement: The company claimed reimbursement of Rs. 45.21 crore towards expansion of business related to the previous quarter. However, this reimbursement was not allowed as per the objects of the preferential issue.

2. Third-Party Investment: ISLL invested Rs. 64.09 crore from the issue proceeds in Khandelwal Finance Private Ltd. (KFPL), a registered NBFC and a third-party entity.

Fund Utilization Details

The following table summarizes the fund utilization as reported:

Company's Response

In response to the monitoring agency's findings, Ind-Swift Laboratories provided the following explanations:

1. The company cited the merger with group company Ind-Swift Limited, approved by NCLT Chandigarh on July 17, 2025, as the reason for the reimbursement. ISLL stated that post-merger, it has accounted for capital expenditure done for the group company towards the utilization of proceeds for approved purposes.

2. Regarding the investment in KFPL, the company explained that it was made in secured Optionally Convertible Redeemable Preference Shares bearing an interest rate of 8.25% to achieve better returns on spare funds.

Monitoring Agency's Concerns

Care Ratings expressed concerns about the commingling of funds, which limited their ability to directly ascertain the utilization of the issue proceeds. The agency noted that the company had transferred majority of the funds from its monitoring account to multiple current accounts or overdraft accounts before payment during Q2FY26.

Implications and Next Steps

The reported deviations raise questions about the company's adherence to the stated objectives of the preferential issue. Shareholders and regulatory bodies may seek further clarification on these fund utilization practices.

Ind-Swift Laboratories will need to address the concerns raised in the monitoring report and may face increased scrutiny from investors and regulators. The company's future financial decisions and corporate governance practices are likely to be closely watched in light of these findings.

Ind Swift Laboratories Limited (ISLL) has made significant progress in its share listing process following a recent scheme of amalgamation. The company has received a crucial approval from the National Stock Exchange of India (NSE) and is awaiting final clearance from the Bombay Stock Exchange (BSE) to complete the listing of newly allotted equity shares.

Key Developments

• NSE Approval: On October 10, 2025, ISLL received listing approval from NSE for equity shares allotted to eligible shareholders of Ind-Swift Limited under the approved scheme of amalgamation.
• BSE Approval: The approval from BSE is currently pending and expected shortly, as per the company's latest update.
• Application Timeline: ISLL filed listing applications with both NSE and BSE on September 12, 2025.

Next Steps

Upon receiving BSE approval, ISLL plans to:

1. Credit shares to shareholders' Demat accounts
2. Apply for trading approval

It's important to note that shareholders will only be able to trade the newly allotted equity shares after trading approval is granted by both exchanges.

Corporate Communication

In an update dated November 4, 2025, Pardeep Verma, VP-Corporate Affairs & Company Secretary of ISLL, provided additional details:

• The company has submitted all required documents and clarifications to BSE.
• ISLL is in regular communication with BSE to expedite the approval process.
• The BSE approval is reportedly under final review.

Implications for Shareholders

Shareholders of Ind-Swift Limited who are eligible for equity shares in ISLL under the amalgamation scheme should be aware that:

• The process is nearing completion with NSE approval secured.
• Trading of new shares is contingent on both NSE and BSE approvals.
• ISLL is actively working to finalize the process and will inform shareholders of further developments.

This corporate action represents a significant step for Ind-Swift Laboratories Limited and affected shareholders. The company's proactive communication demonstrates its commitment to transparency and regulatory compliance throughout this process.