Walchandnagar Industries Limited has successfully resolved its arbitration dispute with Aicitta Intelligent Technology Private Limited through an amicable settlement. The company disclosed the resolution under Regulation 30 of SEBI Listing Regulations on March 5, 2026, marking the end of legal proceedings that began with a petition filed under Section 9 of the Arbitration and Conciliation Act, 1996.

Settlement Details and Financial Recovery

The dispute resolution was formalized through Consent Terms signed on March 4, 2026, between the parties involved. Under the settlement agreement, Walchandnagar Industries will recover a substantial amount from the respondents.

The recovered sum represents refunds of Inter-Corporate Deposits (ICD) that Walchandnagar Industries had arranged for Aicitta, along with legal and other expenses incurred by the company for this project.

Dispute Background and Parties

The original dispute involved Aicitta Intelligent Technology Private Limited and its promoters, Arjun Das and Vikram Sarin, as respondents. The company had initially filed a petition seeking appropriate interim reliefs under the Arbitration and Conciliation Act, 1996, which was disclosed to stock exchanges in May 2025.

Project Withdrawal and Future Impact

As part of the mutual understanding reached between the parties, Walchandnagar Industries has decided to withdraw from the disputed project entirely. The company stated that it will not be participating in the said project going forward, effectively ending its involvement in the venture that led to the original dispute.

The settlement terms indicate no additional financial impact on the company beyond the recovery of the specified amount. This resolution allows Walchandnagar Industries to close this chapter and focus on its core business operations without the burden of ongoing litigation.

Regulatory Compliance

The disclosure was made in compliance with Regulation 30 of SEBI Listing Obligations and Disclosure Requirements Regulations, 2015, along with relevant SEBI Master Circulars. The company has fulfilled its obligation to inform both NSE and BSE about the settlement, ensuring transparency for its stakeholders and investors.

Walchandnagar Industries Limited has filed its quarterly statement confirming no deviation in the use of proceeds raised through its preferential issue for the quarter ended December 31, 2025. The statement, submitted to stock exchanges on January 29, 2026, demonstrates the company's adherence to its original fund utilization plan as outlined in the Letter of Offer.

Fund Raising Details

The company raised Rs. 247.59 crores through the issue of fully convertible equity warrants on a preferential basis on November 03, 2023. The fund structure comprised Rs. 216.00 crores received from investors and Rs. 31.59 crores adjusted towards conversion of outstanding loans. ICRA Limited serves as the monitoring agency for the fund utilization.

Fund Utilization Breakdown

The proceeds have been allocated across five strategic objectives with specific utilization patterns:

Strategic Reallocation

The company implemented board-approved reallocations to optimize fund deployment. Rs. 4.00 crores was reallocated from capital expenditure to loan repayment, while Rs. 17.00 crores was shifted from capital expenditure to working capital requirements. Additionally, Rs. 21.00 crores from the capital expenditure allocation was utilized for loan repayment and working capital needs.

Compliance and Oversight

The Audit Committee reviewed the fund utilization in its meeting held on January 29, 2026, confirming compliance with regulatory requirements under Regulation 32 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company's auditors provided no adverse comments on the fund deployment strategy.

Current Status

As of December 31, 2025, the company has successfully utilized the raised funds according to its strategic priorities without any deviation from the approved objectives. The reallocations were executed through proper board resolutions, ensuring transparency and regulatory compliance throughout the process.