Laxmi Organic Industries Reports Zero Deviation in IPO Proceeds Utilization for Q3FY26

Laxmi Organic Industries Limited has successfully maintained complete compliance with its IPO proceeds utilization plan, reporting zero deviation for the quarter ended December 31, 2025. The chemical industry company filed its monitoring agency report under Regulation 32 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, confirming adherence to all objects stated in its March 18, 2021 prospectus. Monitoring Agency Confirms Zero Deviation Axis Bank Limited, serving as the monitoring agent, issued a comprehensive report validating the company's IPO proceeds deployment. The monitoring agency confirmed no deviation from the original objects and reported a 0% deviation range across all categories. Parameter Status Details Deviation from Objects No Deviation All utilization as per offer document Range of Deviation 0% No percentage deviation observed Shareholder Approval Required Not Applicable No material deviations occurred Government Approvals Yes All statutory approvals obtained IPO Proceeds Structure and Utilization The company's March 2021 IPO raised ₹5,000.00 million through fresh issue, with net proceeds of ₹4,843.78 million after deducting offer expenses of ₹156.22 million. The original offer expenses estimate showed savings of ₹43.58 million, which was allocated to general corporate purposes. Utilization Category Original Amount (₹ Million) Amount Utilized (₹ Million) Unutilized Balance (₹ Million) Investment in YFCPL for Capex 604.04 604.04 - Investment in YFCPL for Working Capital 377.41 132.13 245.27 SI Manufacturing Facility Expansion 910.63 910.63 - Company Working Capital Requirements 351.78 351.78 - Plant and Machinery Purchase 125.65 125.65 - Debt Repayment 1,729.25 1,729.25 - General Corporate Purposes 745.02 745.02 - Offer Related Expenses 156.22 156.22 - Total 5,000.00 4,754.72 245.27 Strategic Deployment Across Multiple Objects The proceeds utilization spans eight key areas, with significant allocations toward debt repayment (₹1,729.25 million) and facility expansion (₹910.63 million). The company has completed utilization for most objects, with only the YFCPL working capital investment showing partial deployment. Key facility locations include: Lote, Maharashtra: YFCPL capital expenditure and working capital projects Mahad, Maharashtra: SI Manufacturing Facility expansion and infrastructure development Unutilized Funds Management The remaining ₹245.27 million in unutilized proceeds has been prudently deployed in fixed deposits to ensure capital preservation while generating returns. Investment Type Amount (₹ Million) Maturity Date ROI (%) Market Value (₹ Million) Fixed Deposit - Axis Bank 87.50 January 10, 2026 6.05% 90.04 Fixed Deposit - HDFC 157.70 March 16, 2026 4.75% 158.08 Total 245.20 - - 248.12 Compliance and Governance Excellence The monitoring report highlights the company's strong governance framework, with all certifications provided by chartered accountants and no unfavorable events affecting object viability. The company has obtained all necessary government and statutory approvals for its projects, demonstrating comprehensive regulatory compliance. This zero-deviation report reinforces Laxmi Organic Industries' commitment to transparent capital deployment and adherence to investor commitments made during its public offering. The systematic utilization of IPO proceeds across strategic growth initiatives positions the company well for its expansion objectives in the chemical industry. Laxmi Organic Industries Limited has released its unaudited financial results for the third quarter and nine months ended December 31, 2025, revealing a challenging operational environment with declining revenues and profitability metrics. Financial Performance Overview The company's standalone financial performance for Q3FY26 showed notable declines across key metrics compared to the previous year: Metric Q3FY26 Q3FY25 Change (%) Revenue from Operations ₹7,068.72 million ₹7,678.72 million -7.9% Total Income ₹7,100.46 million ₹7,734.80 million -8.2% Net Profit After Tax ₹198.31 million ₹278.15 million -28.7% Basic EPS ₹0.71 ₹1.01 -29.7% The consolidated results showed a similar trend, with revenue from operations declining to ₹7,186.82 million from ₹7,863.35 million in Q3FY25, representing an 8.6% decrease. Nine-Month Performance Analysis For the nine-month period ended December 31, 2025, the company's performance reflected sustained pressure: Parameter 9M FY26 9M FY25 Variance Standalone Revenue ₹20,852.01 million ₹22,303.34 million -6.5% Standalone Net Profit ₹567.38 million ₹895.46 million -36.6% Consolidated Revenue ₹21,113.57 million ₹22,757.55 million -7.2% Consolidated Net Profit ₹578.11 million ₹917.45 million -37.0% Significant Operational Developments The company implemented several important changes during the reporting period that impacted its financial performance. A key development was the change in depreciation method from written down value to straight line method, reflecting management's reassessment of economic benefits from assets. This change resulted in lower depreciation expenses, with the company noting that under the previous method, depreciation for Q3FY26 would have been higher by ₹288.97 million. Additionally, Laxmi Organic reversed accrued liabilities of ₹407.27 million related to wheeling losses, wheeling charges, transmission losses and transmission charges levied by Maharashtra State Electricity Distribution Company Limited. This reversal was based on a favorable order from MERC and adjustments in electricity bills received during the quarter. Corporate Governance Updates The Board of Directors approved the re-appointment of Dr. Rajiv Banavali as an Independent Director for a second term of two years from May 18, 2026, to May 17, 2028. Dr. Banavali brings over 38 years of experience in the chemicals sector, with 23 years in leadership roles at cutting-edge research organizations including WestRock Corporation, Rohm & Haas, Honeywell, and Huntsman. Tax and Regulatory Matters The company exercised the option under Section 115BBA of the Income Tax Act, 1961, to compute income tax at the revised rate of 25.17%. This resulted in a reversal of deferred tax liability of ₹97.18 million for the nine-month period. The company also recognized an expense of ₹38.02 million toward increased gratuity liability and compensated absences following the notification of new Labour Codes by the Government of India. Capital Structure Changes During the nine-month period, the company allotted 1,24,060 equity shares of face value ₹2 each to option grantees. The paid-up capital increased from ₹554.05 million to ₹554.30 million, consisting of 27,71,47,873 equity shares. The company also received GST incentives of ₹234.46 million under the Package Scheme of Incentives – 2019 from the Government of Maharashtra during the quarter ended September 30, 2025. We’re building Scanx - to help you express your trading & investing idea, to help you analyse the markets better. Stock Markets are the true indicator of the growth of any country's economy. 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