Chandni Machines: Deviation in fund utilization post preferential issue
Chandni Machines Ltd has disclosed a deviation in the utilization of funds raised through a preferential issue for the quarter ended September 30, 2026. The preferential issue was undersubscribed, resulting in proceeds of approximately ₹41.01 crore against the envisaged ₹42.97 crore. Consequently, the company withdrew the proposed allocation of ₹5.00 crore towards 'Investment in Subsidiaries and Strategic Acquisitions'. Additionally, to support a new line of business and growth, the allocation towards 'Working Capital Requirements' was enhanced by ₹3.53 crore. Allocations for 'General Corporate Purposes' and 'Issue Expenses' were reduced accordingly. The Audit Committee reviewed and approved these changes, deeming them reasonable and in the best interest of the company.
Key Highlights
- Preferential issue undersubscribed, raising ₹41.01 Cr vs ₹42.97 Cr.
- ₹5 Cr allocation withdrawn from 'Investment in Subsidiaries'.
- ₹3.53 Cr enhanced allocation to 'Working Capital Requirements'.
- Deviation approved by Audit Committee and Board.
- Changes support new business line and operational needs.
Price Impact
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