Padam Cotton Yarns: ₹2.85 Cr Deviation in Rights Issue Fund Use
Padam Cotton Yarns Ltd has reported a deviation of ₹2.85 crore (15.23%) in the utilization of funds raised through its Rights Issue. The monitoring agency, Infomerics Valuation and Rating Limited, noted that ₹0.48 crore was deployed as loans to Ved Shastra Astro, and ₹2.00 crore as loans to DSP Technical and Financial Services. The nature and purpose of these advances could not be independently verified by the monitoring agency, and they were not specified in the offer document. Additionally, issue-related expenses of ₹0.37 crore paid to Ved Shastra Astro were also treated as a deviation as verification was not possible. Almost all funds raised (₹18.71 crore) were utilized in Q4FY26, with a minimal amount remaining.
Key Highlights
- Rights issue fund utilization shows a 15.23% deviation.
- ₹2.85 crore in advances to related parties lacked verification.
- Monitoring agency flagged unverified issue-related expense reimbursements.
- Nearly all ₹18.71 crore rights issue proceeds were utilized.
- Deviation reported for the quarter ended June 30, 2026.
Price Impact
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