Velox Shipping: Funds Deviation in Preferential Allotment

Velox Shipping and Logistics Ltd has reported a partial deviation in the utilization of funds raised through a preferential allotment. The company raised Rs.7,62,50,000/- via preferential allotment and Rs.9,19,02,096/- through warrant conversion. For the preferential allotment, Rs.1,44,69,974/- was utilized for investment in 'International Logistics Associates LLC (ILA)', acquiring a 98% stake. The original objects included capital expenditure, strengthening financial structure, working capital, and general corporate purposes. The deviation is attributed to a strategic shift towards organic and inorganic expansion, including roll-up acquisitions and investments in other companies, which the company believes offer significantly better returns. The funds from warrant conversion remain unutilized.