Asian Granito India Limited has informed the Exchange about statement of deviation(s) or variation(s) under Reg. 32
ASIANTILES · price
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Asian Granito India Limited has filed a statement of deviation for Rs. 440.96 crores raised via Rights Issue on 10 May 2022. The filing reveals variations in how funds are being deployed compared to the original Letter of Offer dated 6 April 2022. Key changes include redirection of Rs. 32.17 crore from AGL Surfaces Pvt. Ltd. manufacturing capex and Rs. 37.23 crore from Morbi Display Centre to a new Ahmedabad Display Centre cum Office (Rs. 73.80 crore) and Working Capital for Greenfield Projects. Working Capital allocation was reduced by Rs. 9.40 crore. The display centre project in Ahmedabad has faced delays — an initial EPC contract was terminated in Q4FY25 with INR 68.72 crore refunded, and a new vendor agreement for INR 73.80 crore was signed. The project has not yet commenced implementation. All deviations were approved by shareholders via Postal Ballot on 30 March 2023.
The significant reallocation of funds from manufacturing subsidiaries to a delayed Ahmedabad property project raises concerns about execution efficiency and timeline adherence. Shareholders should monitor whether the new display centre project delivers expected returns given the cost escalation from the original Rs. 37.23 crore Morbi plan to Rs. 73.80 crore for Ahmedabad.