BSEMehul Colours LtdMinimalNeutral
Announced Sat, 30 May · 20:03 IST

Statement of funds utilization of IPO proceeds for the half year ended 31st March, 2026.

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AI summary

Mehul Colours Limited filed a SEBI Regulation 32 statement confirming no deviation in the use of IPO proceeds raised through its listing on BSE on 6th August 2025. The company raised Rs. 2,165.76 lakhs through its IPO and as of 31st March 2026, has utilized Rs. 1,062.43 lakhs (49%). The largest allocation of Rs. 1,463.48 lakhs was for funding capital expenditure towards a new manufacturing facility, but only Rs. 372.11 lakhs has been spent so far, leaving Rs. 1,091.37 lakhs unutilized. Working capital requirements (Rs. 400 lakhs) and issue expenses (Rs. 281.15 lakhs) have been fully deployed. The unutilized Rs. 1,103.33 lakhs is temporarily held in separate bank accounts. The audit committee reviewed and approved the utilization on 30th May 2026.

Likely market impact

The confirmation of no deviation is positive for shareholders as funds are being deployed as per disclosed objects. However, the low utilization rate for capital expenditure (25%) suggests the new manufacturing facility is still in early stages of development, and shareholders should monitor future progress updates for clarity on deployment timelines.