Announcement under Regulation 30 - Clarification regarding the use of the proceeds of the proposed preferential issue of the Company
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Ritesh International Ltd has clarified that the entire proceeds from its proposed preferential issue, approved at the EGM held on 30 October 2025, will be used to reduce the working capital limits currently availed by the company. The company did not disclose the size of the preferential issue in this filing. The clarification was issued under SEBI Regulation 30, likely in response to queries from the exchange or investors about the end-use of funds.
Using fresh capital to pay down working capital borrowings may reduce interest costs and improve the company's debt position, but it also means no fresh capital is being deployed for growth or expansion, which could be viewed neutrally to slightly negatively by shareholders looking for operational scale-up.