Statement of Deviation or Variation pursuant to Regulation 32 of SEBI (LODR) Regulations, 2015
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Awaiting price reaction for this filing.
Sattrix Information Security has filed its half-yearly statement on the use of IPO proceeds raised in June 2024 (Rs. 21.78 crore). Out of the total amount, Rs. 15.32 crore has been utilised and Rs. 6.46 crore remains unutilised, parked in Axis Bank fixed deposits. The company has disclosed a variation: the original plan to develop new products and technology in-house has been changed to outsourcing the work, since finding the right expertise in-house took too long. This change was approved by shareholders on February 18, 2025 through a postal ballot. Auditors have confirmed they found no deviation or additional comments, and the Audit Committee has none either.
There is no negative impact on shareholders as the variation was properly approved by shareholders, and unutilised funds are safely kept in bank fixed deposits. However, the shift to outsourcing means the company will not build in-house product development capability as originally promised, and roughly 30% of IPO money is still unspent, which investors should track for timely deployment.