The Board of Directors have approved deviation of funds of Rs. 7,62,50,000 subject to the approval of shareholders of the Company
Price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Awaiting price reaction for this filing.
The Board of Velox Shipping and Logistics has approved diverting Rs. 7,62,50,000 (about Rs. 7.63 crore) that was raised through a preferential allotment on August 26, 2022. The funds were originally meant for business expansion, general corporate purposes, and boosting working capital, but the company has not used any of the money so far. The new proposed uses include acquiring or investing in a foreign entity called International Logistics Associates LLC (ILA), other inorganic acquisitions, working capital needs, and general corporate purposes. This change in the use of funds now needs to be approved by shareholders at a general meeting.
For shareholders, this signals a strategic pivot toward acquisitions, particularly the proposed investment in a US-based logistics entity (ILA), which could expand the company's international footprint. However, the fact that no funds have been deployed nearly three years after the raise may raise questions about execution and capital planning; the move will only take effect after shareholder approval.