Statement on deviation or variation of funds under Regulation 32 of SEBI (Listing obligations and Disclosure Requirements) Regulations, 2015.
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Awaiting price reaction for this filing.
Yarn Syndicate Ltd has filed a compliance statement confirming there was no deviation or variation in the use of proceeds from its Rights Issue dated 25 January 2024. The company raised Rs 4,684.50 Lakhs through the rights issue, of which Rs 2,254.50 Lakhs was received as application money and has been fully utilized as per the stated objects. The balance (Rs 2,430 Lakhs) remains unutilized because the rights shares are partly paid-up and not fully converted to fully paid-up shares. The funds were earmarked for three purposes — acquisition of equity shares in Stitched Textiles Limited (Rs 2,534.50 Lakhs), incremental working capital (Rs 1,350 Lakhs), and general corporate purposes (Rs 800 Lakhs). No monitoring agency was appointed, and the audit committee has raised no concerns regarding fund use.
This is a routine regulatory compliance filing with no adverse findings, which is mildly positive for shareholders as it confirms disciplined use of raised funds. However, nearly half the rights issue proceeds remain tied up due to partly paid-up shares, which could delay full deployment into the stated growth initiatives — a point investors should track in coming quarters.