Sigachi Industries Limited announced an update on the monitoring agency's report, dated August 13, 2025, regarding the utilization of proceeds from its Initial Public Offering (IPO) and convertible share warrants. The reports, issued by Kotak Mahindra Bank Limited and Care Ratings Limited, provide insights into the company's financial activities. Kotak Mahindra Bank Limited, the monitoring agency for the IPO proceeds, stated in its report dated August 12, 2025, that no deviation was observed in the utilization of the issue proceeds. The bank affirmed that the report, based on the format prescribed by the Securities and Exchange Board of India (SEBI), presents a true and fair view of the utilization of the offer proceeds. Additionally, the bank confirmed the absence of any direct or indirect interest in the company and declared no conflict of interest in monitoring and reporting the utilization of the offer proceeds. Care Ratings Limited, in its report dated August 11, 2025, related to the convertible share warrants issue for the quarter ended June 30, 2025, also indicated no deviations from the stated objectives. However, the report noted that ₹68.63 crore from the warrant holders has not been received within the stipulated timeline, potentially leading to a change in the means of finance and delays in capex implementation. Furthermore, the fire incident at the Hyderabad facility is expected to adversely affect planned capex and expansion initiatives. Of the promoter investment, 41% of the funds (₹56.77 crore) have not been infused by the promoters. The reports have been submitted in accordance with SEBI guidelines, capturing comments where applicable. The issuer's management and audit committee will review specific sections of the report before disseminating it through stock exchanges. Sigachi Industries confirmed that the funds have been fully utilized as per the offer document for expanding microcrystalline cellulose (MCC) production capacity at Dahej, Gujarat. The management's decision to shift the Croscarmellose Sodium (CCS) project from Kurnool to Dahej SEZ was approved by shareholders, and the company is seeking an extension for project completion by fiscal year 2026. The company has received approvals from CTE, GIDC, Electricity Boards, and environmental clearance from SEIAA for the Dahej project. The existing excipients-based manufacturing facilities are located in Gujarat, and the company proposed to shift the project location from Kurnool to Dahej SEZ to leverage these facilities.
