Sihora Industries Seeks Shareholder Nod to Use ₹63.74 Lakh IPO Funds for New Machinery

Sihora Industries Limited has initiated a postal ballot to seek shareholder approval for changing the utilization of a portion of its unutilised IPO proceeds. The company plans to deploy ₹63.74 lakh towards the purchase of new machinery to expand its manufacturing capabilities and diversify its product portfolio into zipper chains and finished zippers.

The proposal follows the Board of Directors' approval on July 15, 2026, and will require shareholders' consent through a special resolution. The remote e-voting process will begin on July 19, 2026 and conclude on August 17, 2026, with the resolution deemed passed on the last date of voting, subject to receiving the requisite majority.

Key Highlights

Particulars	Details
Company	Sihora Industries Limited
Announcement Date	July 18, 2026
Board Approval Date	July 15, 2026
Proposal	Change in utilization of unutilised IPO proceeds
Amount to be Reallocated	₹63.74 lakh
Purpose	Purchase of new manufacturing machinery
New Product Segment	Zipper chains and finished zippers
Approval Required	Shareholders via Special Resolution
E-voting Period	July 19 – August 17, 2026
E-voting Agency	National Securities Depository Limited (NSDL)

Why Is Sihora Industries Changing the IPO Fund Utilisation?

Sihora Industries stated that the proposed change is driven by changes in business conditions since its IPO. The company cited higher acquisition costs, foreign exchange fluctuations, and limited commercial viability of the originally planned equipment purchase as key reasons for revising the utilisation of funds.

Instead of proceeding with the earlier capital expenditure plan, the company intends to invest in machinery that will enable it to manufacture zipper chains and finished zippers, helping expand its product offerings and strengthen its manufacturing capabilities.

Proposed Machinery Purchase

The company plans to procure the following machines as part of the revised capital expenditure plan:

Machinery	Quantity
Crochet Knitted Machines	4
Coiling Machines	12
Stitching Machines	12
Total Machines	28

The proposed investment is expected to enhance production capacity while allowing Sihora Industries to enter new product categories within the textile accessories segment.

IPO Proceeds Reallocation

The revised proposal utilizes a portion of the unspent IPO proceeds that remained after fulfilling existing commitments.

Category	Unutilised Amount	Existing Commitments	Balance Available
General Issue Proceeds	₹77.08 lakh	₹16.57 lakh	₹60.50 lakh
Market Maker Payments	₹9.24 lakh	₹6.00 lakh	₹3.24 lakh
Total	₹86.32 lakh	₹22.57 lakh	₹63.74 lakh

The balance amount of ₹63.74 lakh will be redirected towards purchasing the proposed machinery, subject to shareholder approval.

Postal Ballot and E-Voting Details

Sihora Industries will seek shareholder approval through a postal ballot process conducted electronically.

Particular	Details
Voting Mode	Remote E-Voting
E-Voting Agency	NSDL
Voting Opens	July 19, 2026
Voting Closes	August 17, 2026
Scrutinizer	M/s. Hardik Jetani & Associates, Practicing Company Secretaries
Resolution Type	Special Resolution

The resolution will be considered approved if it receives the required majority of shareholder votes by the close of the voting period.

Key Corporate Approvals

The Board has approved multiple actions relating to the proposed change in IPO fund utilisation.

Approval	Details
Alteration of IPO Objects	Revision of the original objects stated in the IPO prospectus dated October 6, 2025
Machinery Purchase	Approval to acquire 28 new machines for manufacturing expansion
Postal Ballot	Shareholder approval through electronic voting
E-Voting Agency	NSDL appointed to conduct the voting process
Scrutinizer	Hardik Jetani & Associates appointed to oversee the voting

Business Impact

The proposed investment is aimed at strengthening Sihora Industries' manufacturing capabilities and enabling the company to diversify into zipper chains and finished zippers. By expanding its product portfolio, the company seeks to improve operational efficiency, tap new business opportunities, and enhance long-term revenue potential.

The revised deployment of IPO proceeds also reflects management's effort to optimise capital allocation in response to changing market conditions rather than pursuing projects that may no longer offer the intended commercial benefits.

Historical Stock Returns

Period	Returns
1 Day	0.00%
5 Days	0.00%
1 Month	-2.20%
6 Months	+1.00%
1 Year	-11.91%
5 Years	-11.91%

Outlook

The proposed reallocation of IPO proceeds highlights Sihora Industries' focus on aligning capital expenditure with current business opportunities. If approved by shareholders, the investment in new machinery could help the company broaden its manufacturing portfolio and improve future growth prospects through expansion into higher-value zipper products.

Investors will closely watch the outcome of the postal ballot and the company's execution of its manufacturing expansion strategy over the coming quarters.

1. Why is Sihora Industries seeking shareholder approval?

The company is seeking approval to change the utilisation of ₹63.74 lakh of unutilised IPO proceeds for purchasing new machinery instead of the originally planned capital expenditure.

2. How much of the IPO proceeds will be reallocated?

Sihora Industries plans to reallocate ₹63.74 lakh from its unutilised IPO proceeds.

3. What machinery will the company purchase?

The company proposes to acquire 4 Crochet Knitted Machines, 12 Coiling Machines, and 12 Stitching Machines.

4. When will shareholders vote on the proposal?

The remote e-voting process will run from July 19, 2026, to August 17, 2026.

5. Why is the company changing its original IPO utilisation plan?

The company cited higher equipment costs, foreign exchange fluctuations, and limited commercial viability of the previously planned purchases as reasons for revising the fund utilisation.