Index Agro Industries' Tk26.87cr IPO fund unspent
Index Agro Industries has failed to utilise half of its initial public offering (IPO) fund within the stipulated time.
Now, the animal feed producer seeks to change the IPO proceeds and wants an extension of time by at least 12 months.
To secure approval from shareholders, it will hold an extra-ordinary general meeting on 20 July.
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According to the company, till May this year, Tk26.87 crore of its IPO fund remained unspent. The money was allocated for construction work and setting up necessary machinery and equipment to expand the business.
It now seeks to use the funds for another project.
The company raised Tk50 crore from the stock market through an IPO in 2020.
According to its prospectus, Tk16.11 crore and Tk17.53 crore were allotted for machinery and equipment, building, and civil construction. Till May this year, it spent the Tk6.77 crore allotted.
In an explanation, the company said that due to a delay in obtaining IPO consent from the market regulator, it has set up the required machinery, equipment, and building and civil construction works through bank borrowings and partially from its own sources.
Earlier, it got consent from the regulator to use the IPO fund to repay a loan of Tk13.85 crore out of a total short-term loan amounting to Tk35.49 crore.
