Pajson Agro India544657Audit report shared

Monitoring agency report flags GCP exceeding ₹10 crore cap in IPO proceeds use

Pajson Agro India has shared the monitoring agency report by CARE Ratings for the quarter ended September 30, 2026, on the use of its ₹74.45 crore IPO proceeds.

By ScoutQuest · Tue 3 Nov 2026, 4:38 PM IST · 3 min read

₹8.98 croreIssue expenses in offer document

Actual issue expenses₹7.02 crore

Balance issue expenses GCP₹1.96 crores

Issue expenses in offer document ₹8.98 crore: Actual issue expenses ₹7.02 crore, Balance issue expenses GCP ₹1.96 crores.

GCP allocation vs cap: ₹10.43 crore against a cap of ₹10 crore
Amount moved to GCP: ₹1.96 crore of unspent issue expenses
Funding mix change: internal sources of ₹17.88 crore replaced by ₹20.00 crore bank term debt

What this update is

Pajson Agro India Ltd has submitted the Monitoring Agency Report prepared by CARE Ratings Limited for the quarter ended September 30, 2026. It covers how the money raised in the company's Initial Public Offer has been used. The issue size was ₹74.45 crore, the issue period ran from December 11, 2025 to December 15, 2025, and the securities issued were equity shares.

What the monitoring agency flagged

To the question of whether all utilisation is as per the disclosures in the offer document, CARE's reply is No.
The offer document allowed unspent money from one object to be used towards general corporate purposes (GCP), but only up to 15% of the amount raised or ₹10 crores, whichever is less.
A board resolution dated December 26, 2025 moved ₹1.96 crores of balance issue expenses to GCP, raising the GCP object to ₹10.43 crores.
CARE states that this revised utilisation exceeds the stipulated cap of ₹10 crores, with no corresponding approval on record for the excess.
The range of deviation is given as up to 10%.

The company's explanation

Issue expenses were stated at ₹8.98 crore in the offer document on an approximate basis; the actual expense was ₹7.02 crore.
The remaining ₹1.96 crore was therefore moved towards GCP, which the company says was authorised by the board vide resolution dated 26.12.2025.

Change in the means of finance

The company had initially proposed to finance the project through internal sources aggregating ₹17.88 crore.
That has been changed by replacing the proposed utilisation from internal accruals with term debt of ₹20.00 crore from a bank.
Shareholders approved the change through a special resolution passed at an Extra Ordinary General Meeting held on July 16, 2026.
The company's stated reason is to qualify for a Capital Subsidy Scheme of the Government of Andhra Pradesh, which requires a portion of the project cost to be financed through institutional borrowings. The company says this is intended to reduce the effective project cost and improve financial viability, and that the change is limited to the means of finance and does not alter the objects of the issue, the utilisation of IPO proceeds, or the overall project cost.

Other points recorded

No major deviation has been observed over the earlier monitoring agency reports.
On whether all government and statutory approvals related to the objects are in place, the reply is Yes. Pre-construction approvals for the Vizianagaram facility are in place, and the company has secured permission from the Irrigation Department in addition to the Consent to Establish obtained earlier.

What this means for a retail investor

This is a periodic monitoring report on the use of IPO money, not a fresh fundraise or a change in the company's business.
Two items stand out: the monitoring agency's observation that the GCP allocation went above the stated cap without an approval on record, and the shift of project funding from internal accruals to ₹20.00 crore of bank term debt.
Borrowed money carries interest cost; the company links the borrowing to a government subsidy it says lowers the effective project cost. The update records both views, and the monitoring agency's observation remains on record.

15%Cap on GCP as share of amount raised

Cap on GCP as share of amount raised: 15%.

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