Index Agro Industries failed to utilize half of its IPO fund within the set deadline.
The animal feed manufacturer is now aiming for a change in the stock exchange proceeds and is demanding an extension of the deadline by at least 12 months.
To get shareholder approval, it will hold an extraordinary general meeting on July 20.
According to the company, as of May this year, Tk26.87 crore of the IPO fund remained unspent. The money was used for construction work and to set up necessary machinery and equipment to expand the business.
The funds are now to be used for another project.
The company raised Tk 50 crore from the stock exchange through an IPO in 2020.
According to the prospectus, Tk 16.11 crore and Tk 17.53 crore were allocated for machinery and equipment, buildings and civil works. By May of this year the allocated Tk6.77 crore had been spent.
In a statement, the company said that due to a delay in obtaining IPO approval from market regulators, it set up the necessary machinery, equipment and civil engineering works through bank loans and partly from its own sources.
Previously, the company had received approval from the regulator to use the IPO fund to repay a loan of Tk13.85 crore out of a total short-term loan of Tk35.49 crore.
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