What’s new

• Board approved reallocation of ₹63.74 lakhs from IPO proceeds to buy crochet knitting, coiling, and stitching machines.
• Original plans abandoned due to rising costs, currency swings, and improved power supply.
• Company will enter zipper chain and finished zipper manufacturing, adding a value-added product line.

Why it matters

For a nano-cap with a ₹32 cr market cap, ₹63.74 lakhs is a material shift, about 2% of market cap. The move diversifies Sihora beyond textiles into a higher-value product. But execution risk is real, and shareholder approval is still needed.

What we’re watching

• Shareholder vote via postal ballot overseen by NSDL.
• Execution timeline for new machinery installation and production.
• Impact on revenue mix and margins from zipper operations.

The full read

Sihora Industries raised money from its IPO to buy specific machinery. Those plans are off the table. The board has decided to spend the remaining ₹63.74 lakhs (about 2% of its ₹32 crore market cap) on crochet knitting, coiling, and stitching machines. The goal is manufacturing zipper chains and finished zippers, a new value-added line for a company that has so far stuck to textiles. The original equipment was shelved because costs rose, currencies moved, and the power supply improved, making the old plan commercially unviable. For a nano-cap with a P/E of 33 and ROE of 36%, this is a material pivot. It diversifies revenue but puts execution front and centre. Shareholders get to vote via postal ballot. The outcome will decide whether the cash goes to work as intended.

Primary source: BSE · NSE