Techno Electric & Engineering Company Limited reports a deviation in the utilization of funds raised through its QIP. Due to the cancellation of the original government project, ₹1650 Million of the QIP funds was reallocated to the construction of Chennai Data Centre. The Audit Committee approved the deviation because it aligns with the objects outlined in the placement document. The report is for the quarter ended September 30, 2025.
QIP Funds Re-allocation
Techno Electric & Engineering Company Limited announced a deviation in the use of funds raised via Qualified Institutional Placement (QIP) which occurred on July 19, 2024, with a total amount raised of ₹12500 Million.
Reason for Deviation
The deviation arose due to the cancellation of the original project by the government. As the company states, there was no change in the objects; therefore, no shareholder approval was required. The funds, initially allocated for the North Eastern Region Generation Scheme-I (NERGS-I) project, have been redirected.
New Project Allocation
The funds initially allocated to the NERGS-I project, specifically the establishment of a new 400 kV switching station at Bokajan, Assam, and the line-in-line-out of both circuits of Misa (POWERGRID) – New Mariani (POWERGRID) 400 kV D/c line at Bokajan, Assam are now being reallocated. ₹1650 Million of the allocated ₹2000 Million has been used for:
Chennai Data Centre Project
The reallocated funds are being utilized for the construction of the Chennai Data Centre, including installation, testing, and commissioning of GIS substations. The data reflects the deviation for the quarter ended September 30, 2025.
Audit Committee Review
The deviation was approved by the Audit Committee, with no further comments, as it was determined to be within the scope of the original placement document’s objectives.
Source: BSE
