Transrail Lighting’s monitoring agency, CARE Ratings, has released its report for the quarter ended December 31, 2025 (Q3 FY26), in relation to the IPO and Private Placement of Equity Shares. The report indicates fund utilization is generally in line with the offer document, although there has been a delay in the implementation of certain objects.
Monitoring Agency Overview
CARE Ratings Limited, the monitoring agency (MA), has provided an objective view of the utilization of issue proceeds by Transrail Lighting, based on information provided by the company. The report covers the quarter ended December 31, 2025 (Q3 FY26), pertaining to the IPO and Private Placement of Equity Shares. The MA confirms no conflict of interest in its monitoring and reporting activities.
Utilization of Funds
Overall, fund utilization is reported to be in line with the offer document. However, the monitoring agency notes a delay in the implementation of some objectives. As of December 31, 2025, the total amount utilized from the issue proceeds was ₹362.87 crore out of a total of ₹450.00 crore.
Key Observations
- Working Capital: ₹249.77 crore has been utilized for incremental working capital expenditure out of ₹250.00 crore allocated.
- Capital Expenditure: ₹89.85 crore has been utilized for capital expenditure out of ₹90.73 crore allocated. Expenditures include drawing & stranding machines, a hot dip galvanizing plant, and pre-engineered building work.
- General Corporate Purpose: No funds have been utilized towards general corporate purposes.
- Issue Expenses: ₹23.25 crore has been utilized for issue expenses out of ₹28.15 crore allocated.
Deployment of Unutilized Funds
The unutilized IPO proceeds have been deployed in fixed deposits with various banks, including CSB Bank, FAB Bank, and ICICI Bank, earning returns between 5.24% and 6.20%. The total unutilized amount as of December 31, 2025, stood at ₹87.13 crore.
Delays
The implementation of the object is going on from FY25. Delays were noted in the implementation of all objects, though the exact number of delay days were not ascertainable by the agency.
Source: BSE
