JK Tyre & Industries Ltd. has submitted its Monitoring Agency Report for the quarter ended December 31, 2025, concerning the utilization of proceeds from its Qualified Institutions Placement (QIP). The report, issued by India Ratings & Research Private Limited, confirms no material deviation from the utilization objects outlined in the Offer Document. The total QIP size was INR 500.00 Crores, and the utilization details confirm progress across capital expenditure, working capital, and General Corporate Purposes.
Submission of Monitoring Agency Report
JK Tyre & Industries Ltd. has filed the required Monitoring Agency Report for the quarter ending December 31, 2025, with both the BSE Ltd. and the National Stock Exchange of India Ltd. This compliance filing relates to the utilization of funds raised through the Qualified Institutions Placement (QIP).
QIP Overview and Confirmation
The QIP, conducted between December 19, 2023, and December 22, 2023, raised a total of INR 500.00 Crores by issuing 1,44,92,749 Equity Shares at ₹345.00 per share. The Monitoring Agency, India Ratings & Research Private Limited, confirmed that based on management undertakings and the Statutory Auditor’s certificate dated February 6, 2026, no deviation from the objects has been observed.
Utilization of Proceeds Breakdown
The report details the deployment of the INR 500.00 Crores across three primary categories:
- Capital Expenditure: Originally allocated ₹350.00 Crores. Utilization stood at ₹292.17 Crores by the end of the quarter, with ₹57.83 Crores remaining unutilized.
- Working Capital Requirements: Originally allocated ₹25.00 Crores. The full amount was utilized by the end of the quarter.
- General Corporate Purposes (GCP): Originally allocated ₹116.10 Crores. Utilization reached ₹79.49 Crores, leaving a balance.
Total funds utilized amounted to ₹337.68 Crores, resulting in ₹162.32 Crores remaining unutilized as of December 31, 2025.
Surplus Allocation and Fund Parking
A notable point indicated is the management of issue expenses. The actual QIP issue expense incurred was ₹8.40 Crores against the estimated ₹8.90 Crores, creating a surplus of ₹0.50 Crore. This surplus was reallocated to GCP, increasing its total allocation from ₹116.10 Crores to ₹116.60 Crores.
The unutilized portion of the funds totaling ₹163.28 Crores (including accrued earnings) was temporarily parked in Fixed Deposits (FDs) with HDFC Bank, earning an annualized return of up to 7.76%. The company intends to deploy these funds toward the objects by the end of March 2026.
Implementation Timeline
The stipulated completion date for all primary objects—Capital Expenditure, Working Capital, and General Corporate Purposes—remains the end of March 2026, with no reported delays as of the reporting date.
Utilization for General Corporate Purposes (GCP)
The utilization under GCP amounting to ₹37.11 Crores was specifically directed towards Debt Reduction (Working Capital Borrowings), as confirmed by management undertaking and bank statements.
Source: BSE
