Cello World Limited has submitted its Monitoring Agency Report for the quarter ended December 31, 2025, concerning the utilization of proceeds from its ₹737.32 crore Qualified Institutional Placement (QIP). The report, prepared by CARE Ratings Limited, confirms that while utilization generally aligns with the offer document, there has been a delay in the implementation of the object related to setting up a new manufacturing facility. The company has adjusted timelines, extending the deployment schedule to March 2026.
Cello World Files QIP Proceeds Utilization Update
Cello World Limited announced the submission of the Monitoring Agency Report for the quarter concluding on December 31, 2025. This report details the utilization of the gross proceeds aggregating Rs. 737.32 crore raised via the Qualified Institutional Placement (QIP).
Utilization Status Overview
The total gross proceeds from the QIP were Rs. 737.32 crore. During the quarter ended December 31, 2025, the utilization amounted to Rs. 19.15 crore, bringing the total utilized amount to Rs. 694.96 crore. This leaves an unutilized balance of Rs. 42.36 crore as of the reporting date, which is temporarily invested in money market mutual funds, yielding an earning of Rs. 4.16 crore.
Key Object Progress and Deviations
The report confirms no deviation from the main objects of the issue. However, specific object timelines are noted:
- New Manufacturing Facility (Object 1): The scheduled deployment timeline of March 31, 2025, has been extended. The company passed a board resolution on May 23, 2025, to revise the completion timeline to March 2026. Utilization towards this object currently stands at Rs. 62.89 crore out of the planned Rs. 105.25 crore.
- Repayment of Borrowings (Objects 2, 3, 4): Utilization for all repayment and pre-payment objects totaling Rs. 423.00 crore has been completed.
- Augmenting Working Capital (Object 5): Utilization is complete (Rs. 79.80 crore out of a revised Rs. 79.80 crore, following an adjustment).
- General Corporate Purposes (Object 6): Utilization is complete (Rs. 108.06 crore).
- QIP Issue Expenses (Object 7): Completion noted (Rs. 24.20 crore).
Conclusion and Monitoring Agency Statement
The Monitoring Agency confirmed that utilization during Q3FY26 was routed through the Current Account of the subsidiary, requiring reliance on proforma invoices and management classification for tracking utilization towards specific objects. The agency acknowledged the timeline revision for the primary Capex object and found no major deviation in the overall utilization pattern.
Source: BSE
