PG Electroplast’s monitoring agency, CRISIL Ratings, has issued a report for the quarter ended September 30, 2025, regarding the utilization of proceeds from its Qualified Institutional Placement (QIP). The report indicates that the funds were primarily used for working capital requirements and capital expenditure in the subsidiary. The monitoring agency relied on management representations and certifications for its assessment.
QIP Proceeds Utilization
According to a report from CRISIL Ratings Limited, the proceeds from PG Electroplast’s Qualified Institutional Placement (QIP) have been utilized as intended. The primary uses were to cover working capital needs and capital expenditure within the company’s subsidiary during Q2 2025. The report, dated November 14, 2025, confirms adherence to the disclosures made in the offer document.
Key Findings
CRISIL’s report highlights several key aspects of the fund utilization:
- Proceeds were directed towards working capital and capital expenditure requirements of the subsidiary.
- As of September 30, 2025, ₹1,036.03 crore of the ₹1,477.56 crore net proceeds had been utilized.
- The unutilized amount of ₹441.53 crore is primarily held in fixed deposits and a current account.
Project-Specific Expenditure
A significant portion of the QIP proceeds was allocated to specific projects, including:
- ₹618.48 crore invested in the wholly-owned subsidiary, PG Technoplast, for funding working capital requirements.
- ₹98.37 crore towards expansion of the manufacturing and warehousing facility.
- ₹35.26 crore on constructing a new building at SP5-4.
- ₹39.63 crore towards purchase of new equipment and machinery.
Unutilized Funds
As of September 30, 2025, the company had unutilized funds amounting to ₹441.53 crore. These funds are deployed in the following manner:
- Fixed Deposits: ₹441.53 crore is invested in fixed deposits with Yes Bank.
- Current Account: A small balance of ₹0.01 crore is held in the company’s current account for QIP proceeds.
Source: BSE