CELLO · price
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Awaiting price reaction for this filing.
CARE Ratings, the Monitoring Agency, has submitted its report for the quarter ended March 31, 2025, on the use of proceeds from the company's Rs. 737.32 crore Qualified Institutional Placement (QIP) conducted in July 2024. Out of the total proceeds, Rs. 645.67 crore has been utilized so far, leaving Rs. 91.65 crore unutilized, which is parked in Tata Liquid Fund and bank accounts of the company and its subsidiary. All objects except one have been fully deployed — repayment of subsidiary/promoter borrowings (Rs. 236.96 crore), debt to Wim Plast (Rs. 100 crore), promoter loan repayment (Rs. 83.05 crore), working capital augmentation (Rs. 79.80 crore), general corporate purposes (Rs. 108.06 crore), and QIP issue expenses (Rs. 24.20 crore) are complete. The key lag is in the Rs. 105.25 crore earmarked for setting up a new stainless steel bottles and insulatedware facility in subsidiary Cello Consumerware, where only Rs. 13.61 crore has been spent on building construction and steel plant purchase. The board has extended the project timeline by 9-12 months due to prevailing market conditions, with construction completion now expected in Q2 FY26 and production starting in Q3 FY26.
No material deviation from stated objects, but investors should note the 9-12 month delay in the subsidiary capex project, the largest deployment target of the QIP. Management maintains the revised schedule does not affect the long-term viability of the new facility, and unutilized funds continue to earn returns in liquid mutual funds.