Regulation 32(6) Monitoring Agency Report on the Utilization of Proceeds Raised through Qualified Institutional Placement (QIP) for the Quarter Ended March 31, 2025
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Centum Electronics raised Rs 2,100 million (net Rs 1,999.47 million) through a Qualified Institutional Placement of equity shares between March 10-13, 2025. As of March 31, 2025, the company has utilized Rs 1,102.34 million (about 55%) of the net proceeds, entirely towards repayment/prepayment of outstanding borrowings. The remaining Rs 897.13 million is unutilized and parked in fixed deposits (Rs 450 million earning 6.60-7.25%) and bank/monitoring accounts. No amount has been deployed yet for capital expenditure on new equipment (Rs 349.68 million) or general corporate purposes (Rs 499.87 million), with the company citing insufficient time for deployment. The Monitoring Agency (CRISIL Ratings) reported no deviation from stated objects and no conflicts of interest.
The QIP has so far primarily strengthened Centum's balance sheet by repaying over Rs 1,100 million of debt, which is a positive deleveraging signal. However, the delay in deploying proceeds for capex and general corporate purposes means the full growth and operational benefits of the fundraise are yet to be realized, which investors should track in coming quarters.