Monitoring Agency Report for the quarter ended June 30, 2025
KEI · price
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Awaiting price reaction for this filing.
KEI Industries raised Rs. 2,000 crore via a Qualified Institutions Placement (QIP) in November 2024, allotted on November 28, 2024. CARE Ratings, the monitoring agency, reports Rs. 913.92 crore has been utilized so far, leaving Rs. 1,086.09 crore unutilized and parked in fixed deposits across banks (Axis, BOB, ICICI, Union, IDBI, Yes) earning 6.0–7.5% interest. The full Rs. 275.99 crore earmarked for debt repayment and Rs. 34.37 crore for issue expenses have been fully spent. For the Sanand cable manufacturing facility (originally budgeted Rs. 1,450 crore), only Rs. 454.29 crore has been deployed, with Rs. 292.88 crore incurred during Q1FY26. General corporate purpose funds (Rs. 239.64 crore allocated) have seen Rs. 149.26 crore used, mostly for raw material purchase. The report flags no deviation from stated objects, but notes a delay in the Sanand project due to design revisions extending the delivery schedule for plant and machinery by a few months.
No material deviation from stated use of funds, which is a positive signal for investors. However, slower-than-planned capex spend on the Sanand manufacturing facility is a mild concern and may push the full ramp-up of new capacity into later quarters. The large unutilized corpus is conservatively parked in bank FDs, generating meaningful interest income in the interim.