Monitoring Agency Report for the quarter ended March 31, 2025
KEI · price
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KEI Industries raised Rs. 2,000 crore through a Qualified Institutional Placement (QIP) in November 2024, and CARE Ratings as Monitoring Agency has reported on how the money has been used. As of March 31, 2025, the company has utilized Rs. 621.03 crore (about 31% of the QIP amount), while Rs. 1,378.97 crore remains unutilized and is parked in fixed deposits with banks like SBI, ICICI, Axis, Union Bank, etc., earning interest between 6.25% and 8%. The Rs. 275.99 crore earmarked for repayment of borrowings and Rs. 34.37 crore for issue expenses have been fully deployed. However, spending on the Sanand cable manufacturing facility (planned Rs. 1,450 crore, with Rs. 849.01 crore targeted for FY25) lagged at only Rs. 161.41 crore, and General Corporate Purpose spending (planned Rs. 150 crore in FY25) reached Rs. 149.26 crore. The company has explained the Sanand shortfall as a delay due to design revisions of the plant and building, with shifted payments now expected in FY26. The Monitoring Agency confirmed no deviation from the stated objects of the issue.
Shareholders should note that about 69% of the QIP money is still sitting in bank deposits rather than being deployed, though it is earning healthy interest. The Sanand project, which is the core growth driver funded by this QIP, has seen slower-than-planned spending due to design changes, pushing some payments into FY26 — investors should track execution progress in upcoming quarters. There is no deviation from the originally stated purpose of the funds, which is a positive compliance signal.