Monitoring Agency Report with respect to the utilization of proceeds of the Initial Public offer (IPO) of the company for the quarter ended on 31st March, 2026.
STALLION · price
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CARE Ratings, the monitoring agency for Stallion India's Rs. 160.73 crore IPO (January 2025), has flagged material deviations. The company overspent Rs. 3.99 crore on issue expenses (budgeted Rs. 11.99 crore, actual Rs. 15.99 crore) and Rs. 3.71 crore on working capital (budgeted Rs. 95 crore, actual Rs. 98.71 crore), totaling Rs. 7.71 crore in excess utilization. This may create a shortfall for other specified objects. The two capital expenditure projects (Khalapur semiconductor facility and Mambattu refrigerant facility) face delays with Rs. 24.87 crore still unutilized out of Rs. 50.33 crore allocated. The monitoring agency also noted fund commingling through multiple current accounts and data discrepancies in management certificates. Shareholder approval via e-vote for the deviations is underway.
The excess utilization of Rs. 7.71 crore without prior shareholder approval raises governance concerns. With Rs. 24.87 crore still needed for capex projects that are delayed, investors should monitor whether the company needs to raise additional capital or reprioritize spending. The company attributes overspending to the IPO being oversubscribed 188 times.