CG Power Confirms No Deviation in QIP Fund Utilisation for Q4FY26
CG Power and Industrial Solutions Limited disclosed no deviation in the utilisation of Rs. 3,000 Crores raised via QIP, with net proceeds of Rs. 2,973.97 Crores after issue expenses of Rs. 26.03 Crores. A total of Rs. 354.77 Crores has been utilised across OSAT facility investment, capital expenditure, and general corporate purposes, as confirmed by the Audit Committee on May 6, 2026.
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CG Power and Industrial Solutions Limited has formally communicated to the stock exchanges that there has been no deviation or variation in the utilisation of funds raised through a Qualified Institutions Placement (QIP) during the quarter ended March 31, 2026. The disclosure was made in compliance with Regulation 32 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The statement was reviewed and approved by the company's Audit Committee during their meeting held on May 6, 2026, and was signed by Sanjay Kumar Chowdhary, Company Secretary and Compliance Officer.
Fund Raising Details
The company successfully raised capital through a QIP route, with the issue opening on June 30, 2025, and closing on July 3, 2025. The allotment of equity shares was finalized on July 4, 2025. The gross amount raised through this exercise was Rs. 3,000 Crores. After deducting issue-related expenses amounting to Rs. 26.03 Crores, the net proceeds available for utilisation stood at Rs. 2,973.97 Crores. CARE Ratings Limited was appointed as the monitoring agency for the utilisation of these funds.
Utilisation of Proceeds
The funds were allocated for specific purposes, including investment in a subsidiary, capital expenditure for the company, acquisitions and inorganic growth opportunities, and general corporate purposes. As of the reporting quarter, a total of Rs. 354.77 Crores has been utilised from the net proceeds. The deployment of funds is strictly in accordance with the objects stated at the time of the fund-raising exercise, with no deviations recorded. The following table presents the allocation and utilisation details:
Allocation and Utilisation Table
| Original Object | Modified Object, if any | Original Allocation (Rs. in Crores) | Modified Allocation, if any | Funds Utilised (Rs. in Crores) | Amount of Deviation/Variation | Remarks |
|---|---|---|---|---|---|---|
| Investment in Subsidiary, CG Semi Private Limited, for OSAT facility capital expenditure | Not Applicable | 1,062.85 | Not Applicable | 184.67 | 0.00 | — |
| Funding capital expenditure — a) Setting up of a power transformer plant | Not Applicable | 601.78 | Not Applicable | 119.87 | 0.00 | — |
| Funding capital expenditure — b) Development of a leasehold land | Not Applicable | 255.20 | Not Applicable | — | 0.00 | — |
| Acquisitions and inorganic growth opportunities | Not Applicable | 330.00 | Not Applicable | — | 0.00 | — |
| General corporate purposes | Not Applicable | 724.14 | Not Applicable | 50.23 | 0.00 | — |
| Total | 2,973.97 | 354.77 |
Audit Committee Review
The Audit Committee reviewed the statement of deviation or variation in its meeting on May 6, 2026. The committee confirmed that the funds have been utilised strictly for the purposes outlined in the fund-raising documents. The company stated that there were no changes in the terms of any contracts referred to in the fund-raising document, nor were there any deviations in the objects or the amount of funds utilised compared to the original disclosures.
Historical Stock Returns for CG Power & Industrial Solutions
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +3.64% | +4.06% | +25.00% | +17.25% | +43.55% | +918.49% |
Given that only Rs. 354.77 Crores of the Rs. 2,973.97 Crores net proceeds have been utilised so far, what is CG Power's expected timeline for deploying the remaining funds, particularly for acquisitions and inorganic growth opportunities?
How will the completion of the OSAT facility for CG Semi Private Limited position CG Power in India's semiconductor packaging ecosystem, and what revenue contributions can be expected once the facility becomes operational?
With Rs. 330 Crores earmarked for acquisitions and inorganic growth but no utilisation recorded yet, which sectors or geographies is CG Power likely targeting for potential M&A activity?
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