Diamond Power Infrastructure has closed its Qualified Institutions Placement (QIP) with the allotment of 7,110,000 equity shares at ₹227 per share, aggregating to a total raise of ₹1,613.97 crore. The Management Committee of the Board of Directors approved the closure on July 28, 2026, after receiving funds in the escrow account from eligible qualified institutional buyers. This capital infusion increases the company’s paid-up equity share capital from ₹52.69 crore to ₹59.80 crore, strengthening its balance sheet for future growth initiatives.

The final issue price incorporates a discount of ₹11.92, or 4.99%, on the previously announced floor price of ₹238.92 per share. The QIP was conducted under Chapter VI of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, and Sections 42 and 62 of the Companies Act, 2013. The issue opened on July 23, 2026, and closed on July 28, 2026.

Pricing and Allotment Details

The floor price for the QIP was initially set at ₹238.92 per equity share on July 23, 2026, based on the formula prescribed under Regulation 176(1) of the SEBI ICDR Regulations. The final issue price of ₹227 represents the maximum permissible discount of up to 5% allowed under these regulations. The 'Relevant Date' for the issue was fixed as July 23, 2026, in terms of Regulation 171(b)(i).

Major Allottees and Shareholding Changes

The QIP attracted significant interest from domestic mutual funds and foreign portfolio investors (FPIs). Motilal Oswal Mutual Fund emerged as the largest allottee group, holding a PAN clubbed stake of 24.78% of the issue size through various schemes including its Dynamic Fund, Flexi Cap Fund, and Focused Fund. HDFC Mutual Fund followed with a PAN clubbed allocation of 18.59%, while Smallcap World Fund, Inc., an FPI, was allotted 10.17% of the shares.

Other notable participants included Goldman Sachs Funds (FPI) with 5.95%, VQ Fastercap Fund (AIF) with 5.58%, and Tata Mutual Fund with a PAN clubbed stake of 5.58%. HSBC Mutual Fund and Mirae Asset Mutual Fund also secured significant allocations, with PAN clubbed stakes of 6.20% each.

| Allottee Category | Key Participants | PAN Clubbed Stake (% of Issue) | | ---: | :--- | | Mutual Funds | Motilal Oswal, HDFC, Tata, HSBC, Mirae Asset | Up to 24.78% | | Foreign Portfolio Investors | Smallcap World Fund, Inc., Goldman Sachs Funds | Up to 10.17% | | Alternative Investment Funds | VQ Fastercap Fund | 5.58% |

Shareholder Approval and Compliance

The QIP received robust support during the postal ballot process managed by KFin Technologies Limited. A total of 404,603,686 votes were polled, representing 76.78% of outstanding shares. The resolution passed with 404,601,759 votes in favor and only 1,927 against it. Ashish Shah & Associates, Practicing Company Secretaries, submitted the scrutinizer’s report confirming the outcome on July 19, 2026.

In compliance with the Code of Conduct for Prevention of Insider Trading, the trading window for specified persons remained closed since July 1, 2026. It will reopen 48 hours after the declaration of unaudited financial results for the quarter ending June 30, 2026. The company filed the final placement document with stock exchanges on July 28, 2026, complying with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Diamond Power Infrastructure reported a consolidated net loss of ₹60,420.37 lacs for the fiscal year ended March 31, 2026, with its independent auditors issuing a qualified opinion on the financial statements. Naresh & Co., the statutory auditor, qualified the report primarily due to the pending completion of a physical verification and valuation exercise for the holding company’s Property, Plant & Equipment (PPE) register. This unresolved matter affects the accuracy of depreciation charges and asset valuations carried forward from the pre-NCLT period.

The qualification stems from Note 4 of the financial statements, where management disclosed that an independent agency is still finalizing the value-in-use and remaining useful lives of PPE items. Consequently, depreciation on pre-takeover assets was provided at only 20% of the applicable rate, totaling ₹1,903.69 lacs, while fresh additions incurred regular depreciation of ₹1,018.64 lacs. The total depreciation charge for the year amounted to ₹2,922.33 lacs. The auditor stated that they could not verify the correctness of PPE values or the appropriateness of the depreciation estimates until the reconciliation exercise is completed, which management expects to finish in the first quarter of the next fiscal year.

Despite the qualification, the group’s operational performance showed significant activity, driven largely by its wholly-owned subsidiary, Dicabs Nextgen Special Alloys Private Limited. The subsidiary, which commenced operations during the year, reported revenues of ₹95,337.82 lacs and total assets of ₹33,463.63 lacs as of March 31, 2026. In contrast, the holding company’s standalone contribution to the consolidated profit or loss was a loss of ₹61,456.19 lacs. The subsidiary’s strong turnover helped offset some of the holding company’s losses, resulting in a consolidated net loss that was lower than the holding company’s standalone figure.

Financial Position and Liabilities

The group’s balance sheet reflects substantial liabilities inherited from its corporate insolvency resolution process (CIRP). As per the NCLT-approved Resolution Plan implemented in September 2022, the company issued unsecured redeemable bonds with a present value of ₹4,557.23 lacs and a deferred liability of ₹1,85,370.24 lacs. Long-term borrowings stood at ₹2,48,765.22 lacs, including secured bank term loans and unsecured inter-corporate deposits. The company also reported lease liabilities of ₹650.69 lacs and other financial liabilities of ₹609.82 lacs.

Key Audit Matters and Inventory Risks

Beyond the PPE qualification, auditors identified the existence and valuation of returnable drums as a Key Audit Matter. These drums, used for dispatching cables, constituted approximately 17% of the holding company’s total inventory value. A significant portion remained at customer premises, with return cycles ranging from 45 days to six months. While the company is entitled to raise debit notes for drums not returned within six months, auditors noted instances where debit notes were withheld due to business relationship considerations. The audit team evaluated management’s rationale for these delays and assessed the adequacy of provisions for non-recoverable drums.

What the Numbers Show

The divergence between the subsidiary’s robust revenue generation and the holding company’s substantial losses highlights the transitional nature of Diamond Power Infrastructure’s post-insolvency operations. While the new management has successfully ramped up production at the subsidiary, the holding company continues to grapple with legacy accounting complexities, particularly regarding asset valuation and depreciation. The 20% depreciation cap on pre-NCLT assets suggests a conservative approach to expense recognition pending final verification, which may impact future profitability metrics once the full value-in-use is crystallized. Investors should monitor the completion of the PPE reconciliation exercise, as any adjustments could materially affect the carrying value of assets and future depreciation charges.