NewsVardhman Special Steels Files Q4FY26 Monitoring Agency Report for Preferential Issue ProceedsVardhman Special Steels Files Q4FY26 Monitoring Agency Report for Preferential Issue Proceeds
Vardhman Special Steels Limited filed its Monitoring Agency Report for the quarter ended March 31, 2026, covering utilization of proceeds from a Preferential Issue of Rs 3,849,088,060. CRISIL Ratings confirmed total utilization of Rs 1,839,460,281 with no material deviations, while unutilized proceeds of Rs 2,009,627,779 were deployed across fixed deposits and mutual funds generating earnings of Rs 59,907,000.
*this image is generated using AI for illustrative purposes only.
Vardhman Special Steels Limited has filed its Monitoring Agency Report for the quarter ended March 31, 2026, with BSE Limited and the National Stock Exchange of India. The submission, dated May 04, 2026, was made pursuant to Regulation 32(6) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with Regulation 162A of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018. The report was prepared by Crisil Ratings Limited, the appointed Monitoring Agency, in accordance with the Monitoring Agency Agreement dated June 04, 2025.
Issue Overview
The report pertains to the utilization of proceeds raised by the company through a Preferential Issue of equity shares. The key details of the issue are summarised below:
| Parameter: | Details |
|---|---|
| Issue Period: | 4th July, 2025 |
| Type of Issue: | Preferential Issue (PI) |
| Type of Securities: | Equity Shares |
| Issue Size: | Rs 3,849,088,060 |
| Promoter: | Vardhman Textiles Limited |
| Industry/Sector: | Steel |
Utilization of Issue Proceeds
The Monitoring Agency confirmed that all utilization during the quarter is as per the disclosures in the Notice to Shareholders, with no material deviations reported. The following table presents the progress in deployment of issue proceeds across the three designated objects as at March 31, 2026:
| Item Head: | Amount as Proposed (Rs) | Utilized at Beginning of Quarter (Rs) | Utilized During Quarter (Rs) | Utilized at End of Quarter (Rs) | Total Unutilized (Rs) |
|---|---|---|---|---|---|
| Capital expenditure – greenfield steel plant, Ludhiana, Punjab: | 1,349,088,060 | - | - | - | 1,349,088,060 |
| Capital expenditure – existing plant: | 1,000,000,000 | 191,475,055 | 147,985,226 | 339,460,281 | 660,539,719 |
| Repayment of working capital borrowing: | 1,500,000,000 | 1,500,000,000 | - | 1,500,000,000 | - |
| Total: | 3,849,088,060 | 1,691,475,055 | 147,985,226 | 1,839,460,281 | 2,009,627,779 |
A note accompanying the report states that during the quarter ended March 31, 2026, the company transferred Rs 12,91,02,888 from its monitoring account to its current accounts for utilization towards capital expenditure requirements at the existing plant, for operational ease. The transferred proceeds were fully utilized as at the end of the reported quarter.
Deployment of Unutilized Proceeds
The unutilized proceeds of Rs 2,009,627,779 were deployed across fixed deposit and mutual fund instruments as at March 31, 2026. The details of these deployments, including earnings and market values, are as follows:
| Instrument: | Amount Invested (Rs) | Maturity Date | Earnings as on March 31, 2026 (Rs) | Return on Investment | Market Value (Rs) |
|---|---|---|---|---|---|
| Fixed Deposit – ICICI Bank: | 499,088,060 | 01.04.2026 | 22,438,315 | 6.00% | 521,526,375 |
| SBI Savings Fund – Direct Growth: | 450,000,000 | - | 12,009,833 | 5.52% | 462,009,883 |
| Bandhan Money Market Fund – Direct Plan: | 406,707,446 | - | 11,465,010 | 5.82% | 418,172,456 |
| Kotak Money Market – Direct Growth: | 450,000,000 | - | 12,436,159 | 5.72% | 462,436,159 |
| SBI Liquid Fund Direct Growth: | 203,832,273 | - | 1,557,632 | 4.54% | 205,389,905 |
| Total: | 2,009,627,779 | - | 59,907,000 | - | 2,069,534,778 |
Monitoring Agency Observations
Crisil Ratings Limited, in its capacity as Monitoring Agency, confirmed the following key observations for the quarter ended March 31, 2026:
- Utilization compliance: All utilization during the quarter is as per the disclosures in the Notice to Shareholders.
- Deviation from objects: Not applicable.
- Range of deviation: Not applicable.
- Material deviations: No major deviation observed over earlier monitoring agency reports.
- Means of finance: No change in the means of finance for the disclosed objects.
- Delay in implementation: Not applicable, as confirmed on the basis of a management undertaking and certificate dated April 24, 2026, issued by M/s S.S. Periwal & Co., Chartered Accountants (Firm Registration Number: 001021N).
- General Corporate Purpose utilization: Not applicable.
The report was signed by Shounak Chakravarty, Director, Ratings (LCG), on behalf of Crisil Ratings Limited. The certificate relied upon for the preparation of this report was issued on April 24, 2026, by M/s S.S. Periwal & Co., Chartered Accountants (Firm Registration Number: 001021N), Peer Reviewed Independent Chartered Accountants. The filing was submitted to the exchanges by Sonam Dhingra, Company Secretary of Vardhman Special Steels Limited.
Historical Stock Returns for Vardhman Special Steels
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.43% | -4.86% | +23.47% | -5.52% | +19.23% | +193.95% |
When does Vardhman Special Steels plan to begin deploying the Rs 1.35 billion allocated for the greenfield steel plant in Ludhiana, and what regulatory or land acquisition milestones must be achieved first?
How will the completion of the existing plant capex expansion impact Vardhman Special Steels' production capacity and revenue outlook over the next two to three years?
Given that over 52% of the issue proceeds remain unutilized as of March 2026, could there be a risk of SEBI scrutiny or shareholder concern regarding the pace of capital deployment?
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