Varroc Engineering Limited has filed its compliance statement with stock exchanges, confirming proper utilization of Commercial Paper proceeds raised during FY 2025-26. The company reported no deviation or variation in fund utilization from the objectives stated in its offer documents.

Commercial Paper Issuances During FY 2025-26

The company raised funds through four separate Commercial Paper issuances totaling Rs. 200 Cr during the financial year:

Regulatory Compliance Statement

In its submission dated April 1, 2026, the company confirmed compliance with Regulation 32 and 52 of SEBI Listing Regulations and SEBI Circular No. CIR/CFD/CMD1/162/2019 dated December 24, 2019. The statement was signed by Company Secretary & Compliance Officer Anil Ghatiya and submitted to both NSE and BSE.

Fund Utilization Details

The compliance report indicates that all Commercial Paper proceeds were fully utilized for purposes stated in the respective offer documents and General Information Documents. The company confirmed no deviation or variation in fund utilization during the quarter and financial year ended March 31, 2026.

Additional Fund Raising Activities

The company clarified that apart from the Commercial Paper issuances, there was no other fund-raising activity during FY 2025-26. The submission also referenced that Non-Convertible Debentures issued on September 7, 2023, were fully redeemed on March 6, 2026, with proceeds utilized as per stated objectives.

The compliance statement demonstrates Varroc Engineering's commitment to transparent financial reporting and adherence to regulatory requirements for fund utilization disclosure.

Varroc Engineering Limited has announced the complete redemption of its ₹250 crore non-convertible debentures (NCDs), exercising the call option to retire the debt securities ahead of their scheduled maturity. The redemption was completed on March 6, 2026, as disclosed in the company's regulatory filing under Regulation 54(2) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Debenture Details and Terms

The redeemed securities were secured rated listed senior redeemable non-convertible debentures with specific terms and conditions that provided flexibility for early redemption.

Security and Asset Coverage

The NCDs were adequately secured by way of exclusive charge on specific identified movable fixed assets of the company. According to the regulatory disclosure, the asset cover with respect to these NCDs, including interest obligation, was higher than the requirement of 1.10 times as specified in the Debenture Trust Deed as on and till the date of redemption.

Early Redemption Strategy

The company opted to exercise its call option, enabling early redemption of the entire debenture issue. By redeeming these securities ahead of the September 2028 maturity date, Varroc Engineering has eliminated this debt obligation from its books. The early redemption demonstrates the company's commitment to optimizing its capital structure and reducing financial leverage when market conditions permit.

Regulatory Compliance

This disclosure was made pursuant to Regulation 54(2) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 for the March 2026 quarter. The communication was sent to both the National Stock Exchange of India Limited and BSE Limited on April 1, 2026, ensuring full compliance with regulatory guidelines for listed privately placed debt securities.

Current Status

Following the March 6, 2026 redemption, the outstanding amount for these NCDs stands at nil. The complete retirement of this debt issue represents a significant reduction in the company's debt portfolio and interest obligations. The securities maintained adequate security coverage throughout their tenure until redemption.

Source: None/Company/INE665L01035/c1793bf1-fb0e-4c98-afe3-3b5176bfd925.pdf