Carysil Limited Reports Efficient Utilization of QIP Funds in Q2 FY2026
Carysil Limited's monitoring agency report for Q2 FY2026 shows effective use of Rs. 121.65 crore net proceeds from QIP. Rs. 76.94 crore utilized across capital expenditure, working capital, and general corporate purposes. Rs. 44.71 crore remains unutilized, temporarily invested in fixed deposits. ICRA Limited confirms no material deviation from stated objectives. Funds allocated for manufacturing expansion, working capital enhancement, and business growth.
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Carysil Limited , a prominent player in the kitchen and bath solutions industry, has released its monitoring agency report for the second quarter of fiscal year 2026, detailing the utilization of funds raised through its Qualified Institutions Placement (QIP). The report, prepared by ICRA Limited, the appointed monitoring agency, indicates that the company has been efficiently deploying the raised capital in line with its stated objectives.
QIP Fund Details and Utilization
The QIP, which raised a total of Rs. 125.00 crore, resulted in net proceeds of Rs. 121.65 crore after accounting for issue-related expenses. As of September 30, 2025, Carysil Limited has utilized Rs. 76.94 crore of the raised funds, leaving Rs. 44.71 crore unutilized. The company has allocated the funds across three main objectives:
- Capital Expenditure: Rs. 62.50 crore
- Working Capital Requirements: Rs. 31.25 crore
- General Corporate Purposes: Rs. 27.90 crore
Breakdown of Fund Utilization
| Objective | Allocated Amount (Rs. Crore) | Utilized Amount (Rs. Crore) | Unutilized Amount (Rs. Crore) |
|---|---|---|---|
| Capital Expenditure | 62.50 | 17.79 | 44.71 |
| Working Capital | 31.25 | 31.25 | 0.00 |
| General Corporate Purposes | 27.90 | 27.90 | 0.00 |
| Total | 121.65 | 76.94 | 44.71 |
Efficient Deployment of Funds
The monitoring agency report highlights that Carysil Limited has fully utilized the allocated funds for working capital requirements and general corporate purposes. The company has made significant progress in its capital expenditure plans, having utilized Rs. 17.79 crore for the procurement and installation of machines, equipment, and moulds for new manufacturing facilities.
Management of Unutilized Funds
The remaining Rs. 44.71 crore, earmarked for further capital expenditure, has been temporarily deployed in fixed deposits with HDFC Bank. These deposits are earning interest rates ranging from 6.25% to 6.60%, demonstrating the company's prudent financial management while awaiting full deployment of funds.
General Corporate Purposes Breakdown
The funds allocated for general corporate purposes have been utilized across various areas:
- Advertising & Publicity Expenses: Rs. 2.22 crore
- Acrysil USA Loan Payment: Rs. 2.81 crore
- Raising Funds-Right Issue CSL: Rs. 4.25 crore
- Supplier's Payment: Rs. 18.20 crore
- Sales Promotion Expenses: Rs. 0.42 crore
Conclusion
ICRA Limited's report confirms that there has been no material deviation from the stated objectives of the QIP issue. Carysil Limited's strategic allocation and utilization of funds demonstrate its commitment to expanding its manufacturing capabilities, strengthening its working capital position, and supporting overall business growth.
The efficient use of QIP funds, coupled with the company's prudent management of unutilized amounts, positions Carysil Limited well for its planned expansion and operational enhancements in the coming quarters.
Historical Stock Returns for CARYSIL
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.61% | -5.49% | -1.71% | +8.62% | +25.76% | +384.82% |
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