Finbud reports nil deviation in IPO proceeds utilization for Q4 FY26
Finbud Financial Services reported nil deviation in IPO fund usage for Q4 FY26, with ₹10.97 crore utilized out of ₹67.22 crore net proceeds. Unutilized funds of ₹60.71 crore were parked in fixed deposits and accounts. The company extended the utilization timeline for working capital and marketing activities to March 31, 2027.
*this image is generated using AI for illustrative purposes only.
Finbud Financial Services has filed its Monitoring Agency Report for the quarter ended March 31, 2026, confirming that there has been no deviation from the objects of its Initial Public Offer (IPO). The report, submitted to the National Stock Exchange of India Limited, was prepared by Infomerics Valuation and Rating Limited.
The company had raised an aggregate amount of ₹71.68 crore through its public issue of equity shares in November 2025. After deducting issue-related expenses estimated at ₹4.46 crore, the net proceeds available for utilization towards the objects of the issue stood at ₹67.22 crore. The monitoring agency verified that the utilization of proceeds has been made in accordance with the disclosures in the Offer Document.
Utilization of Proceeds
As of March 31, 2026, the company has utilized a total of ₹10.97 crore from the net proceeds. The deployment of funds across various objects during the quarter is detailed below:
| Object | Amount Utilized (₹ Crore) |
|---|---|
| Working Capital Requirement | 2.28 |
| Investment In Wholly Owned Subsidiary | 1.00 |
| Prepayment or repayment of borrowings | 1.69 |
| General Corporate Purposes | 1.60 |
| Issue related expense | 4.40 |
| Total | 10.97 |
Under the Working Capital Requirement, ₹2.28 crore was utilized through commission payments made to agents. The General Corporate Purposes allocation of ₹1.60 crore was used for the repayment or foreclosure of corporate loans. Additionally, the company invested ₹1.00 crore as a loan to its wholly-owned subsidiary, LTCV Credit Private Limited, in line with the object of the issue.
Deployment of Unutilized Funds
Pending further utilization, the company had deployed IPO proceeds aggregating to ₹60.71 crore as of March 31, 2026. These funds were primarily held in fixed deposits and monitoring accounts. The specific deployment of unutilized proceeds is as follows:
| Instrument | Amount Invested (₹ Crore) |
|---|---|
| FD created at ICICI Bank Limited | 52.00 |
| Balance in Monitoring Account | 0.77 |
| Finbud Financials Services Limited OD account | 7.94 |
| Total | 60.71 |
The report noted that the amount of ₹7.94 crore held in the company's Overdraft (OD) account was subsequently deployed into fixed deposits with HDFC Bank on May 16, 2026, to ensure compliance with applicable SEBI ICDR guidelines.
Timeline Extension
Pursuant to a Special Resolution passed by members at an Extra-Ordinary General Meeting on March 16, 2026, the company extended the timeline for utilizing unutilized IPO proceeds under the objects “Working Capital” and “Business Development & Marketing”. The deadline for these objects has been moved from the original timeline disclosed in the Prospectus to March 31, 2027. The company confirmed that there is no change in the total amount allocated towards these objects.
Historical Stock Returns for Finbud Financial Services
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -5.00% | -6.21% | -9.20% | -27.41% | -30.85% | -30.85% |
How will Finbud Financial Services accelerate the deployment of the remaining ₹56.25 crore in unutilized IPO proceeds before the extended March 2027 deadline, and what milestones can investors expect?
What is the strategic growth roadmap for LTCV Credit Private Limited, the wholly-owned subsidiary, given that it has only received ₹1 crore of the planned investment so far?
How might the slow pace of IPO fund utilization — only ~16% deployed in roughly five months — impact Finbud Financial Services' revenue growth and return on equity in FY2026-27?
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