Goel Construction Reports Rs 2,869.27 Lakh IPO Proceeds Utilization for Q2
Goel Construction Company Limited has utilized Rs 2,869.27 lakh from its Rs 8,107.53 lakh IPO proceeds for the quarter ended September 30. Funds were used for equipment purchase (Rs 1,148.36 lakh), debt repayment (Rs 74.47 lakh), general corporate purposes (Rs 976.04 lakh), and issue expenses (Rs 620.41 lakh). Rs 5,296.89 lakh remains unutilized, deployed in fixed deposits and bank accounts. Crisil Ratings Limited reported no deviations from stated IPO objectives, with Board-approved changes in machinery procurement.
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Goel Construction Company Limited has reported the utilization of Rs 2,869.27 lakh from its Initial Public Offering (IPO) proceeds for the quarter ended September 30. The company, which raised Rs 8,107.53 lakh through its IPO, has deployed the funds towards equipment purchase, debt repayment, and general corporate purposes.
Breakdown of Fund Utilization
The company has provided a detailed breakdown of how the IPO proceeds have been utilized:
| Purpose | Amount (Rs in lakh) |
|---|---|
| Capital expenditure for equipment and fleets | 1,148.36 |
| Repayment of outstanding borrowings | 74.47 |
| General Corporate Purposes | 976.04 |
| Issue Expenses | 620.41 |
| Total Utilized | 2,819.28 |
Unutilized Proceeds
As of September 30, Goel Construction Company has Rs 5,296.89 lakh in unutilized proceeds. These funds have been deployed in various instruments:
- Fixed Deposits with HDFC Bank: Rs 2,708.64 lakh
- Balance in Monitoring Account: Rs 2,544.06 lakh
- Balance in Public Issue Account: Rs 43.68 lakh
- Balance in Cash Credit Account: Rs 0.51 lakh
General Corporate Purposes
The company has fully utilized the Rs 976.04 lakh allocated for General Corporate Purposes. This amount has been used for funding growth opportunities, including purchases of shuttering and scaffolding materials, as well as labor hutment expenses.
Monitoring Agency Report
Crisil Ratings Limited, acting as the Monitoring Agency, has reported no deviations from the stated objectives of the IPO. The agency noted that the company has made some changes in the procurement of machinery, differing from the specifications outlined in the Prospectus. However, these changes were approved by the Board of Directors and are in line with the company's stated objectives.
Future Plans
Goel Construction Company plans to utilize the remaining IPO proceeds in subsequent quarters. The company's Board of Directors has approved the quantum of utilization towards various item heads, ensuring alignment with the disclosures provided in the offer document.
The company's judicious use of IPO proceeds and transparent reporting demonstrate its commitment to fulfilling the objectives stated in its offer document. As Goel Construction Company continues to deploy the remaining funds, investors will be keen to observe how these investments translate into the company's growth and operational efficiency in the coming quarters.
Historical Stock Returns for Goel Construction Company
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -1.19% | -3.04% | -10.39% | -3.02% | -3.02% | -3.02% |
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