NewsIPOHighway Infrastructure Limited Reports No Deviation in IPO Fund Utilization for September QuarterHighway Infrastructure Limited Reports No Deviation in IPO Fund Utilization for September Quarter
Highway Infrastructure Limited (HIL) has released its monitoring agency report for Q3, detailing the use of IPO funds. Out of Rs. 81.85 crores net proceeds, Rs. 44.72 crores have been utilized, with Rs. 43.84 crores for working capital and Rs. 0.88 crores for general corporate purposes. The remaining Rs. 37.13 crores are in fixed deposits. The report confirms adherence to stated objectives with no material deviations.
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Highway Infrastructure Limited (HIL) has submitted its monitoring agency report for the quarter ended September 30, detailing the utilization of funds raised through its Initial Public Offering (IPO). The report, prepared by Infomerics Valuation and Rating Limited, indicates that the company has adhered to its stated objectives without any material deviations.
IPO Fund Allocation and Utilization
HIL raised Rs. 97.52 crores through a fresh issue of shares, with net proceeds of Rs. 81.85 crores after deducting issue expenses of Rs. 15.67 crores. The company has reported the following utilization of funds during the quarter:
| Particulars | Amount (Rs. in crores) |
|---|---|
| Working Capital Requirements | 43.84 |
| General Corporate Purposes | 0.88 |
| Total Utilized | 44.72 |
| Unutilized Funds | 37.13 |
Working Capital Deployment
The company has bifurcated its working capital utilization into two segments:
- EPC – Working Capital: Rs. 13.89 crores disbursed to various counterparties for materials, services, and project execution expenses.
- Toll – Working Capital: Rs. 29.95 crores paid to toll plaza entities and project offices associated with the National Highways Authority of India (NHAI).
Unutilized Funds Management
The remaining Rs. 37.13 crores of unutilized funds have been deployed in fixed deposits with HDFC Bank, earning returns between 5% to 5.25%. This approach ensures that the idle funds continue to generate returns while awaiting deployment for their intended purposes.
Compliance and Monitoring
Infomerics Valuation and Rating Limited, the appointed monitoring agency, reported no deviation from the disclosed objects and no material deviations from the expenditures mentioned in the offer document. The company's statutory auditors, Anil Kumar Garg & Co., have certified that the funds were utilized as per the prospectus with no material deviations observed.
Management Commentary
While the report does not include direct quotes from the management, the adherence to the stated objectives and the strategic deployment of funds suggest a disciplined approach to capital allocation by Highway Infrastructure Limited.
The company's decision to park unutilized funds in fixed deposits demonstrates a prudent financial management strategy, balancing the need for liquidity with the desire for returns on idle capital.
As Highway Infrastructure Limited continues to execute its growth plans, investors and market observers will likely keep a close eye on future fund utilization reports to gauge the company's progress in achieving its stated objectives and its ability to generate returns from the capital raised through the IPO.
Historical Stock Returns for Highway Infrastructure
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +1.38% | +6.01% | -4.85% | -50.16% | -50.16% | -50.16% |
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