Sugs Lloyd Limited , a player in the electrical equipment and capital goods sector, has submitted its monitoring agency report for the half year ended September 30, 2025, demonstrating compliant utilization of its Initial Public Offer (IPO) proceeds.

The company, which raised INR 85.66 crores through its IPO conducted from August 29 to September 2, 2025, has reported the following utilization of funds:

Utilization Breakdown

Deployment of Unutilized Funds

Sugs Lloyd has strategically deployed the unutilized portion of the IPO proceeds:

• INR 55.00 crores has been placed in fixed deposits with ICICI Bank, earning a 4% return and maturing on March 5, 2026.
• The remaining INR 1.92 crores is held in current accounts.

Monitoring Agency's Report

Acuite Ratings and Research Limited, the appointed monitoring agency, has reported no deviation from the disclosed objects. The agency confirmed that the utilization aligns with the offer document.

Company Background

Sugs Lloyd Limited operates in the electrical equipment and capital goods sector, with Mrs. Priti Shah as the promoter. The company's shares are listed on the SME Platform of BSE Limited.

Financial Performance

The company's unaudited consolidated financial results for the half year ended September 30, 2025, show:

• Revenue from Operations: INR 12,303.06 lakhs
• Total Income: INR 12,414.62 lakhs
• Net Profit: INR 1,183.36 lakhs
• Earnings Per Share (Basic and Diluted): INR 5.10 (not annualized)

Management Changes

The company has also announced several changes in its management structure, subject to shareholders' approval:

1. Mr. Kapil Dev Marwah's designation changed from Whole Time Director to Executive Director.
2. Mrs. Priti Shah's designation changed from Managing Director to Whole Time Director.
3. Mr. Santosh Kumar Shah's designation changed from Non-Executive Director to Managing Director and Executive Chairman.

These changes reflect the company's evolving leadership structure as it navigates its post-IPO phase.

The compliant utilization of IPO proceeds and strategic deployment of unutilized funds demonstrate Sugs Lloyd Limited's commitment to transparent financial management and growth-oriented practices.

Sugs Lloyd Limited (SLL), a company specializing in solar energy, electrical transmission and distribution, and civil EPC projects, has received credit ratings from CARE Ratings Limited for its bank facilities totaling ₹125 crore. The ratings reflect the company's growing operations, healthy profitability, and strong order book position.

Credit Ratings Breakdown

Key Strengths

1. Experienced Promoters: SLL benefits from the leadership of Priti Shah and Santosh Kumar Shah, who have around two decades of experience in the electrical transmission and distribution industry.

2. Growing Operations: The company's total operating income (TOI) grew at a compound annual growth rate (CAGR) of 97.81% for four years, reaching ₹176.20 crore, up from ₹65.13 crore in the previous year.

3. Healthy Profitability: SLL maintained a comfortable PBILDT (Profit Before Interest, Lease, Depreciation, and Tax) margin of 14.63%.

4. Strong Order Book: As of July 31, SLL's order book stood at ₹470.94 crore, approximately 2.67 times its gross sales, providing medium-term revenue visibility.

5. Improved Capital Structure: The company's capital structure improved significantly following an equity infusion of ₹85.65 crore from IPO proceeds in September.

Challenges

1. Working Capital Intensive Operations: The company's working capital cycle stood at 112 days, primarily due to extended receivable days of 116 days.

2. Competitive Industry: SLL operates in a tender-based business environment with intense competition, which may pressure profitability margins.

Financial Performance

A: Audited, UA: Unaudited

Outlook

CARE Ratings has assigned a 'Stable' outlook to Sugs Lloyd Limited, indicating confidence in the company's ability to maintain its financial performance. The ratings agency believes that SLL will continue to benefit from the experience of its promoters in the industry.

While the company faces challenges such as working capital intensity and competitive pressures, its strong order book and improved capital structure post-IPO provide a solid foundation for future growth.