NewsIPOVikran Engineering Reports No Deviation in Rs 721 Crore IPO Fund Utilization for Q2 FY26Vikran Engineering Reports No Deviation in Rs 721 Crore IPO Fund Utilization for Q2 FY26
Vikran Engineering Limited's monitoring agency report for Q3 2025 shows utilization of Rs 205.77 crore from its Rs 721 crore IPO. Rs 158.47 crore was used for working capital, Rs 47.30 crore for issue expenses, with no spending on general corporate purposes. The remaining Rs 515.23 crore is invested in fixed deposits. BSE withdrew a previously levied penalty for non-compliance with SEBI regulations.
*this image is generated using AI for illustrative purposes only.
Vikran Engineering Limited has submitted its monitoring agency report for the quarter ended September 30, 2025, revealing the utilization of Rs 205.77 crore from its Rs 721 crore Initial Public Offering (IPO) proceeds. The company reported no deviations from its stated objectives, demonstrating a commitment to transparency and adherence to its financial plans.
Fund Utilization Breakdown
The report, issued by Care Ratings Limited as the appointed monitoring agency, provides a detailed breakdown of the fund utilization:
| Objective | Amount Utilized (Rs Crore) | Amount Remaining (Rs Crore) |
|---|---|---|
| Working Capital Requirements | 158.47 | 382.53 |
| Issue-Related Expenses | 47.30 | 2.73 |
| General Corporate Purposes | 0.00 | 129.97 |
| Total | 205.77 | 515.23 |
Working Capital Deployment
Vikran Engineering has strategically deployed Rs 158.47 crore towards its working capital requirements. The funds were transferred to multiple cash credit accounts, which were subsequently utilized for various operational needs, including payments to suppliers, tax obligations, salaries, and working capital demand loan (WCDL) payments.
Issue Expenses and General Corporate Purposes
The company incurred Rs 47.30 crore in issue-related expenses, slightly lower than the initially allocated Rs 50.03 crore. No funds have been utilized from the Rs 129.97 crore earmarked for general corporate purposes during this quarter.
Unutilized Funds Management
The remaining Rs 515.23 crore of the IPO proceeds has been invested in fixed deposits with Union Bank of India, with varying maturity dates extending up to April 10, 2026. These deposits offer interest rates ranging from 5.25% to 6.20%.
Regulatory Compliance
In a separate announcement, Vikran Engineering reported that BSE Limited has withdrawn a penalty of Rs 1,22,720 previously levied for non-compliance with Regulation 34 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This withdrawal came after the company's submission on October 31, 2025.
Looking Ahead
With a significant portion of the IPO funds still unutilized, Vikran Engineering is positioned to continue its planned expansion and operational improvements. The company's management has indicated that the remaining funds will be utilized in subsequent quarters, in line with their stated objectives and market conditions.
Historical Stock Returns for Vikran Engineering
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -1.22% | -4.60% | +3.34% | +3.55% | +3.55% | +3.55% |
16
