Stallion India Fluorochemicals Limited (SFIL) has reported a material deviation in the utilization of its Initial Public Offering (IPO) proceeds, according to the latest Monitoring Agency Report for the quarter ended September 30, 2025. The report, issued by CARE Ratings Limited, highlights several discrepancies in the company's fund allocation and usage.

Key Findings

1. Excess Issue Expenses: SFIL incurred Rs. 15.98 crore in issue expenses, exceeding the Rs. 11.99 crore allocated in the prospectus by Rs. 3.99 crore.

2. Working Capital Utilization: The company utilized Rs. 98.71 crore for working capital requirements, surpassing the allocated Rs. 95 crore by Rs. 3.71 crore.

3. Range of Deviation: The Monitoring Agency reported a 25-50% range of deviation from the original fund utilization plan.

4. Data Discrepancies: The report noted inconsistencies in data submission by the company regarding fund utilization from its Rs. 160.73 crore IPO.

Fund Utilization Breakdown

Company's Response

The Board of Directors of SFIL stated that the excess expenses of Rs. 3.99 crore were due to the IPO being oversubscribed 180 times. They claim these expenses were not debited to any IPO head and have not resulted in any reduction in capital expenditure or working capital. The company asserts it has Rs. 10.94 crore surplus funds in its current account, which were used to cover these expenses.

Monitoring Agency's Stance

CARE Ratings Limited maintains that the surplus funds cannot be considered for monitoring purposes. The agency emphasizes that the company has already utilized funds from IPO proceeds towards working capital and IPO expenses beyond what was mentioned in the prospectus.

Ongoing Projects

Despite the deviations, the report indicates that there are no delays in the implementation of the company's planned projects. The capital expenditure projects in Khalapur, Maharashtra, and Mambattu, Andhra Pradesh, are ongoing and expected to be completed by October 30, 2025, as originally scheduled.

Investors and market observers will likely keep a close watch on Stallion India Fluorochemicals' future financial disclosures and fund utilization patterns in light of these reported deviations.

Stallion India Fluorochemicals , a Mumbai-based company operating in the fluorochemicals sector, has recently experienced significant stock market volatility. The company's shares have shown signs of recovery, rising 5% on Tuesday after a period of extreme fluctuations.

Stock Performance

The stock's journey over the past few months has been tumultuous:

Company Overview

Stallion India Fluorochemicals specializes in the production and sale of refrigerants and industrial gases. The company operates through four facilities strategically located across Maharashtra, Rajasthan, and Haryana.

Financial Performance

The company has shown strong financial growth:

Market Position and Growth Prospects

• Current market share in India's fluorochemicals segment: Approximately 10%
• Target growth: 30-35% CAGR over the next three years
• Global fluorochemicals market outlook:
  • Expected growth rate: Over 10% annually from 2024 to 2028
  • Projected market size by 2028: $16.00 billion

Technical Analysis

The stock's technical indicators suggest caution:

• Current position: Remains weak below key moving averages
• Support level: ₹190.00
• Resistance level: ₹260.00

Investors should note that while the company shows strong fundamentals and operates in a growing market, the recent stock volatility underscores the importance of careful analysis and risk management in investment decisions.

The fluorochemicals industry's positive growth outlook may provide tailwinds for Stallion India Fluorochemicals, but as with all investments, thorough due diligence is advised before making any investment decisions.