Transformers & Rectifiers (India) Limited (TARIL), a leading transformer manufacturer, has issued a clarification regarding a transformer problem reported by TGV SRAAC Limited. The company's statement comes in response to TGV's intimation to BSE Limited under SEBI regulations.

Key Points of the Clarification

TARIL's Stance and Actions

TARIL emphasized its "Service First Policy" in addressing the issue promptly. The company stated that the cause of the problem can only be determined once the transformer is taken for repair. Importantly, TARIL clarified that this event is not considered material under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Warranty and Service Considerations

It's worth noting that the transformer in question was out of warranty at the time of the reported issue. Despite this, TARIL's quick response—sending an engineer to the site within a day of the reported problem—demonstrates the company's commitment to customer service.

Implications and Next Steps

The resolution of this issue now depends on TGV SRAAC Limited's response to TARIL's rectification offer. The incident highlights the importance of prompt communication and service in the industrial equipment sector, even for products long out of warranty.

TARIL's clarification serves to maintain transparency with its stakeholders and reinforces its position as a responsible corporate entity. As the situation develops, stakeholders will likely be interested in the outcome of the repair process and any potential impact on either company's operations or relationship.

Transformers & Rectifiers (India) Limited, a leading manufacturer of transformers, has submitted its monitoring agency report for the quarter ended June 30, regarding funds raised through a Qualified Institutional Placement (QIP). The report, prepared by India Ratings and Research Private Limited, confirms that there has been no deviation from the stated objectives of the QIP.

QIP Details and Fund Utilization

The company successfully raised INR 5,000.00 crore through the QIP conducted from June 10-13, issuing 75,18,796 equity shares at INR 665.00 per share. As of the end of the quarter, the company has utilized INR 193.99 crore, bringing the total utilization to INR 1,939.90 crore. The remaining unutilized amount stands at INR 3,060.10 crore.

Allocation of Funds

The funds raised through the QIP have been allocated for various purposes:

Key Observations

Issue Expenses Overrun

The actual issue expenses exceeded the planned amount by INR 29.93 crore, totaling INR 141.78 crore. This overrun has been ratified and approved by the Board of Directors.

Temporary Deployment of Unutilized Funds

The company has temporarily invested the unutilized proceeds in various instruments, including fixed deposits with Axis Bank and State Bank of India, mutual funds, and other investment instruments.

Implementation Delay

The monitoring agency noted delays in implementation of more than three months. The completion date for all objects, initially set for Fiscal 2025, is now estimated for July 2026.

Conclusion

While Transformers & Rectifiers (India) Limited has reported no deviation from the stated objectives of its QIP, the company faces challenges in terms of implementation delays and higher-than-expected issue expenses. The company's ability to effectively deploy the raised capital and adhere to the revised timeline will be crucial factors in determining the long-term impact of this QIP on its growth and financial performance.