Monitoring Agency Report: nil deviation in use of Rs. 3000 crore QIP proceeds
CARE Ratings Limited, the Monitoring Agency, has reported on how CG Power used the money raised through its Qualified Institutions Placement (QIP) for the quarter ended 30th September 2026.
By ScoutQuest · · 3 min read
- QIP Size
- Rs. 3000 crore
- QIP Issue Period
- June 30, 2025 to July 03, 2025
- Deviation from Objects of Issue
- Nil. Range of deviation: Nil
What this update is
CG Power and Industrial Solutions Ltd has submitted the Monitoring Agency Report prepared by CARE Ratings Limited for the quarter ended 30th September 2026. It covers how the money raised through the company's Qualified Institutions Placement (QIP) has been used.
From the report, the QIP was for Rs. 3000 crore, the issue period was June 30, 2025 to July 03, 2025, the type of issue was QIP and the securities issued were equity shares.
The headline finding
- Deviation from the objects of the issue: Nil
- Range of deviation: Nil
- The Monitoring Agency states that proceeds from the QIP have been utilised appropriately for the objects mentioned in the offer document, and that the company has utilised the funds towards setting up a power transformer plant.
- There is no material deviation, and no change in the means of finance for the disclosed objects.
- No major deviation from the previous monitoring agency report dated July 24, 2026, which covered the quarter ended June 30, 2026.
Where the money was earmarked (original cost as per the offer document)
- Investment in the subsidiary, CG Semi Private Limited, for capital expenditure towards setting up an Outsourced Semiconductor Assembly and Test (OSAT) facility: Rs. 1062.85 crore
- Funding capital expenditure requirements and strategic initiatives of the company, namely setting up a power transformer plant and development of a leasehold land: Rs. 856.98 crore
- For both heads, revised cost is shown as Not Applicable, with the reason for cost revision shown as Nil.
Other checks reported by the agency
- Whether all utilisation is as per the disclosures in the offer document: Yes, evidenced by a chartered accountant certificate, management certificate and bank statement.
- Whether all government and statutory approvals related to the objects have been obtained: Yes.
- Whether arrangements for technical assistance or collaboration are in operation: Yes. In the subsidiary CG Semi Private Limited, technology is to be provided by Renesas Electronics America Inc. and Stars Microelectronics (Thailand) Public Company Limited, which hold 6.76% and 0.90% equity respectively in CG Semi Private Limited.
- Whether any favourable or unfavourable events affect the viability of the objects: No.
- Whether any other information may materially affect investor decision-making: No.
What it means for a retail reader
This is a periodic progress report, not a new fund-raising or a new order. Its usefulness is that it puts on record, for the quarter, whether the money raised earlier is being spent on the purposes told to investors at the time of the QIP. Here the agency reports nil deviation, unchanged means of finance and no fresh events flagged as affecting the viability of the objects.
The report also notes that a chartered accountant certificate was issued by the statutory auditor, Price Waterhouse Chartered Accountants LLP, dated Oct 10, 2026, and that the company's statutory auditor changed from SRBC & Co LLP to Price Waterhouse Chartered Accountants LLP with effect from Q2FY27, in line with a change in the statutory auditor of the parent entity, Tube Investments of India Limited.
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More numbers
- QIP issue sizeRs. 3000 crore
- Original cost - CG Semi OSAT facility (Rs. crore)1062.85
- Original cost - power transformer plant and leasehold land (Rs. crore)856.98
- Renesas Electronics America Inc. equity in CG Semi Private Limited6.76%
- Stars Microelectronics (Thailand) equity in CG Semi Private Limited0.90%
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