CARE Ratings monitoring report: no material deviation in IPO proceeds utilisation
The company has shared the Monitoring Agency Report from CARE Ratings Limited for the quarter ended September 30, 2026, on how the IPO money was used.
By ScoutQuest · · 3 min read
- Tier-I capital utilisation
- ₹2,461.22 crore
- Interest accrued on fixed deposit
- ₹4.60 crore
- Amount reallocated to issue/offer related expenses
- ₹2 crore
What this update is
The company has sent the stock exchanges the quarterly Monitoring Agency Report prepared by CARE Ratings Limited on the use of the money raised through its Initial Public Offer, for the quarter ended September 30, 2026. A monitoring agency is an independent agency appointed to check whether IPO money is used for the purposes set out in the offer document.
The money involved
- The IPO was for an issue size of ₹12,500 crores — a fresh issue aggregating to Rs. 2,500 crore and Rs. 10,000 crore related to offer for sale.
- CARE Ratings writes in its capacity as Monitoring Agency for the amount aggregating to ₹2,500 crore (gross proceeds).
- Cost of augmenting the Tier-I capital base: original cost 2,458.62 crore in Rs. Crore, revised cost 2,456.62 crore in Rs. Crore.
- Offer expenses: original cost 41.38 crore in Rs. Crore, revised cost 43.38 crore in Rs. Crore.
- Total in both versions: 2,500.00 crore in Rs. Crore.
- Utilisation towards augmenting the Tier-I capital base aggregates to ₹2,461.22 crore, and this includes ₹4.60 crore interest accrued on fixed deposit.
What changed in the quarter
An amount of ₹2 crore which was pending to be utilised as part of augmentation of Tier-I capital has been allocated to issue / offer related expenses. The report notes this was approved in the board meeting dated January 14, 2026. On the object-wise table, the same point is recorded as ₹2 crore pending to be utilised towards onward lending being allocated towards utilisation for issue expenses. CARE Ratings states there is no material deviation or variation from the stated objects as well as the amount allocated to each object.
What the monitoring agency reports
- Deviation from the objects: No material deviation
- Range of deviation: Up to 10%
- Whether all utilisation is as per the disclosures in the Offer Document: Yes
- All the proceeds from IPO have been utilised appropriately as per offer document.
- Whether shareholder approval has been obtained in case of material deviations from expenditures disclosed in the Offer Document: Not Applicable, with no material deviation noted.
- Whether the means of finance for the disclosed objects of the issue have changed: No
- Is there any major deviation observed over the earlier monitoring agency reports: No
- Whether all Government/statutory approvals related to the object(s) have been obtained: Yes
- Whether all arrangements pertaining to technical assistance/collaboration are in operation: Not Ascertainable
- Are there any favourable/unfavourable events affecting the viability of these object(s): No — the agency notes there have not been any such events so far.
- Is there any other relevant information that may materially affect the decision making of the investors: No
What the report is based on
The Monitoring Agency says it considered the Offer Document, a Chartered Accountant certificate from G D Apte & Co Chartered Accountants dated October 07, 2026, and bank statements. It states that it does not perform an audit and undertakes no independent verification of the information, certifications or statements it receives. It also states that sections titled "Comments of the Board of Directors" are captured by the issuer's management or audit committee and have not been reviewed by the agency.
The object being monitored
The fresh issue money is tracked against one main head: augmentation of the company's Tier-I capital base to meet future capital requirements, including onward lending under its business verticals — Enterprise Lending, Asset Finance and Consumer Finance — along with offer expenses. Both heads together carry a revised cost of 2,500.00 crore in Rs. Crore, unchanged from the original total.
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More numbers
- Issue size of the IPO (fresh issue plus offer for sale)₹12,500 crores
- Fresh issue portion of the IPORs. 2,500 crore
- Offer for sale portion of the IPORs. 10,000 crore
- Range of deviation from the objectsUp to 10%
- Amount reallocated from Tier-I capital to issue expenses₹2 crore
- Revised cost, augmentation of Tier-I capital base2,456.62
- Revised cost, offer expenses43.38
- Utilisation towards Tier-I capital base (includes interest accrued on fixed deposit)₹2,461.22 crore
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