Monitoring agency report: Rs. 1500 crore QIP proceeds nearly fully used, deviation NIL
CARE Ratings' Monitoring Agency Report on the Rs. 1500 crore QIP is out.
By ScoutQuest · · 2 min read
What was shared
Sterlite Technologies has submitted to the exchanges the Monitoring Agency Report from CARE Ratings Limited for the quarter ended September 30, 2026, covering the Qualified Institutional Placement (QIP) that raised Rs. 1500 crore. The issue period was June 24, 2026 to June 30, 2026 and the securities issued were equity shares.
Where the money was meant to go
- Repayment / pre-payment, in part or in full, of certain outstanding borrowings: Rs. 1,103.77 crore
- General corporate purposes: Rs. 367.92 crore
- Issue expenses: Rs. 28.31 crore
- Total: Rs. 1,500.00 crore
How much was used
- Repayment / pre-payment of borrowings: Rs. 1,103.77 crore utilised, nothing unutilised.
- General corporate purposes: Rs. 371.43 crore utilised against Rs. 367.92 crore proposed; the extra came from savings in issue expenses, as approved by the board.
- Issue expenses: Rs. 22.12 crore utilised against Rs. 28.31 crore proposed.
- Total utilised: Rs. 1497.32 crore. Total unutilised: Rs. 2.68 crore.
- The unutilised Rs. 2.68 crore is held in an escrow account as at September 30, 2026.
The main observation
CARE Ratings states that part of the proceeds were moved from the monitoring account into a cash credit account rather than being used directly, and were then transferred to various current accounts and other cash credit accounts. Because of numerous debit and credit entries across these accounts, the agency says it could not independently verify that only issue proceeds were used for the payments stated in the objects. It has therefore relied on the Management certificate and the CA certificate from NLA and Associates dated October 17, 2026.
Other points from the report
- Deviation from the objects of the issue: NIL. There is no material deviation.
- This is the first monitoring agency report for this QIP.
- No favourable or unfavourable events affecting the viability of the objects were reported.
- The general corporate purposes spend covered statutory dues, salary expenses, vendor payments, loan repayments, utilities, insurance and miscellaneous expenses, approved by the board.
Status of the objects
- Repayment / pre-payment of borrowings: completed, against a stated completion date of Fiscal 2027.
- General corporate purposes: completed.
- Issue expenses: ongoing.
What this means for a retail reader
The report shows the QIP money has been almost entirely deployed, within the stated objects, with deviation reported as NIL. At the same time, it records that the movement of funds through multiple bank accounts limited the monitoring agency's ability to independently verify the end use, which is why it relied on certificates from the company and its chartered accountant.
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More numbers
- QIP issue sizeRs. 1500 crore
- Object cost - repayment/pre-payment of borrowings1,103.77
- Object cost - general corporate purposes367.92
- Object cost - issue expenses28.31
- Amount utilised - general corporate purposes371.43
- Amount utilised - issue expenses22.12
- Total amount utilised1497.32
- Total unutilised amount2.68
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