Chiraharit has Rs 334.67 lakh of IPO proceeds unspent

Chiraharit Limited had Rs 334.67 lakh of unutilised initial public offering proceeds at 30 September 2026, led by Rs 315.55 lakh assigned to its HDPE ball valves and fittings manufacturing unit and temporarily held in bank fixed deposits. Chiraharit reported no deviation or variation from the IPO objects stated in its 23 September 2025 prospectus.

How much of Chiraharit's IPO proceeds remained unspent?

Chiraharit had Rs 334.67 lakh unutilised from IPO proceeds of Rs 31.0716 crore at 30 September 2026. The company reported total utilisation of Rs 27.7249 crore from the issue, whose allotment date was 8 October 2025, in a Regulation 32 disclosure filed with BSE on 12 November 2026.

The unspent amount consisted of Rs 315.55 lakh for capital expenditure on the HDPE ball valves and fittings manufacturing unit and Rs 19.12 lakh for general corporate purposes. The source records nil deviation or variation against all five IPO objects, meaning Chiraharit continued to report those balances against their original purposes rather than against a revised use.

The HDPE project represented nearly all of the outstanding balance. Chiraharit had allocated Rs 5.2617 crore to the project and used Rs 2.1062 crore by 30 September 2026, leaving Rs 315.55 lakh. In contrast, the Rs 3.904 crore allocated for repayment or prepayment of certain borrowings was fully used.

Where has Chiraharit kept its unutilised IPO money?

Chiraharit said it had temporarily parked Rs 315.55 lakh in bank fixed deposits for completion of the HDPE ball valves and fittings manufacturing project. The company made that statement in the remarks against the project allocation in its half-yearly utilisation disclosure for the period ended 30 September 2026.

The remaining Rs 19.12 lakh was temporarily parked in bank current accounts for future corporate overheads, according to the statutory auditors' certificate dated 12 November 2026. Thus, the disclosed Rs 334.67 lakh of unutilised proceeds was split between fixed deposits for the manufacturing project and current accounts for general corporate purposes.

The filing identifies the destination and intended use of both balances but does not disclose the maturity of the fixed deposits, their interest income, or a completion date for the HDPE project. The available statement instead describes the Rs 315.55 lakh deposit balance as temporary and links it specifically to project completion.

Which IPO objects has Chiraharit fully funded?

Chiraharit reported full utilisation of three objects by 30 September 2026: Rs 3.904 crore for borrowing repayment or prepayment, Rs 14.1332 crore for working-capital requirements, and Rs 3.1127 crore for issue-related expenses. Together, these fully used categories accounted for Rs 21.15 crore of the Rs 31.0716 crore issue proceeds.

Working capital was the largest IPO allocation at Rs 14.1332 crore and was fully utilised, while the HDPE manufacturing unit had the second-largest allocation at Rs 5.2617 crore but retained Rs 315.55 lakh. This comparison shows that the remaining proceeds were concentrated in the capital-expenditure project rather than in working capital, debt repayment or issue expenses.

General corporate purposes had an original allocation of Rs 4.66 crore. The statutory auditors' certificate records Rs 4.4688 crore as actually utilised and Rs 19.12 lakh as unutilised, which reconciles with both the allocation and the reported total outstanding IPO balance of Rs 334.67 lakh.

Is there an inconsistency in Chiraharit's general corporate-purpose table?

Yes, the company’s deviation table appears to show Rs 1.4688 crore as utilised for general corporate expenses, while the statutory auditors' certificate shows Rs 4.4688 crore for general corporate purposes. The auditor-certified Rs 4.4688 crore figure is consistent with the Rs 4.66 crore allocation, the stated Rs 19.12 lakh balance, and total IPO utilisation of Rs 27.7249 crore.

If the Rs 1.4688 crore figure shown in the deviation table were used, the unutilised general-corporate balance would be Rs 3.1912 crore rather than the stated Rs 19.12 lakh. That would also conflict with the company’s reported aggregate unutilised balance of Rs 334.67 lakh. Chiraharit did not explain the apparent difference in the disclosed material.

The statutory auditors, G P Associates, stated that the utilisation details in their 12 November 2026 certificate agreed, in all material respects, with Chiraharit's underlying books, records and documents. The certificate covered the half-year ended 30 September 2026 and listed Rs 4.4688 crore as the actual amount used for general corporate purposes.

What does Chiraharit's no-deviation disclosure mean?

Chiraharit's no-deviation disclosure means it reported that IPO money remained allocated to the objects set out in its prospectus dated 23 September 2025. The company specifically confirmed no deviation or variation in its 12 November 2026 letter, despite Rs 334.67 lakh not having been spent by the 30 September 2026 reporting date.

The disclosure defines deviation or variation to include a change in the objects for which funds were raised, a difference in the amount used against the original disclosure, or a change in terms of a contract referred to in the fundraising document. Chiraharit’s Audit Committee reviewed the statement and the Board took it on record at their respective meetings on 12 November 2026.

No monitoring agency was applicable to the IPO, according to the Regulation 32 statement. Separately, G P Associates issued the statutory auditors' certificate on the object-wise use of the proceeds, while the company's consolidated financial-results notes said the group operated in a single business segment for the half-year ended 30 September 2026.

Conclusion

Chiraharit had used Rs 27.7249 crore of its Rs 31.0716 crore IPO proceeds by 30 September 2026, with working capital, borrowing repayment or prepayment, and issue expenses fully utilised. The Rs 334.67 lakh outstanding balance was principally tied to the HDPE manufacturing-unit allocation, with Rs 315.55 lakh in bank fixed deposits, while Rs 19.12 lakh was held in current accounts for corporate overheads.

The next disclosed matter to watch is use of the Rs 315.55 lakh fixed-deposit balance for completion of the HDPE ball valves and fittings project, for which Chiraharit has not provided a timetable. Subsequent utilisation disclosures may also show deployment of the Rs 19.12 lakh general-corporate balance and address the apparent difference between Rs 1.4688 crore and Rs 4.4688 crore in the two disclosed tables.