Diamond Power uses Rs 1,098 crore of QIP proceeds by September

Diamond Power Infrastructure Limited utilised Rs 1,097.78 crore of its Rs 1,613.97 crore qualified institutional placement proceeds by September 30, 2026, including the full Rs 340 crore allocated to repayment of outstanding borrowings. The remaining Rs 516.19 crore was held in bank accounts and fixed deposits for the placement document's stated objects.

How much of Diamond Power's QIP proceeds had been used?

Diamond Power had used Rs 1,097.78 crore of the Rs 1,613.97 crore raised through its qualified institutional placement, or QIP, by September 30, 2026. The company raised the amount during the quarter ended September 30, 2026 by issuing 7.11 crore equity shares of face value Rs 1 each at an issue price of Rs 227 per share, under a placement document dated July 23, 2026.

The reported unutilised balance was Rs 516.19 crore at September 30, 2026. Diamond Power said this amount was held in bank accounts and fixed deposits and remained intended for the objects specified in the placement document, rather than for a purpose outside the disclosed QIP plan.

The consolidated cash-flow statement for the half year ended September 30, 2026 records Rs 1,613.97 crore from the issue of equity share capital through the QIP. It also records Rs 35.08 crore of share-issue expenses in financing cash flow, while the utilisation statement shows Rs 36.98 crore used for issue-related expenses; Diamond Power said these expenses were debited to share premium generated by the QIP issue.

Where did Diamond Power deploy the QIP money?

Diamond Power deployed its largest utilised amount, Rs 489.08 crore, towards working capital by September 30, 2026. This was followed by Rs 340 crore for outstanding-borrowing repayment, Rs 198.55 crore for general corporate purposes, Rs 36.98 crore for issue-related expenses and Rs 33.17 crore for capital expenditure.

Working capital had the largest proposed allocation of Rs 750 crore and also the largest unutilised amount of Rs 260.92 crore. Capital expenditure had a proposed allocation of Rs 205.18 crore, but only Rs 33.17 crore had been used, leaving Rs 172.01 crore; the disclosed deployment was therefore substantially greater for working capital than for capital expenditure.

General corporate purposes accounted for Rs 198.55 crore of utilisation against a proposed Rs 277.43 crore, leaving Rs 78.88 crore. Issue-related expenses were nearly fully utilised, with Rs 36.98 crore deployed from a Rs 41.35 crore allocation and Rs 4.38 crore remaining; the filing does not provide individual project, supplier or facility details for these categories.

Did Diamond Power complete its planned debt repayment?

Yes, Diamond Power used the full Rs 340 crore allocated to repayment of outstanding borrowings by September 30, 2026, leaving no unutilised amount under that object. It was the only QIP category with a nil balance, compared with Rs 260.92 crore left for working capital and Rs 172.01 crore for capital expenditure.

The consolidated cash-flow statement separately reported a Rs 164.03 crore decrease in borrowings for the half year ended September 30, 2026. That movement is not presented as a direct reconciliation to the Rs 340 crore QIP repayment because the same statement also records Rs 26.04 crore of interest paid and a Rs 390.56 crore decrease in unsecured inter-company deposits.

Diamond Power's standalone finance costs were Rs 10.10 crore for the half year ended September 30, 2026, compared with Rs 12.26 crore in the corresponding half year ended September 30, 2025. The filing does not attribute the year-on-year reduction specifically to the QIP-funded borrowing repayment, which occurred during the quarter ended September 30, 2026.

What remains available for Diamond Power's QIP objectives?

Diamond Power held Rs 516.19 crore of unutilised QIP proceeds in bank accounts and fixed deposits as of September 30, 2026, to be used for the placement document's specified objects. The balance comprised Rs 260.92 crore for working capital, Rs 172.01 crore for capital expenditure, Rs 78.88 crore for general corporate purposes and Rs 4.38 crore for issue-related expenses.

The consolidated cash-flow statement records Rs 515 crore under other fixed deposits for the half year ended September 30, 2026, as well as deposits held as margin money. These cash-flow disclosures provide context for the QIP balance, although Diamond Power did not state that every fixed-deposit movement in the cash-flow statement consisted solely of unutilised QIP proceeds.

Diamond Power said the Rs 516.19 crore balance was intended to be used for the placement document's objects. The September 30, 2026 filing did not disclose a spending timetable, a list of capital-expenditure assets, or a target date for deploying the remaining Rs 260.92 crore working-capital allocation and Rs 172.01 crore capital-expenditure allocation.

Conclusion

Diamond Power had deployed Rs 1,097.78 crore of its Rs 1,613.97 crore QIP by September 30, 2026, led by Rs 489.08 crore for working capital and Rs 340 crore for outstanding-borrowing repayment. The entire borrowing-repayment allocation was used, while capital expenditure accounted for Rs 33.17 crore of a proposed Rs 205.18 crore.

The next point to watch is the use of the Rs 516.19 crore still held in bank accounts and fixed deposits at September 30, 2026. Future disclosures can show the deployment of the remaining Rs 260.92 crore working-capital allocation, Rs 172.01 crore capital-expenditure allocation and Rs 78.88 crore for general corporate purposes under the placement document.