Happy Steels uses Rs 11.63 crore of IPO funds by September

Happy Steels Limited had used Rs 11.63 crore of its Rs 25.00 crore initial public offering proceeds by 30 September 2026, leaving Rs 13.37 crore unutilised. The full Rs 13.16 crore earmarked for additional plant and machinery remained pending use, with Rs 13.00 crore held in fixed deposits and Rs 15.83 lakh in a monitoring account.

How much of Happy Steels' IPO proceeds had been used?

Happy Steels had utilised Rs 11.63 crore, or less than half of its Rs 25.00 crore IPO proceeds, as of 30 September 2026. The unused Rs 13.37 crore comprised Rs 13.16 crore for plant and machinery and Rs 20.96 lakh remaining from the allocation for issue-related expenses.

The company issued 37,88,000 fully paid equity shares with a face value of Rs 10 each at Rs 66 per share, including a share premium of Rs 56 per share. Happy Steels listed on the NSE Emerge platform on 16 July 2026, and its board approved the half-year results and IPO-utilisation disclosure on 13 November 2026.

The largest use of proceeds was Rs 4.98 crore for repayment or prepayment of term loans to banks. Happy Steels also deployed Rs 3.62 crore for general corporate purposes and Rs 3.04 crore for issue-related expenses, together taking total reported utilisation to Rs 11.63 crore.

Happy Steels said Rs 3.24 crore of share-issue expenses had been adjusted from the securities premium received in the IPO. Its utilisation table separately showed Rs 3.04 crore used from the issue-expense allocation by 30 September 2026, with Rs 20.96 lakh retained for pending use.

Where did Happy Steels keep the unused machinery funds?

Happy Steels had not deployed any of the Rs 13.16 crore allocated for additional plant and machinery for its existing manufacturing unit by 30 September 2026. The company said this entire allocation was held pending utilisation for the stated capital-expenditure purpose.

Of that balance, Rs 13.00 crore was placed in fixed deposits with AU Small Finance Bank. The remaining Rs 15.83 lakh was retained in a monitoring account with Axis Bank, completing the Rs 13.16 crore capital-expenditure balance disclosed in the IPO-use note.

The balance sheet recorded property, plant and equipment of Rs 32.19 crore as at 30 September 2026, compared with Rs 29.66 crore at 31 March 2026. Capital work in progress increased to Rs 4.64 crore from Rs 2.94 crore over the same period, but the filing does not attribute either movement to the unused IPO plant-and-machinery allocation.

Other non-current assets rose to Rs 14.17 crore at 30 September 2026 from Rs 1.44 crore at 31 March 2026. While the IPO note identifies the Rs 13.00 crore fixed deposit and Rs 15.83 lakh monitoring-account balance, it does not provide a line-by-line reconciliation of these funds to the other non-current-assets balance.

Which IPO uses were completed by September 2026?

Happy Steels had fully used the Rs 4.98 crore allocated for repayment or prepayment of term loans and the Rs 3.62 crore allocated for general corporate purposes by 30 September 2026. These completed objects together accounted for Rs 8.60 crore of the Rs 11.63 crore total utilisation.

The company had also used Rs 3.04 crore of the Rs 3.24 crore assigned to issue-related expenses. The remaining Rs 20.96 lakh was kept in a public offer account with Axis Bank pending utilisation, according to the disclosure.

Long-term borrowings stood at Rs 17.49 crore on 30 September 2026, up from Rs 16.60 crore on 31 March 2026. Short-term borrowings increased to Rs 35.98 crore from Rs 30.58 crore, and the filing does not explain how each borrowing movement relates to the Rs 4.98 crore IPO-funded term-loan repayment.

Happy Steels operates in a single business segment and therefore did not provide segment information under Accounting Standard 17, Segment Reporting. The disclosure consequently does not divide the Rs 13.16 crore machinery programme or the Rs 3.62 crore general-corporate-purpose spend between separate businesses.

What did Happy Steels report for the September 2026 half year?

Happy Steels reported revenue from operations of Rs 54.18 crore for the half year ended 30 September 2026, compared with Rs 46.51 crore in the corresponding half year ended 30 September 2025. Profit before tax was Rs 5.20 crore versus Rs 5.03 crore, while profit for the period increased to Rs 4.09 crore from Rs 3.72 crore.

Employee benefit expense rose to Rs 6.52 crore for the September 2026 half year from Rs 4.86 crore a year earlier. Finance costs increased to Rs 1.66 crore from Rs 1.09 crore, and depreciation and amortisation rose to Rs 2.04 crore from Rs 1.49 crore.

Happy Steels reported net cash used in operating activities of Rs 19.23 crore for the half year ended 30 September 2026. The cash-flow statement included increases in trade and other receivables of Rs 8.31 crore and other assets of Rs 12.81 crore, while net cash from financing activities was Rs 26.55 crore.

Cash and cash equivalents stood at Rs 2.34 crore at 30 September 2026, compared with Rs 1.02 crore at the beginning of the financial year. The cash-flow statement separately recorded Rs 17.97 crore of premium on issue of shares, net of issue expenses, and Rs 3.79 crore of change in capital.

Conclusion

Happy Steels had deployed Rs 11.63 crore of its Rs 25.00 crore IPO proceeds by 30 September 2026, completing the allocations for term-loan repayment and general corporate purposes. The principal outstanding use was the Rs 13.16 crore allocation for additional plant and machinery, which had not yet been spent despite increases in property, plant and equipment and capital work in progress during the period.

The next disclosure to watch is the utilisation of the Rs 13.00 crore fixed deposit with AU Small Finance Bank and the Rs 15.83 lakh Axis Bank monitoring-account balance for the stated machinery purchase. Happy Steels also had Rs 20.96 lakh in its Axis Bank public offer account for issue-related expenses, and the filing gives no timetable for either pending utilisation.