Osel Devices reports no IPO-use deviation, Rs 2.75 lakh pending

Osel Devices Limited reported no deviation in its IPO proceeds use for the half year ended September 30, 2026, with Rs 60.7535 crore utilised from net proceeds and Rs 2.75 lakh unutilised in general corporate purposes after Rs 9.875 crore of issue expenses.

How did Osel Devices allocate the IPO proceeds?

Osel Devices allocated Rs 60.781 crore of net IPO proceeds across loan repayment, working capital and general corporate purposes. The company raised Rs 70.656 crore through its public issue on September 20, 2024, and its filing says Rs 9.875 crore was used for public-issue expenses, leaving Rs 60.781 crore for the three stated objects.

The allocation disclosed in the September 30, 2026 statement was Rs 6 crore for prepayment or repayment of certain company loans, Rs 44 crore for working-capital requirements and Rs 10.781 crore for general corporate purposes. Osel Devices listed no modified object for any of the three categories, meaning the filing retained the original allocations.

Osel Devices reported that the entire Rs 6 crore loan-repayment allocation had been used and that the Rs 44 crore allocated to working capital had also been used. The only disclosed balance was Rs 2.75 lakh within the general-corporate-purpose allocation, where utilisation was Rs 10.7535 crore against the original Rs 10.781 crore allocation.

The difference between total net proceeds of Rs 60.781 crore and total utilisation of Rs 60.7535 crore equals the disclosed Rs 2.75 lakh balance. The statement identified that balance only as remaining unutilised under general corporate purposes and did not specify a planned date or use for the amount.

Was there any deviation in Osel Devices' IPO fund use?

Osel Devices answered “No” to whether there was a deviation or variation in the use of funds raised through the IPO for the half year ended September 30, 2026. Annexure-1 identifies the fundraising mode as a public issue dated September 20, 2024, and reports Rs 70.656 crore as the amount raised.

The filing defines a deviation or variation as a change in the objects or purposes for which funds were raised, a difference between actual utilisation and the amount originally disclosed, or a change in the terms of a contract referred to in the prospectus or other fundraising documents. Osel Devices nevertheless marked no deviation for the Rs 6 crore loan-repayment, Rs 44 crore working-capital and Rs 10.781 crore general-corporate-purpose objects.

No monitoring agency was applicable to the public issue, according to the September 30, 2026 statement. Osel Devices also recorded “not applicable” for comments from its audit committee and chartered accountants in the deviation statement, while a separate utilisation certificate was issued by Kumar Samantaray & Associates on November 12, 2026.

The company’s statement therefore distinguishes issue expenses of Rs 9.875 crore from the Rs 60.781 crore available for stated IPO objects. Its no-deviation declaration applies to the utilisation statement for the net proceeds allocated to loan repayment, working capital and general corporate purposes.

Why do the IPO statement and certificate differ?

The issuer’s deviation statement and the accompanying accountant’s certificate agree on total utilisation of Rs 60.7535 crore and an unutilised balance of Rs 2.75 lakh, but they show conflicting working-capital figures. The issuer statement says Rs 44 crore of the working-capital allocation was utilised, whereas the certificate’s working-capital row says Rs 24 crore was utilised.

This difference matters because the certificate still states total utilisation of Rs 60.7535 crore, matching the issuer statement. Its loan-repayment row shows Rs 6 crore utilised and its general-corporate-purpose row shows Rs 10.7535 crore utilised; combined with Rs 24 crore of working-capital use, those three displayed rows do not reconcile to the stated total utilisation.

The certificate’s note says the public issue raised Rs 70.656 crore, of which Rs 9.875 crore went towards issue expenses and Rs 60.781 crore remained for the disclosed objects. That note matches the allocation total in the issuer’s deviation statement, but the certificate does not explain the working-capital row that displays Rs 24 crore of utilisation.

Osel Devices’ issuer statement is also the document that reports Rs 44 crore of working-capital utilisation and a nil deviation amount for that object. The filing supplies no explanation for the conflicting certificate row, even though both documents are dated November 12, 2026 and relate to the IPO proceeds raised on September 20, 2024.

What did Osel Devices report alongside IPO utilisation?

Osel Devices reported consolidated revenue from sales and services of Rs 193.6337 crore for the half year ended September 30, 2026, compared with Rs 146.8613 crore for the half year ended September 30, 2025. Total income increased to Rs 194.8873 crore from Rs 146.684 crore over the same periods, including Rs 1.2536 crore of other income in the latest half year.

Profit for the period was Rs 18.0803 crore for the half year ended September 30, 2026, compared with Rs 15.1861 crore a year earlier. Finance costs rose to Rs 7.5742 crore from Rs 3.6572 crore, while employee-benefit expenses increased to Rs 8.78 crore from Rs 2.1381 crore.

The September 30, 2026 consolidated balance sheet reported inventories of Rs 73.6525 crore, trade receivables of Rs 137.9021 crore and short-term borrowings of Rs 145.3331 crore. These balances provide reported operating context for the Rs 44 crore IPO allocation designated for working capital, although the filing does not attribute IPO proceeds to individual inventory, receivable or borrowing balances.

Osel Devices also reported cash and cash equivalents of Rs 1.2141 crore at September 30, 2026, compared with Rs 1.6384 crore at March 31, 2026. The company’s half-year filing does not link this movement directly to the Rs 2.75 lakh IPO balance remaining under general corporate purposes.

Conclusion

The disclosures show that Osel Devices had used nearly all of the Rs 60.781 crore net proceeds available for stated IPO objectives by September 30, 2026. Loan repayment and working-capital allocations were marked fully utilised in the issuer statement, while Rs 2.75 lakh remained under general corporate purposes and the company reported no deviation or modified objective.

The next matter to watch is the use of the remaining Rs 2.75 lakh and whether a later filing resolves the difference between the issuer statement’s Rs 44 crore working-capital utilisation and the accountant’s certificate showing Rs 24 crore. The November 12, 2026 certificate confirms total utilisation of Rs 60.7535 crore but does not explain the conflicting working-capital row.