Precision Wires leaves Rs 150 crore CCD proceeds unused

Precision Wires India Limited had not used any of the Rs 150 crore raised through compulsory convertible debentures, or CCDs, by September 30, 2026, five days after their September 25 allotment. The entire amount remained unutilised across Rs 90 crore for copper working capital and Rs 60 crore for expansion.

When did Precision Wires raise the Rs 150 crore?

Precision Wires raised Rs 150 crore through a preferential issue of 37.50 lakh CCDs allotted on September 25, 2026, at Rs 400 each. Its utilisation statement was filed for the quarter ended September 30, 2026, placing the reported nil deployment position five calendar days after allotment.

CARE Ratings Limited was named as the monitoring agency for the Rs 150 crore issue. Precision Wires marked deviation or variation in the use of funds as “not applicable” for the September 30 quarter, while its object-wise table stated that nothing had been utilised up to that date.

The half-year cash-flow statement separately recorded Rs 150 crore as proceeds from the issue of 12% CCDs for the half year ended September 30, 2026. That cash-flow entry establishes the financing inflow, whereas the utilisation annexure records the use of the proceeds against the stated objects through September 30.

What were Precision Wires' stated uses for the CCD proceeds?

Precision Wires allocated Rs 90 crore to working-capital requirements for procuring copper raw material and discharging associated financial liabilities. This was the largest stated object, accounting for 60% of the Rs 150 crore preferential CCD issue.

Precision Wires allocated the remaining Rs 60 crore, or 40% of the issue, to expansion. Of that amount, Rs 50 crore was designated for capital expenditure on new equipment and Rs 10 crore for land acquisition, making the equipment allocation Rs 40 crore larger than the land allocation.

The stated allocation directs Rs 90 crore to a working-capital purpose and Rs 60 crore to expansion-related expenditure. Precision Wires did not disclose a timetable for copper procurement, equipment purchases, land acquisition or completion of the expansion projects in the September 30 filing.

How much of the CCD money had Precision Wires used by September 30?

Precision Wires had used Rs 0 of the Rs 150 crore CCD proceeds by September 30, 2026, according to its object-wise utilisation table. The table recorded no utilisation to date against both the Rs 90 crore working-capital allocation and the Rs 60 crore expansion allocation.

The nil utilisation also applied to both expansion components. Precision Wires reported no spending against the Rs 50 crore earmarked for new equipment and no spending against the Rs 10 crore set aside for land acquisition by the September 30 reporting date.

Precision Wires did not report a modified object, shareholder-approved change in terms, audit-committee comment or auditor comment for the Rs 150 crore issue. The “not applicable” deviation entries indicate that the filing did not report a change in the stated objects, alongside the separate disclosure of Rs 0 utilisation.

What did Precision Wires report in its September-quarter financial results?

Precision Wires reported total revenue of Rs 1,972.0188 crore for the quarter ended September 30, 2026, compared with Rs 1,779.2442 crore for the quarter ended June 30, 2026. Profit after tax was Rs 43.3854 crore in the September quarter, compared with Rs 46.4534 crore in the preceding June quarter.

For the half year ended September 30, 2026, Precision Wires reported total revenue of Rs 3,751.263 crore and profit after tax of Rs 89.8388 crore. In the half year ended September 30, 2025, total revenue was Rs 2,352.9786 crore and profit after tax was Rs 62.6982 crore, providing a year-on-year comparison separate from the five-day CCD utilisation period.

The half-year cash-flow statement reported net cash generated from financing activities of Rs 166.9386 crore, including the Rs 150 crore CCD proceeds. It also showed Rs 74.349 crore of net proceeds from term borrowings and Rs 47.356 crore of financial charges paid, without assigning those other cash-flow movements to a CCD object.

Why does the five-day utilisation period matter?

The reported Rs 0 utilisation covers September 25 to September 30, 2026, rather than a full quarter following the CCD allotment. It therefore describes Precision Wires' initial post-allotment position and does not establish the pace at which the Rs 90 crore copper allocation or Rs 60 crore expansion allocation may be deployed later.

Precision Wires disclosed the allocation split of Rs 50 crore for equipment and Rs 10 crore for land, but did not provide implementation dates for either expansion component. The filing also did not state when the Rs 90 crore working-capital allocation would be applied to copper procurement or related financial liabilities.

Conclusion

Precision Wires' September 30 disclosure shows that the entire Rs 150 crore preferential CCD issue remained unused shortly after its September 25 allotment. The stated uses remain unchanged: Rs 90 crore for copper working capital and related liabilities, Rs 50 crore for new equipment, and Rs 10 crore for land acquisition.

The key unresolved matter is the timing of object-wise deployment under this Rs 150 crore plan. Future disclosures will be relevant for whether Precision Wires begins using funds for copper procurement, equipment purchases or land acquisition, since the November 6 filing gives no spending schedule for those stated objects.