Q-Line Biotech deploys Rs 122.34 crore of IPO funds by September

Q-Line Biotech Limited had deployed Rs 122.34 crore of its Rs 214.48 crore IPO proceeds by September 30, 2026, while Rs 92.14 crore remained unutilised and was parked in bank fixed deposits. Q-Line Biotech reported cumulative deployment of Rs 89.91 crore for borrowings, Rs 9.50 crore for working capital and Rs 22.94 crore for issue-related expenses.

How much of Q-Line Biotech's IPO proceeds had been used?

Q-Line Biotech had used Rs 122.34 crore of the Rs 214.48 crore allocated across IPO objects as of September 30, 2026. This was Rs 22.97 crore higher than the Rs 99.38 crore reported as utilised at the beginning of the quarter. The company raised the funds through an IPO finalised on May 26, 2026, according to its November 5, 2026 utilisation certificate.

The unutilised balance was Rs 92.14 crore at quarter-end. Q-Line Biotech stated that all transactions and expenses from the monitoring account during Q2 FY27 were towards IPO objects. The company also noted that the variation in aggregate balances was due to rounding.

Where did Q-Line Biotech spend the deployed IPO money?

Q-Line Biotech applied Rs 89.91 crore to repay certain borrowings by September 30, 2026, making debt repayment the largest deployed IPO object. This left Rs 9 lakh of the Rs 90 crore borrowing-repayment allocation unutilised. Cumulative debt-repayment utilisation increased from Rs 76.44 crore at the quarter's beginning by Rs 13.47 crore during the quarter.

Working-capital deployment was Rs 9.50 crore during the quarter, compared with no working-capital utilisation at its beginning. The detailed schedule identifies Rs 5 crore of self-assessment tax paid to the Central Board of Direct Taxes on August 7, 2026, plus Rs 2 crore and Rs 50 lakh of advance tax paid on September 17, 2026.

The other working-capital payments were Rs 1.61 crore to DIRUI Industrial Co Ltd on September 14, 2026 against an invoice for instruments and spares, and Rs 39 lakh paid in advance to Hongkong Sinseng Medical Technology Co., Limited for procurement of an instrument for trading. The five disclosed payments totalled Rs 9.50 crore, leaving Rs 84 crore of the Rs 93.50 crore working-capital allocation unspent.

Why does Q-Line Biotech's debt schedule differ from its quarterly total?

Q-Line Biotech's detailed debt schedule shows Rs 12.49 crore of net repayment during the quarter, while its object-progress schedule reports Rs 13.47 crore of debt-repayment utilisation over the same period. The detailed schedule lists a Rs 13.63 crore repayment of HDFC Loan No. 163973495 on July 8, 2026, less Rs 1.14 crore described as reversal of processing charges to the monitoring account on August 20, 2026.

The difference between the two disclosed quarterly debt figures is Rs 98 lakh. Separately, the fixed-deposit schedule deducts Rs 98 lakh for prepayment charges reversed after they were inadvertently paid from the monitoring account during Q1 FY27. The filing does not expressly reconcile the Rs 12.49 crore net amount in the detailed debt schedule with the Rs 13.47 crore shown in the object-progress table.

The Rs 22.97 crore total utilisation reported for the quarter equals Rs 9.50 crore of working-capital use plus Rs 13.47 crore in the debt-repayment progress line. No fresh quarterly spending was reported under general corporate purpose or issue-related expenses, where cumulative utilisation remained nil and Rs 22.94 crore, respectively, at September 30, 2026.

Where is Q-Line Biotech holding the unused IPO balance?

Q-Line Biotech reported that its Rs 92.14 crore unutilised balance was parked in fixed deposits after funds were transferred to its current account. The company listed two IndusInd Bank fixed deposits of Rs 20 crore each and two HDFC Bank deposits of Rs 45 crore and Rs 8.12 crore, less a Rs 98 lakh reversal adjustment.

The four deposits had reported quarter-end values of Rs 94.18 crore, while the net unutilised-proceeds balance was Rs 92.14 crore after the adjustment. The two IndusInd deposits mature on July 25, 2027 and August 9, 2027, with disclosed returns of 7.40%. The Rs 45 crore HDFC deposit matures on July 24, 2027 at 6.90%, while the Rs 8.12 crore HDFC deposit matures on December 27, 2026 at 5.50%.

Has Q-Line Biotech reported any change to IPO objects?

Q-Line Biotech reported no revision to any of its four IPO objects as of September 30, 2026. Its fund-deployment summary says utilisation was in line with disclosures in the red herring prospectus, shareholder approval for material deviations was not required, and the means of finance for the disclosed objects had not changed.

The company also reported no major deviation from earlier monitoring reports. Q-Line Biotech said all relevant government or statutory approvals required for the objects were in place, and management foresaw no favourable or unfavourable events affecting the viability of those objects.

R K Jagetiya & Co's certificate dated November 5, 2026 states that it verified relevant unaudited books and records as at September 30, 2026. The certificate says the Rs 92.14 crore unutilised balance was held in bank term deposits earmarked for the remaining IPO objects, based on management's statement and the records examined.

Conclusion

Q-Line Biotech had directed Rs 89.91 crore of its Rs 122.34 crore cumulative IPO deployment towards borrowings as of September 30, 2026. Working-capital use was Rs 9.50 crore, issue-related expenses accounted for Rs 22.94 crore, and no amount had been used from the Rs 5.09 crore allocation for general corporate purpose.

The next utilisation update should show whether Q-Line Biotech begins deploying the Rs 84 crore remaining for working capital, the Rs 5.09 crore for general corporate purpose and the Rs 2.95 crore for issue-related expenses. It may also provide further detail on the difference between the Rs 13.47 crore quarterly debt-repayment progress figure and the Rs 12.49 crore net amount in the detailed schedule, while the Rs 8.12 crore HDFC deposit approaches its December 27, 2026 maturity.