Q-Line deploys Rs 122.34 crore of IPO proceeds by September

Q-Line Biotech Limited deployed Rs 122.34 crore of its Rs 214.48 crore initial public offering proceeds by September 30, 2026, while Rs 92.14 crore was held in bank fixed deposits. The reported deployment included Rs 89.91 crore for repayment of borrowings and Rs 9.50 crore for working-capital requirements.

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

Q-Line had cumulatively utilised Rs 122.34 crore of the Rs 214.48 crore allocated to four IPO objects at September 30, 2026. The fund-utilisation certificate dated November 5, 2026, covers the quarter ended September 30, 2026, and identifies working capital, repayment of borrowings, general corporate purpose and issue-related expenses as the stated uses.

Working capital received the largest original allocation at Rs 93.50 crore, followed by Rs 90 crore for repayment of certain borrowings. Issue-related expenses were allocated Rs 25.89 crore and general corporate purpose received Rs 5.09 crore. The monitoring report showed no revised cost for these objects.

The allocation and utilisation figures show that the borrowing-repayment object was almost fully used, with Rs 0.09 crore remaining. Working-capital deployment was lower at Rs 9.50 crore, leaving Rs 84 crore of its Rs 93.50 crore allocation unutilised at the end of Q2FY27.

How did Q-Line use IPO funds during Q2FY27?

Q-Line used Rs 9.50 crore during Q2FY27 for working-capital requirements, specifically trade payables and advance tax. CARE Ratings Limited, the monitoring agency, said the company transferred this sum from the monitoring account to its current account before deployment and relied on management and Chartered Accountant certificates for the stated use.

Q-Line also made a Rs 13.47 crore prepayment of an HDFC loan during Q2FY27. This raised cumulative deployment under the borrowing-repayment object from Rs 76.44 crore at the beginning of the quarter to Rs 89.91 crore at September 30, 2026.

The report separately records Rs 0.16 crore of prepayment charges that were reversed within Q2FY27. Those charges were excluded from the stated Rs 13.47 crore loan-prepayment amount, and the monitoring report subsequently treated Rs 0.98 crore of reversed charges from Q1FY27 as funds parked in a fixed deposit receipt.

No utilisation was reported during Q2FY27 for general corporate purpose or issue-related expenses. Cumulative spending on issue-related expenses was Rs 22.94 crore against the Rs 25.89 crore allocation, while the full Rs 5.09 crore general-corporate-purpose allocation remained unutilised.

Where has Q-Line parked its unutilised IPO money?

Q-Line had invested Rs 92.14 crore of unutilised IPO proceeds in fixed deposit receipts, or FDRs, with IndusInd Bank and HDFC Bank at September 30, 2026. The schedule listed deposits of Rs 20 crore, Rs 20 crore, Rs 45 crore and Rs 8.12 crore, less Rs 0.98 crore representing the reversal of earlier prepayment charges.

The deposits had a combined market value of Rs 93.20 crore at quarter-end, compared with the Rs 92.14 crore invested amount. The Rs 20 crore and Rs 20 crore IndusInd Bank FDRs mature on July 25, 2027 and August 9, 2027, respectively, while the Rs 45 crore HDFC Bank FDR matures on July 24, 2027.

The Rs 8.12 crore HDFC Bank FDR matures on December 27, 2026. The monitoring report listed returns of 7.40% for each of the two Rs 20 crore IndusInd Bank deposits and 5.50% for the Rs 8.12 crore HDFC Bank deposit.

The FDR schedule accounts for the Rs 92.14 crore reported as unutilised proceeds. This balance comprised Rs 84 crore remaining for working capital, Rs 5.09 crore for general corporate purpose, Rs 2.95 crore for issue-related expenses and Rs 0.09 crore under the borrowing-repayment object.

What timelines and monitoring observations did Q-Line disclose?

Q-Line's offer-document schedule described working-capital deployment as ongoing, with Rs 63 crore expected in FY27 and Rs 30.50 crore in FY28. The borrowing-repayment object was scheduled at Rs 90 crore in FY27, while general corporate purpose was listed at Rs 5.09 crore in FY27.

Issue-related expenses were marked as ongoing, with no timeline specified in the monitoring report. CARE Ratings recorded delay as not applicable for all four IPO objects for the quarter ended September 30, 2026.

CARE Ratings said no major deviation was observed in Q2FY27, based on the management certificate. Its report considered management certificates, bank statements and a November 5, 2026 certificate from R K Jagetiya & Co., Chartered Accountants, identified in the filing as Q-Line's statutory auditor.

The monitoring agency also noted that Q-Line had reported Rs 0.98 crore of bank charges as utilised in Q1FY27 for facilities from Vivriti Capital Limited and Oxyzo Financial Company. Q-Line reversed that amount to the monitoring account in Q2FY27, and the unutilised-proceeds schedule identified the reversed amount as parked in an FDR.

Conclusion

Q-Line's September 30, 2026 filing shows that it had deployed Rs 122.34 crore of Rs 214.48 crore in IPO proceeds, led by Rs 89.91 crore used for repayment of borrowings. Working-capital deployment stood at Rs 9.50 crore, and Rs 92.14 crore of unutilised proceeds remained in fixed deposits.

The next disclosed deployment schedule calls for Rs 63 crore of working-capital use in FY27 and Rs 30.50 crore in FY28. The December 27, 2026 maturity of the Rs 8.12 crore HDFC Bank FDR, and subsequent disclosures on the Rs 84 crore working-capital balance, are the stated items to watch next.