Safety Controls deploys ₹47.92 crore from its IPO proceeds

Safety Controls & Devices deployed ₹47.92 crore from its ₹48 crore initial public offering by September 30, 2026, leaving ₹8 lakh in escrow while the monitoring report recorded no material deviations. The largest application was ₹31.42 crore for incremental working-capital requirements, against ₹31.50 crore earmarked in the offer document.

How much did Safety Controls deploy from its IPO?

Safety Controls deployed ₹47.92 crore of the ₹48 crore gross proceeds by September 30, 2026, with ₹42.16 crore used for stated issue objects and ₹5.76 crore spent on issue-related expenses. The remaining ₹8 lakh was unutilised at the end of the reported half year and was held in an escrow account.

The issue comprised 60 lakh equity shares with a face value of ₹10 each, issued at ₹80 per share, including a premium of ₹70 per share. After estimated issue-related expenses of ₹5.76 crore, Safety Controls received net proceeds of ₹42.24 crore for borrowing repayment, incremental working capital and general corporate purposes.

Borrowing repayment and general corporate purposes had each been fully utilised by September 30, 2026, while working capital was ₹8 lakh below its ₹31.50 crore allocation. The monitoring report showed no utilisation at the beginning of the half year, meaning the ₹47.92 crore reported at period-end was deployed during that half year.

Where did Safety Controls use its IPO proceeds?

Safety Controls used ₹31.42 crore for incremental working capital, ₹6 crore for repayment or prepayment of borrowings, and ₹4.74 crore for general corporate purposes. Working capital was the largest stated object, accounting for ₹31.50 crore of the ₹42.24 crore net proceeds planned in the prospectus dated April 9, 2026.

The offer document planned the working-capital funding across FY2026 and FY2027. It described Safety Controls' engineering, procurement and construction business as working-capital intensive because of long project-execution cycles, milestone-based billing and delayed collection of receivables, particularly from government clients.

The document also identified upfront materials procurement, advances to suppliers, earnest money deposits, bank-guarantee margin money and retention amounts as mechanisms that keep funds tied up during project execution. Of the ₹31.50 crore set aside for this object, ₹31.42 crore had been used by September 30, 2026, with ₹8 lakh remaining.

Safety Controls fully used its ₹6 crore allocation for debt repayment or prepayment. The prospectus had stated that the allocation would be applied against total outstanding debt of ₹39.18 crore as at January 31, 2026, while any prepayment charges and related costs would be funded through internal accruals.

The full ₹4.74 crore general-corporate-purpose allocation was also used. The monitoring report classified ₹4.50 crore of that amount as loan repayment and ₹24 lakh as business promotion and other miscellaneous expenses, based on bank statements, a chartered accountant certificate and sample invoices.

Did Safety Controls change its IPO spending plan?

Safety Controls did not change the ₹42.24 crore net-proceeds plan or the ₹48 crore total issue cost set out in the offer document. Original and revised costs remained ₹6 crore for borrowings, ₹31.50 crore for working capital, ₹4.74 crore for general corporate purposes and ₹5.76 crore for issue expenses.

The monitoring agency said utilisation was in line with the prospectus and the shareholder resolution passed at the extraordinary general meeting. It also recorded no change in the means of finance for the disclosed objects and no major deviation from earlier monitoring-agency reports.

For the report, a material deviation includes a change in the stated purposes for which funds were raised or a difference of more than 10% in the amount utilised against the projection in the offer document. The ₹8 lakh balance was therefore recorded as unutilised working-capital funds rather than as a material deviation from the ₹31.50 crore object cost.

Panchal SK and Associates, Safety Controls' statutory auditor, verified the details in a certificate dated November 9, 2026. Managing director Rajnish Chopra provided a management declaration dated November 10, 2026, while the report also recorded that relevant approvals had been obtained, citing principal approval from BSE.

What is happening to Safety Controls' remaining ₹8 lakh?

Safety Controls held the remaining ₹8 lakh in an escrow account at the end of H1FY2027, the first half of FY2027. The monitoring report listed an escrow balance and market value of ₹8 lakh, with no maturity date, earnings or return on investment disclosed.

The balance related solely to the working-capital object, rather than debt repayment, general corporate purposes or issue expenses. The board gave no comment on idle funds and disclosed no proposed course of action for the ₹8 lakh at September 30, 2026.

The report recorded no implementation delays for any of the three stated objects. Debt repayment and general corporate purposes were shown as completed in FY27, while the working-capital object remained ongoing despite an FY27 completion date in the offer document.

Infomerics Valuation and Rating Limited, the monitoring agency, visited Safety Controls' Lucknow head office on October 30, 2026. Its report identified no favourable or unfavourable event affecting the viability of the objects and no other information considered material to investor decision-making.

Conclusion

Safety Controls had applied ₹47.92 crore of its ₹48 crore gross IPO proceeds by September 30, 2026. Working capital received ₹31.42 crore, debt repayment received ₹6 crore, general corporate purposes received ₹4.74 crore and issue expenses were ₹5.76 crore, with the monitoring record showing no cost revisions or material deviations.

The next disclosed item to watch is completion of the working-capital deployment in FY27. The object remained ongoing at the end of H1FY2027, and ₹8 lakh was still held in escrow, although the monitoring report did not give a specific deployment date or planned use for that balance.