Sotefin Bharat deploys Rs 30 crore for working capital

Sotefin Bharat Limited deployed Rs 38.64 crore of its Rs 89.76 crore initial public offer proceeds by September 30, 2026, with Rs 30 crore used for working capital and Rs 8.64 crore for public-issue expenses. The Kolkata manufacturing facility and proposed office projects had received no funding, leaving Rs 51.12 crore unutilised.

How much of Sotefin Bharat’s IPO money has been used?

Sotefin Bharat had used Rs 38.64 crore, or 43.05% of the Rs 89.76 crore raised, by the quarter ended September 30, 2026. The company raised the money through a fresh issue of 48 lakh equity shares, and its shares were listed on the BSE SME Exchange on July 23, 2026.

The unutilised balance was Rs 51.12 crore at September 30, comprising Rs 49.50 crore in fixed deposits and Rs 1.62 crore in a bank account. The separate utilisation statement says unutilised funds are parked in bank fixed deposits, while the financial-results notes provide the split between the fixed-deposit and bank-account balances.

Where did Sotefin Bharat deploy the IPO proceeds?

Sotefin Bharat deployed Rs 30 crore, the largest part of the utilised amount, toward working-capital expenses during the quarter ended September 30, 2026. This represented 75% of the Rs 40 crore earmarked for working capital in the offer document, leaving Rs 10 crore available under that object.

The other Rs 8.64 crore deployed was for public-issue-related expenses, against an allocation of Rs 12.58 crore. That left Rs 3.94 crore unutilised for the issue-expense object. In the half-year cash-flow statement, Sotefin Bharat separately reported Rs 9.11 crore of IPO expenses, while its financial-results notes said total IPO-related expenses of Rs 10.29 crore had been adjusted against securities premium.

Have the Kolkata factory and new office received IPO funds?

No, Sotefin Bharat had not used any IPO proceeds for either the Kolkata manufacturing facility or the proposed new office premises as of September 30, 2026. The manufacturing-facility allocation of Rs 20.13 crore, intended for land, buildings, plant and machinery, remained fully unutilised at the quarter end.

The Rs 8.17 crore assigned to the proposed office premises was also untouched. The utilisation filing describes this office expenditure as building exterior and interiors, including furniture and fixtures. Together, the two capital-expenditure projects accounted for Rs 28.30 crore of the Rs 51.12 crore balance that had not yet been deployed.

What does the working-capital deployment coincide with?

Sotefin Bharat’s Rs 30 crore working-capital utilisation coincided with higher current operating assets at September 30, 2026 than at March 31, 2026. Trade receivables increased by Rs 7.39 crore to Rs 82.52 crore, while inventories rose by Rs 1.95 crore to Rs 11.08 crore over the six-month period.

Cash flow from operating activities was an outflow of Rs 2.83 crore in the half year ended September 30, 2026, compared with an outflow of Rs 1.70 crore in the corresponding half year ended September 30, 2025. Sotefin Bharat reported a Rs 7.42 crore increase in trade receivables, a Rs 1.95 crore increase in inventory and a Rs 2.15 crore increase in other current assets in the latest half year.

How did the IPO affect Sotefin Bharat’s cash and borrowings?

Sotefin Bharat reported cash and bank balances of Rs 55.46 crore at September 30, 2026, compared with Rs 75.69 lakh at March 31, 2026. Its cash-flow statement recorded Rs 89.76 crore of proceeds from the issue of share capital in the half year, followed by Rs 9.11 crore of IPO expenses and the reported utilisation of proceeds.

Short-term borrowings declined to Rs 1.05 crore at September 30 from Rs 20.02 crore at March 31, a reduction of Rs 18.97 crore on the balance sheet. The cash-flow statement recorded net repayment of Rs 18.83 crore in short-term borrowings during the half year, while long-term borrowings rose from Rs 3.99 crore to Rs 7.69 crore.

What did Sotefin Bharat report on trading and regulatory oversight?

Sotefin Bharat reported revenue from operations of Rs 43.26 crore for the half year ended September 30, 2026, up from Rs 37.04 crore in the half year ended September 30, 2025. Profit after tax rose to Rs 7.85 crore from Rs 5.01 crore, while earnings per equity share increased to Rs 5.17 from Rs 3.94.

Sotefin Bharat stated that its principal business segment is manufacturing and installation of automated parking solutions, so it did not report separate business segments under Accounting Standard 17. It also stated in its Regulation 32 filing that there was no deviation or variation from the IPO objects stated in the prospectus; ACER Credit Rating Private Limited was named as the applicable monitoring agency.

Conclusion

Sotefin Bharat has directed its first post-listing deployment mainly toward working capital, using Rs 30 crore of the Rs 38.64 crore deployed by September 30, 2026. The remaining use was Rs 8.64 crore for issue expenses, while all funds assigned to the Kolkata factory, office premises and general corporate purpose remained unspent.

The next utilisation disclosure will show whether Sotefin Bharat starts spending the Rs 20.13 crore allocated to the Kolkata manufacturing facility or the Rs 8.17 crore reserved for the new office. Investors can also track the remaining Rs 10 crore working-capital allocation and Rs 51.12 crore total unutilised balance, which Sotefin Bharat reported as held in bank deposits and its bank account.