Sotefin Bharat leaves Rs 51.12 crore IPO proceeds unspent

Sotefin Bharat Limited had Rs 51.12 crore of fresh initial public offering proceeds unutilised at September 30, 2026, after deploying Rs 38.64 crore from Rs 89.76 crore raised. Sotefin Bharat used Rs 30 crore for working capital, while no utilisation was reported for its Kolkata manufacturing facility or proposed office premises.

How has Sotefin Bharat used its IPO proceeds?

Sotefin Bharat had utilised Rs 38.64 crore of the Rs 89.76 crore stated in its prospectus as of September 30, 2026. The largest disclosed use was Rs 30 crore for working-capital requirements, while Rs 8.64 crore was shown as utilised for issue-related expenses; no amount was reported for either capital-expenditure project or general corporate purposes.

The offer was a fresh issue of 48 lakh equity shares with a face value of Rs 10 each and securities premium of Rs 177 per share. Sotefin Bharat completed the IPO in the half year ended September 30, 2026, and its shares were listed on the BSE SME Exchange on July 23, 2026.

What IPO money remains unspent and where is it held?

Sotefin Bharat held Rs 51.12 crore of unutilised IPO proceeds at September 30, 2026, comprising Rs 1.62 crore in a bank account and Rs 49.50 crore in fixed deposits. The unutilised balance was Rs 12.48 crore higher than the Rs 38.64 crore deployed by that date.

The unspent amount included the full Rs 20.1272 crore allocated to a manufacturing facility in Kolkata, West Bengal, and the full Rs 8.1706 crore intended for proposed new office premises. It also included Rs 10 crore left from the Rs 40 crore working-capital allocation, Rs 8.8812 crore for general corporate purposes and Rs 3.941 crore of issue-related-expense funds.

Sotefin Bharat disclosed three IPO-expense figures in the filing: Rs 10.2887 crore incurred and adjusted against securities premium, Rs 8.64 crore utilised for issue-related expenses in the proceeds schedule, and Rs 9.106 crore recorded as IPO expenses in the half-year cash-flow statement. The filing does not explain the difference between those figures or give a timetable for deploying the remaining Rs 51.12 crore.

What does Sotefin Bharat's September financial position show?

Sotefin Bharat reported cash and bank balances of Rs 55.4604 crore at September 30, 2026, compared with Rs 75.69 lakh at March 31, 2026. Cash and cash equivalents were Rs 54.0894 crore at September 30, including Rs 49.50 crore of bank deposits maturing within three months, alongside the separately disclosed Rs 51.12 crore unutilised IPO balance.

Trade receivables increased to Rs 82.5216 crore at September 30 from Rs 75.1299 crore at March 31, while inventories rose to Rs 11.0753 crore from Rs 9.1237 crore. Tangible assets increased to Rs 38.0475 crore from Rs 31.858 crore, whereas capital work in progress declined to Rs 44.07 lakh from Rs 2.3589 crore over the same period.

Sotefin Bharat's short-term borrowings fell to Rs 1.046 crore at September 30 from Rs 20.0196 crore at March 31, while long-term borrowings rose to Rs 7.6911 crore from Rs 3.9879 crore. The cash-flow statement recorded a Rs 18.8324 crore net repayment of short-term borrowings during the half year and Rs 3.5618 crore of net long-term borrowing proceeds.

How did Sotefin Bharat perform in the half year ended September 2026?

Sotefin Bharat reported revenue from operations of Rs 43.2599 crore for the half year ended September 30, 2026, compared with Rs 37.0378 crore in the half year ended September 30, 2025. Profit after tax increased to Rs 7.8507 crore from Rs 5.013 crore, while basic and diluted earnings per equity share rose to Rs 5.17 from Rs 3.94.

Total expenses rose to Rs 34.9586 crore from Rs 31.0663 crore, with employee-benefit expenses increasing to Rs 5.4248 crore from Rs 3.3801 crore. Finance costs declined to Rs 61.31 lakh from Rs 1.0017 crore, while net cash used in operating activities increased to Rs 2.8301 crore from Rs 1.7048 crore a year earlier.

Sotefin Bharat said the September 2025 comparative half-year results were not subject to limited review because the September 2026 period was its first half-year financial result after listing. The Audit Committee reviewed and recommended the September 2026 results, which were approved by the Board of Directors on November 12, 2026.

Conclusion

Sotefin Bharat had directed its disclosed IPO deployment primarily to working capital, which received Rs 30 crore of the Rs 38.64 crore utilised by September 30, 2026. The company retained Rs 51.12 crore, largely in Rs 49.50 crore of fixed deposits, while the combined Rs 28.2978 crore allocations for the Kolkata facility and new office had no reported utilisation.

The next point to watch is whether Sotefin Bharat begins deploying proceeds for the proposed Kolkata manufacturing facility, office premises and Rs 8.8812 crore general-corporate-purpose allocation. Its November 12, 2026 filing identifies those unspent objectives but does not disclose a completion target or spending schedule.