Steelco Gujarat fully deploys Rs 14.90 crore rights proceeds

Steelco Gujarat Limited fully utilised the Rs 14.90 crore raised in its rights issue allotted on June 6, 2026, by September 30, 2026, and reported no deviation from the stated objects. Rs 11.60 crore, the largest allocation, was used for long-term working-capital requirements, according to the company’s utilisation statement.

What did Steelco Gujarat report on rights issue utilisation?

Steelco Gujarat reported that it had fully used the Rs 14.90 crore raised through its rights issue as of September 30, 2026, with no deviation or variation in the use of funds. The company identified June 6, 2026, as the date of allotment and filed the statement for the quarter or half year ended September 30, 2026.

The statement was made under Regulation 32 of the Securities and Exchange Board of India, or SEBI, Listing Obligations and Disclosure Requirements Regulations, 2015. Steelco Gujarat listed Infomerics Valuation and Rating Limited as the applicable monitoring agency for the Rs 14.90 crore rights issue.

Steelco Gujarat recorded no comments from its audit committee and no auditor comments on the reported absence of deviation or variation as of September 30, 2026. Its statement defines deviation or variation as a change in the issue objects, a difference between disclosed and actual utilisation, or a change in terms of a contract cited in the offer document.

The company’s disclosure compares the allocation in the May 9, 2026 letter of offer with actual utilisation up to September 30, 2026. For each of the three stated objects, actual spending equalled the amount set out in the offer document, and the unutilised amount was shown as nil.

How did Steelco Gujarat use the rights issue proceeds?

Steelco Gujarat used Rs 11.60 crore for long-term working-capital requirements by September 30, 2026, matching the amount disclosed for that object in the May 9, 2026 letter of offer. This was the largest of the three stated uses of the Rs 14.90 crore issue proceeds.

General corporate purposes received Rs 3 crore, which was the full amount allocated to that category in the offer document. Issue expenses were Rs 30 lakh, also equal to the stated allocation, bringing the reported total use to Rs 14.90 crore.

The period comparison shows no change between the offer-document allocation and spending through September 30, 2026. The Rs 11.60 crore working-capital allocation remained separate from the Rs 3 crore general-corporate-purpose allocation and the Rs 30 lakh issue-expense allocation.

The scale of the three uses also shows that long-term working capital was the principal object. Its Rs 11.60 crore allocation exceeded the Rs 3 crore assigned to general corporate purposes, while issue expenses of Rs 30 lakh were the smallest category in the rights issue statement.

Was there any unutilised amount or change in the stated objects?

No, Steelco Gujarat reported nil unutilised rights issue proceeds and no change in the stated objects as of September 30, 2026. The company marked as not applicable the fields concerning shareholder approval for a change in the terms or objects of the issue.

The utilisation statement showed Rs 11.60 crore spent on long-term working capital, Rs 3 crore on general corporate purposes and Rs 30 lakh on issue expenses. Those three amounts were identical to the corresponding allocations in the offer document and together equalled the Rs 14.90 crore raised on June 6, 2026.

The fixed-deposit-interest column in the statement, covering financial year 2026-27 through August 30, 2026, was presented with dashes. Steelco Gujarat did not report a separate interest amount in that column, while its September 30, 2026 statement reported no unutilised funds.

The disclosure therefore does not identify an amount awaiting deployment after September 30, 2026. It also does not report any revised object, changed allocation or shareholder-approved amendment to the May 9, 2026 offer-document terms.

What did the auditor examine in Steelco Gujarat’s utilisation statement?

T R Chadha & Co LLP concluded on October 26, 2026 that nothing had come to its attention to indicate that Steelco Gujarat’s utilisation statement was not based on the specified underlying records. The certificate covered the rights issue deviation-or-variation statement for the period through September 30, 2026.

The auditor said it verified the object-of-the-issue clause in the May 9, 2026 letter of offer, invoices and supporting documents for expenses incurred through September 30, 2026, and bank statements for payments made to vendors. It also checked bank statements and confirmations relating to the unutilised position at September 30, 2026.

T R Chadha & Co LLP described its work as a limited-assurance engagement. The firm stated that such procedures vary in nature and timing and are less extensive than those performed in a reasonable-assurance engagement.

The certificate was issued for submission to stock exchanges, the audit committee, the monitoring agency and relevant regulatory authorities. Its conclusion concerned whether the statement was based on the letter of offer, bank statements, vendor invoices and other related records supplied by Steelco Gujarat’s management.

Why does the allocation breakdown matter?

Steelco Gujarat’s filing identifies long-term working capital as the main use of the Rs 14.90 crore rights issue, with Rs 11.60 crore assigned to that object. The remaining Rs 3 crore for general corporate purposes and Rs 30 lakh for issue expenses accounted for the balance of the funds raised on June 6, 2026.

The filing provides a direct comparison between planned and actual use rather than a comparison of operating or financial performance across periods. By September 30, 2026, the company reported the same Rs 11.60 crore, Rs 3 crore and Rs 30 lakh amounts under actual utilisation as it had disclosed in the offer document.

Steelco Gujarat also stated that no deviation existed under the three definitions included in its form: objects of the issue, actual amount used against the disclosed amount, or terms of a contract referred to in the fund-raising document. The audit committee and auditor-comment fields were both recorded as none.

Infomerics Valuation and Rating Limited was named as the monitoring agency in the September 30, 2026 filing. The document does not disclose a separate future spending target because the company reported that all Rs 14.90 crore had already been utilised.

Conclusion

Steelco Gujarat reported complete deployment of its Rs 14.90 crore rights issue proceeds by September 30, 2026, without a deviation from the objects stated in the May 9, 2026 letter of offer. The largest use was Rs 11.60 crore for long-term working capital, followed by Rs 3 crore for general corporate purposes and Rs 30 lakh for issue expenses.

The filing records no unutilised balance, revised allocation or unresolved variance as of September 30, 2026. The next relevant item to watch is any subsequent disclosure by Steelco Gujarat or its named monitoring agency, Infomerics Valuation and Rating Limited, concerning the completed utilisation of the June 6, 2026 rights issue proceeds.