True Colors deploys Rs 106.41 crore of IPO proceeds by Sept. 30

True Colors Limited had utilised Rs 106.41 crore from its Rs 108.86 crore initial public offer, or IPO, by September 30, 2026. The auditor-certified statement records full utilisation of three allocations and Rs 2.45 crore unutilised under general corporate purposes, while separately reporting no deviation or variation in the use of issue proceeds.

How much of True Colors' IPO proceeds had been used?

True Colors had utilised Rs 106.41 crore of the Rs 108.86 crore raised in its IPO as of September 30, 2026, leaving Rs 2.45 crore unutilised. Lakhankiya & Dosi LLP, the statutory auditor, certified the object-wise utilisation in a certificate dated October 30, 2026, based on separate bank-account statements and related documents provided by True Colors.

The disclosed IPO amount was raised on September 26, 2025 through a small and medium enterprise, or SME, IPO. The utilisation certificate covers the half year ended September 30, 2026, while the accompanying deviation statement identifies September 30, 2026 as the quarter-end for which it was filed. Both disclosures use the same Rs 108.86 crore total raised and Rs 106.41 crore utilised figure.

Which True Colors IPO allocations were fully used?

True Colors fully utilised the Rs 48.90 crore allocation described in Annexure A as funding working-capital requirements. This was the largest of the four allocations in the Rs 108.86 crore IPO utilisation table, and it had no unutilised balance at September 30, 2026.

True Colors also fully utilised Rs 41.83 crore that Annexure A describes as repayment or prepayment of all or certain company borrowings. This allocation was Rs 7.07 crore below the Rs 48.90 crore working-capital allocation, but likewise had a nil balance by September 30, 2026.

The Rs 8.16 crore allocation for IPO issue-related expenses was the third fully used category. These three fully utilised allocations totalled Rs 98.89 crore, compared with the Rs 106.41 crore total used, leaving the Rs 7.52 crore used under general corporate purposes as the only partially utilised allocation.

What remains in True Colors' general corporate purposes allocation?

True Colors had Rs 2.45 crore unutilised from the Rs 9.97 crore allocated to general corporate purposes on September 30, 2026. Annexure A records Rs 7.52 crore as actual utilisation for this purpose, unlike the other three objects, each of which shows its full original allocation as utilised.

The filing does not set out the specific use of the Rs 7.52 crore already utilised within general corporate purposes. It also does not provide a timetable or identified application for the Rs 2.45 crore balance, and Annexure A contains no remarks against the Rs 9.97 crore allocation.

The difference in utilisation is therefore limited to the general-corporate-purpose line: its Rs 2.45 crore balance remained unspent, while the Rs 48.90 crore, Rs 41.83 crore and Rs 8.16 crore allocations had zero balances. The filing does not state that the remaining Rs 2.45 crore was reallocated to another IPO object.

Did True Colors disclose any IPO fund-use deviation?

True Colors reported no deviation or variation in the use of IPO funds for the period ended September 30, 2026. The statement on deviation or variation answers “No” to whether there was a deviation or variation in use of the Rs 108.86 crore raised, and shows no modified allocation for the listed objects.

The same statement names Crisil Ratings Limited as the monitoring agency for the Rs 108.86 crore IPO. It records no auditor comments and a dash for audit committee comments after review, while listing Rs 106.41 crore as funds utilised and no amount of deviation or variation against the applicable objects.

The filing defines deviation or variation as a change in the objects or purposes for which funds were raised, a difference in actual use against the original disclosure, or a change in terms of a contract referred to in the offer document. Although Rs 2.45 crore remained unutilised on September 30, 2026, the statement reports no changed allocation from the original Rs 9.97 crore general-corporate-purpose amount.

Why do True Colors' two IPO annexures describe objects differently?

The two annexures attach different object descriptions to the Rs 48.90 crore and Rs 41.83 crore allocations. Annexure A identifies Rs 48.90 crore as working-capital funding and Rs 41.83 crore as repayment or prepayment of borrowings, while recording full utilisation for both by September 30, 2026.

Annexure B instead labels the Rs 48.90 crore line as capital expenditure for setting up a new manufacturing unit. It labels the Rs 41.83 crore line as funding working-capital requirements, even though Annexure A assigns working capital to the Rs 48.90 crore line and borrowings to the Rs 41.83 crore line.

The reported totals remain the same despite this difference: each annexure gives Rs 108.86 crore as the original allocation and Rs 106.41 crore as utilised. The filing provides no correction, reconciliation or explanation for the differing descriptions, including why Annexure B refers to a new manufacturing unit.

The mismatch does not change the disclosed Rs 2.45 crore unutilised balance, because both annexures place that balance under the Rs 9.97 crore general-corporate-purpose allocation. It does, however, leave the source filing unclear on the descriptions attached to the fully utilised Rs 48.90 crore and Rs 41.83 crore allocations.

Conclusion

True Colors had utilised Rs 106.41 crore of its Rs 108.86 crore IPO proceeds by September 30, 2026. The auditor-certified Annexure A shows full use of Rs 48.90 crore for working capital, Rs 41.83 crore for borrowings and Rs 8.16 crore for IPO expenses, with Rs 2.45 crore remaining from the Rs 9.97 crore general-corporate-purpose allocation.

The next utilisation disclosure will show whether True Colors applies the remaining Rs 2.45 crore. The unresolved matter in the October 30, 2026 filing is the difference between Annexure A and Annexure B over the stated purposes of the Rs 48.90 crore and Rs 41.83 crore allocations.