Unitec Fibres uses Rs 29.90 crore to repay Kotak term loan

Unitec Fibres Limited used Rs 29.90 crore of initial public offer proceeds to repay its Kotak Mahindra Bank Limited term loan on 5 and 6 October 2026, after listing on BSE Limited’s SME Platform on 30 September 2026. Unitec Fibres reported that Rs 12.64 lakh remained in its public issue account as at 7 October.

How did Unitec Fibres use its IPO proceeds?

Unitec Fibres transferred Rs 29.90 crore to its account on 5 and 6 October 2026 and used the funds to repay the term loan availed from Kotak Mahindra Bank Limited. The company said the repayment was in line with the IPO objects stated in its offer document.

The repayment followed an IPO of 39,16,800 equity shares at Rs 88 a share, including a premium of Rs 78 a share. The shares were allotted on 28 September 2026 and listed on the SME Platform of BSE Limited on 30 September 2026. The offer document stated total IPO proceeds of Rs 34.47 crore.

Unitec Fibres also said Rs 4.44 crore of total proceeds was paid towards merchant banker fees and other issue expenses. After the stated expense payment and Rs 29.90 crore loan repayment, Rs 12.64 lakh remained in the public issue account on 7 October 2026. The loan repayment was therefore the largest disclosed use of the IPO proceeds.

What was the IPO funding trail at September-end?

Unitec Fibres said Rs 34.44 crore of IPO proceeds received up to 30 September 2026 was held in a public issue or escrow account with Kotak Mahindra Bank Limited. The company said those funds were not available for use as at the 30 September reporting date.

The utilisation table states that total proceeds under the offer document were Rs 34.47 crore and that Rs 2.42 lakh was received in October 2026. Separately, the narrative says the balance IPO proceeds received in October were Rs 2.82 lakh. Unitec Fibres did not explain the Rs 0.40 lakh difference between the October receipt figures.

The half-year cash-flow statement records Rs 3.91 crore of proceeds from issue of share capital and Rs 30.53 crore of securities premium received in the six months ended 30 September 2026. It also records IPO expenses paid of Rs 42.98 lakh during that period. These cash-flow entries precede the 5 and 6 October transfer for the Kotak term-loan repayment.

How did borrowings change before the October repayment?

Unitec Fibres reported long-term borrowings of Rs 10.02 crore at 30 September 2026, down from Rs 51.59 crore at 31 March 2026. Because the reported balance-sheet date was before the 5 and 6 October payment, it does not show the effect of the subsequent Rs 29.90 crore transfer.

Short-term borrowings also declined, to Rs 19.85 crore at 30 September from Rs 25.60 crore at 31 March 2026. Total shareholders’ funds increased to Rs 99.21 crore from Rs 65.10 crore over the same period, while cash and cash equivalents rose to Rs 34.58 crore from Rs 10.48 lakh. The filing does not provide a borrowing balance after 7 October.

Capital work-in-progress increased to Rs 66.68 crore at 30 September 2026 from Rs 44.93 crore at 31 March 2026. Property, plant and equipment fell to Rs 42.92 crore from Rs 44.39 crore, while total assets rose to Rs 242.13 crore from Rs 169.35 crore. These movements show changes in both the company’s asset base and funding position before the October debt repayment.

What operating results accompanied the IPO deployment?

Unitec Fibres reported revenue from operations of Rs 121.16 crore for the half year ended 30 September 2026, compared with Rs 111.72 crore in the corresponding six months ended 30 September 2025. Profit for the period increased to Rs 4.28 crore from Rs 3.73 crore, while profit before tax rose to Rs 5.88 crore from Rs 5.58 crore.

Finance costs increased to Rs 1.32 crore in the September 2026 half year from Rs 78.21 lakh a year earlier. Cost of materials consumed was Rs 83.29 crore, compared with Rs 71.26 crore, and other expenses were Rs 24.68 crore versus Rs 24.81 crore. Unitec Fibres reported one business and geographical segment, Polyester Staple Fibre and related products in domestic and export markets.

Basic and diluted earnings per share were Rs 4.05 for the half year ended 30 September 2026, compared with Rs 3.55 in the corresponding prior-year half year. Unitec Fibres said half-year earnings per share were calculated using the weighted-average number of outstanding equity shares and were not annualised. Paid-up equity share capital stood at Rs 14.42 crore at 30 September, against Rs 10.50 crore at 31 March.

What review and disclosure matters remain?

Unitec Fibres said its Audit Committee reviewed, and its board approved, the unaudited half-year results on 14 November 2026. GMCS & Co. conducted a limited review and said nothing had come to its attention indicating that the statements lacked disclosures required under Regulation 33 or contained a material misstatement.

The auditor noted that the corresponding half year ended 30 September 2025 and the preceding half year ended 31 March 2026 were approved by the board but had not been reviewed or audited by it. The company’s equity shares were listed on 30 September 2026, and the auditor said the year ended 31 March 2026 figures were based on financial statements that it had audited.

Unitec Fibres also said it had not provided interest on delayed payments to micro and small enterprises under Section 16 of the Micro, Small and Medium Enterprises Development Act, 2006 for the half year ended 30 September 2026. The company said it would determine and provide for that interest at the end of the financial year.

Conclusion

Unitec Fibres completed a Rs 34.47 crore IPO, held Rs 34.44 crore in its escrow account at 30 September 2026, and subsequently applied Rs 29.90 crore to repay a Kotak Mahindra Bank term loan. It also disclosed Rs 4.44 crore of merchant banker fees and other issue expenses, leaving Rs 12.64 lakh in the issue account as at 7 October 2026.

The next filing to watch is the financial year-end result, when Unitec Fibres plans to determine interest payable to micro and small enterprises. Investors may also seek clarification of the Rs 0.40 lakh difference between the October IPO-receipt figures and updated borrowing balances following the October loan repayment.