KEI Update: QIP Funds Utilized, Sanand Project Delayed

KEI Industries Limited confirmed the utilization of Qualified Institutional Placement (QIP) proceeds in its Monitoring Agency Report for the quarter ended September 30, 2025. Of the total QIP issue size of Rs. 2,000.00 crore, Rs. 1,269.14 crore has been utilized, leaving an unutilized amount of Rs. 730.86 crore.

A significant portion of the utilization, Rs. 723.59 crore, was directed towards partially funding a cable manufacturing facility at Sanand, Ahmedabad, with Rs. 269.30 crore incurred in Q2FY26. The company also fully repaid or pre-paid outstanding borrowings amounting to Rs. 275.99 crore and utilized Rs. 235.19 crore for General Corporate Purposes, including Rs. 85.93 crore in Q2FY26 for raw material purchases. Issue-related expenses amounted to Rs. 34.37 crore.

Funds incurred towards the Sanand capital expenditure fell short of the amount specified in the placement document due to revised project drawings and designs, extending the delivery schedule for plant and machinery. Phase 2 of the Sanand project is now expected to commence in Q4FY27. The project status and reasons for delay will be reviewed at the board meeting scheduled for October 15, 2025.