True Colors Ltd IPO Proceeds Used as Planned, Deviation Resolved

True Colors Limited has confirmed its Initial Public Offering (IPO) proceeds have been utilized in line with its placement document, according to a Monitoring Agency Report from CRISIL Ratings for the quarter ending March 31, 2026. The company also successfully resolved a prior deviation related to the temporary placement of Rs. 20 crore.

As of March 31, 2026, Rs. 73.70 crore of the total IPO net proceeds, amounting to Rs. 100.70 crore, had been deployed. The remaining Rs. 25.00 crore is currently held in fixed deposits.

The report details that during Fiscal Year 2026, the company utilized Rs. 28.90 crore of the proposed Rs. 48.90 crore for working capital funding. Additionally, Rs. 41.83 crore was used to repay borrowings, fully deploying the allocated amount. General Corporate Purposes (GCP) saw Rs. 4.97 crore utilized out of the proposed Rs. 9.97 crore during the same period.

A minor deviation was previously noted where Rs. 20 crore had been parked in a co-operative bank not scheduled by the RBI, diverging from the offer document's terms. This issue has since been rectified by the quarter's end.

The confirmation of IPO fund utilization reinforces the company's financial discipline and governance post-listing, assuring investors that capital is being managed responsibly. The prompt rectification of the deviation also underscores True Colors' commitment to regulatory compliance and transparency.

Investors will continue to monitor the planned deployment of the remaining Rs. 5.00 crore earmarked for General Corporate Purposes in Fiscal Year 2027. The pace of this deployment may offer insights into the company's specific objectives for these funds.