In my opinion, out of 75 crores QIP funds, they have prepaid long term loans of Rs. 16 crores. Of rest 59 crores, 16 crores would be indirectly used for purchase of land from celebrity, and remaining for working capital requirements, advt campaign spend and new product launch expense. Its very important that they use this funds productively to improve efficiency and volumes of their business. We need to keep close watch on where these funds are getting used.
Normally in QIP, company sees proper market conditions and raises funds for their requirements of next couple of years. So that funds will be gradually used. Proper use of funds is very crucial.
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