Assertion Supported AI assessment confidence: 95% certainty 4/5 debate potential 1/5

Singh: Indian IPO rules mandate deploying primary capital within two years

Neha Singh · The Process & Preparation of IPO Ft. Tracxn Technologies Founders Neha Singh & Abhishek Goyal · Oct 25, 2022 · at 27:18

Neha Singh, co-founder of Tracxn, explains why the company opted for a pure Offer for Sale (OFS) rather than raising primary capital during its Indian IPO.

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“If you raise primary in the IPO, then you have to use it in the next one to two years, and that is basically monitored also. So, you know, you have to give the use of proceeds initially, you have to use it for those, and you cannot, unlike financing the private market, you cannot just keep it for unallocated items initially, and then use it You know, at some point in time, you have to actually expense it in the next one to two years.”

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The claim, plainly

Companies raising primary capital in an Indian IPO must declare specific use of proceeds and fully deploy the capital within one to two years under regulatory monitoring.

a quote alone can be ambiguous, so this restates it with the references and context of the conversation around it resolved. AI-written; the tape below the player is the source.

Assessment

Under the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018 (SEBI ICDR Regulations), companies raising primary capital through an IPO must disclose specific 'Objects of the Issue' along with a defined 'Schedule of Implementation' and 'Deployment of Funds' (typically spanning one to two financial years). Under Regulation 7(2) and the January 2022 amendments, unallocated General Corporate Purpose (GCP) funds are capped at 25% (and a combined 35% limit with unidentified acquisitions). Furthermore, under Regulation 41, issues exceeding ₹100 crore must appoint a SEBI-registered Credit Rating Agency as a monitoring agency to track quarterly fund utilization until 100% of the proceeds are fully deployed according to the stated objects.

SEBI ICDR Regulations (Regulation 7 and Schedule VI/VIII) require specific disclosure of the Objects of the Issue and deployment schedules.
SEBI ICDR Regulations cap General Corporate Purposes at 25% of fresh issue proceeds (and 35% combined with unidentified acquisitions per the January 2022 amendment).
Regulation 41 mandates quarterly monitoring by a Credit Rating Agency until 100% of proceeds are deployed.

Checked against

[1] trilegal.com [2] enterslice.com [3] scribd.com [4] ca2013.com [5] nseindia.com [6] scribd.com [7] azbpartners.com [8] xtranetindia.com

SEBI monitoring agency utilization of issue proceeds Credit Rating Agency quarterly report 100 percent "General Corporate Purposes" 25% 35% SEBI ICDR "objects of the issue" SEBI ICDR regulations use of proceeds objects of the issue General corporate purpose monitoring agency 2022 SEBI ICDR Regulations Schedule of Implementation and deployment of funds monitoring agency Credit Rating Agency "Schedule of implementation" "deployment of funds" SEBI ICDR

assessed as of 2026-09-02

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