Monitoring Agency Findings

  • Infomerics Valuation and Rating Limited confirmed no deviations or variations in the utilization of IPO proceeds during Q1FY27 (quarter ended June 30, 2026)
  • The monitoring was conducted under Regulation 262 of SEBI ICDR Regulations and Monitoring Agency Agreement dated July 25, 2025
  • Range of deviation: Nil
  • Deviation from objects: Nil

IPO Details

  • Issue Period: July 08, 2025 – July 10, 2025
  • Type of Issue: Initial Public Offering (IPO)
  • Security Type: Equity shares
  • Total Proceeds Received: ₹62.94 crores
  • Issue Expenses: ₹6.35 crores
  • Net Proceeds Available for Utilization: ₹56.59 crores
  • Fresh Issue: 63,43,200 Equity Shares at ₹97.00 per share
  • Employee Reservation: 1,53,600 shares at ₹92.00 per share

Fund Utilization Structure

  • Total Net Proceeds: ₹56.59 crores
  • Utilized till Q4FY26 (March 31, 2026): ₹33.74 crores
  • Utilized in Q1FY27 (June 30, 2026): ₹10.26 crores
  • Total Utilized to Date: ₹44.00 crores
  • Unutilized Amount as of June 30, 2026: ₹12.59 crores

Complex Fund Flow Arrangement

The company established a complex fund management structure:

  • IPO proceeds transferred from public account to monitoring account with HDFC Bank
  • Funds partially transferred to Fixed Deposits
  • Two Overdraft facilities opened with HDFC Bank and ICICI Bank against Fixed Deposit security
  • Funds transferred from overdraft facilities to various Cash Credit/Overdraft, EEFC and Current accounts with HDFC Bank, ICICI Bank, and Axis Bank
  • All payments for project expenses made through these accounts rather than directly from monitoring account
  • Resulted in commingling of funds requiring reliance on Management Certificate and CA verification

Object-wise Utilization

1. Setting up New Manufacturing Facility

  • Original Allocation: ₹47.73 crores
  • Utilized till Q4FY26: ₹24.88 crores (includes ₹4.57 crores pre-IPO expenditure)
  • Utilized in Q1FY27: ₹10.26 crores
  • Total Utilized: ₹35.14 crores
  • Balance Unutilized: ₹12.59 crores
  • Utilization Purpose: Advance payment towards project, site development, building expenses, purchase of plant and machinery, and other pre-operative expenses
  • Project Location: Mouza-Patinan, JL No: 39, PS Bagnan, Mankur Road, Gram Panchayat: Sabsit, PIN - 711303, West Bengal
  • Total Project Cost: ₹100.22 crores
  • Pre-IPO Expenditure (till May 31, 2025): ₹2.49 crores
  • Funding Structure: ₹47.73 crores from IPO proceeds, ₹50.00 lakhs from borrowings

2. General Corporate Purpose

  • Original Allocation: ₹8.86 crores
  • Fully Utilized: ₹8.86 crores (completed in previous quarters)
  • Balance Unutilized: ₹0.00

Deployment of Unutilized Proceeds

  • Unutilized Amount: ₹12.59 crores
  • Fixed Deposits Held: ₹32.00 crores (exceeding unutilized amount due to interest accrual)
  • Fixed Deposit Details:
  • HDFC Bank FD (50301194410408): ₹2.00 crores, maturity July 30, 2026, ROI 6.25%
  • HDFC Bank FD (50301191853609): ₹2.80 crores, maturity July 23, 2026, ROI 6.25%
  • HDFC Bank FD (50301191854970): ₹2.80 crores, maturity July 24, 2026, ROI 6.25%
  • HDFC Bank FD (50301191852632): ₹2.80 crores, maturity July 25, 2026, ROI 6.25%
  • HDFC Bank FD (50301191852007): ₹2.80 crores, maturity July 26, 2026, ROI 6.25%
  • HDFC Bank FD (50301191851122): ₹2.80 crores, maturity July 27, 2026, ROI 6.25%
  • ICICI Bank FD (000610093569): ₹16.00 crores, maturity July 22, 2026, ROI 6.30%
  • Total Fixed Deposit Value including interest: ₹32.19 crores

Project Timeline Revision

  • Original Completion Date: Q4 FY2025-26
  • Revised Completion Date: Q3 FY2026-27
  • Reason for Delay: SIR and elections in West Bengal caused delays in building plan approval from regulatory authorities
  • Regulatory Filing: Company filed intimation under Regulation 30 read with Schedule III, Part A and Part B of SEBI LODR Regulations on June 30, 2026
  • Permissible Extension: Offer document allows utilization extension of one year beyond stipulated timeline
  • Board Approval: Revision approved through Board Resolution

Verification and Certifications

  • Statutory Auditor: Vivek Jaiswal & Co., Chartered Accountants (FRN: 323094E)
  • CA Certificates Dated: November 05, 2025; January 28, 2026; May 06, 2026; July 24, 2026
  • Management Certificate: Relied upon for fund utilization verification due to commingling of funds

Monitoring Agency Declaration

Infomerics Valuation and Rating Limited declared:

  • No direct/indirect interest or relationship with issuer/promoters/directors/management
  • No perceived conflict of interest
  • Report provides true and fair view of utilization of issue proceeds
  • Reliance on information provided by issuer and sources believed to be accurate
  • No audit performed or independent verification conducted