The company's IPO was conducted from September 11, 2025, to September 15, 2025, with an issue size of ₹9,109.80 lakhs and net proceeds of ₹8,884.80 lakhs. The proceeds were allocated for four objects: 1) Capital expenditure towards purchase of machinery and equipment (₹1,367.78 lakhs), 2) Repayment of borrowings (₹600.00 lakhs), 3) Working capital requirements (₹5,927.02 lakhs), and 4) General Corporate Purposes (₹990.00 lakhs).
As of September 30, 2026, the utilization status is as follows:
- Capital expenditure: ₹291.08 lakhs utilized (21.28% of allocated amount), with ₹1,076.70 lakhs unutilized
- Repayment of borrowings: ₹600.00 lakhs fully utilized (100%)
- Working capital requirements: ₹5,927.02 lakhs fully utilized (100%)
- General Corporate Purposes: ₹990.00 lakhs fully utilized (100%)
The total unutilized amount of ₹1,076.70 lakhs (pertaining only to the capital expenditure object) is deployed as follows:
- ₹50.00 lakhs in Fixed Deposit with Axis Bank (A/c: 925040105382542), matured on July 6, 2026, earning ₹6.31 lakhs interest at 3.00% return
- ₹40.00 lakhs in Fixed Deposit with Axis Bank (A/c: 925040105413413), matured on July 6, 2026, earning ₹6.07 lakhs interest at 3.00% return
- ₹984.11 lakhs in Monitoring Account with Axis Bank (A/c: 925020041866195)
- ₹2.59 lakhs in Public Issue Account with Axis Bank (A/c: 925020039322902)
Delay in Implementation: The company has reported a delay in implementing the capital expenditure object. As per the prospectus dated September 16, 2025, the entire ₹1,367.78 lakhs was estimated to be utilized by Fiscal 2026. However, only ₹291.08 lakhs has been utilized as of Q2 FY27. The delay is attributed to recent policy changes introduced by the Chinese Government and prevailing market conditions affecting supplier capacity and lead times. The management has deferred placement of orders and now expects to complete the procurement by the end of Fiscal 2027.
Additional Account Details:
- The Public Issue Account balance of ₹20.51 lakhs comprises ₹2.59 lakhs net proceeds and ₹17.92 lakhs issue expenses
- The Monitoring Account balance of ₹986.97 lakhs comprises ₹984.11 lakhs net proceeds and ₹2.86 lakhs interest from fixed deposit redemptions
- The company confirms no lien has been created on any proceeds
- No amount was utilized from General Corporate Purposes during the quarter
The statement has been reviewed by the Audit Committee and taken on record by the Board. The statutory auditors, Varadarajan & Co (Firm Registration No: 004515S), have issued a certificate confirming that the utilization of net proceeds is in agreement with the unaudited books of account and in accordance with the purposes mentioned in the IPO prospectus.