The statement was reviewed by the Audit Committee and taken on record by the Board of Directors.
Issue Details
The company's IPO was a public issue of equity shares with an issue size of ₹9,109.80 lakhs. The issue period was from September 11, 2025 to September 15, 2025.
Utilization Status
As of June 30, 2026, the net IPO proceeds amounted to ₹8,884.80 lakhs. Of this amount:
- ₹8,882.21 lakhs was transferred from the Public Issue Account to the Monitoring Agency Account
- ₹2.59 lakhs (net proceeds) remained in the Public Issue Account
Out of the transferred proceeds:
- ₹7,808.10 lakhs has been utilized
- ₹90.00 lakhs is held in fixed deposit receipts
- The company earned ₹2.86 lakhs in interest during the quarter
- The balance of ₹986.97 lakhs is lying in the monitoring agency account, including ₹2.86 lakhs as earned interest
Object-wise Utilization
1. Repayment of loan
- Original cost: ₹600.00 lakhs
- Amount utilized: ₹600.00 lakhs (100%)
- No amount remains unutilized
2. Working Capital
- Original cost: ₹5,927.02 lakhs
- Amount utilized: ₹5,927.02 lakhs (100%)
- No amount remains unutilized
3. Capital Expenditure
- Original cost: ₹1,367.78 lakhs
- Amount utilized: ₹291.08 lakhs
- Unutilized amount: ₹1,076.70 lakhs
- Reason for idle funds: Remaining amount is for new orders
- Proposed course of action: Payable on delivery of equipment/placing of orders
4. General Corporate Funds
- Original cost: ₹990.00 lakhs
- Amount utilized: ₹990.00 lakhs (100%)
- No amount remains unutilized
Deployment of Unutilized Proceeds
The unutilized amount of ₹1,076.70 lakhs is deployed as follows:
1. Fixed Deposit with Axis Bank (925040105382542): ₹50.00 lakhs, maturity July 6, 2026, earned ₹6.31 lakhs (3.00% return), market value ₹56.31 lakhs
2. Fixed Deposit with Axis Bank (925040105413413): ₹40.00 lakhs, maturity July 6, 2026, earned ₹6.07 lakhs (3.00% return), market value ₹46.07 lakhs
3. Monitoring Agency Account (Axis Bank 925020041866195): ₹984.11 lakhs
4. Public Issue Account (Axis Bank 925020039322902): ₹2.59 lakhs
Total market value of unutilized proceeds: ₹1,089.08 lakhs
Delay in Implementation
The capital expenditure object has been delayed. As per the offer document, completion was scheduled for Fiscal 2025-26 for ₹1,076.70 lakhs. The actual completion is now expected by the end of Fiscal 2027.
Reason for delay: Recent policy changes made by the Chinese Government, coupled with prevailing market conditions affecting supplier capacity and lead times. The management has decided to defer the orders of new machinery.
Proposed course of action: The company expects to complete the purchase by end of Fiscal 2027. The prospectus specifies that if net proceeds are not completely utilized for the objects in the stated period, such amounts will be utilized (in part or full) in Financial Year 2027-28 in accordance with applicable law.
Auditor Certification
The statement was certified by Varadarajan & Co, Chartered Accountants (ICAI Firm Registration No.: 004515S), who declared that the report provides a true and fair view of the utilization of issue proceeds and that they have no direct/indirect interest in or relationship with the issuer/promoters/directors/management.