Azad Engineering Limited has submitted its monitoring agency report for the quarter ended September 30, 2026, detailing the utilization of proceeds raised through its Qualified Institutional Placement (QIP). The report, issued by CARE Ratings Limited, confirms that fund utilization is generally in line with the offer document’s disclosures, with a minor deferment in capital expenditure implementation timeline.
Azad Engineering Files QIP Proceeds Utilization Report
Azad Engineering Limited has officially disclosed its monitoring agency report concerning the utilization of funds raised through its Qualified Institutional Placement (QIP). The report, covering the financial quarter ending September 30, 2026, was prepared by CARE Ratings Limited, the designated monitoring agency.
Fund Utilization Status
The report indicates that the company’s utilization of QIP proceeds is largely consistent with the disclosures made in the Offer Document. As of September 30, 2026, an amount of ₹75.54 crore remained unutilized. This figure represents a decrease from the ₹107.88 crore unutilized as of June 30, 2026.
Capital Expenditure Timeline Extension
A key point in the report highlights an extension for the utilization of funds towards capital expenditure. While the original timeline was set for completion by March 31, 2026, the Board of Directors, through a resolution dated February 13, 2026, approved an extension of this implementation timeline to March 31, 2027. The Board views this deferment as aligned with business requirements and not expected to adversely impact the company’s operations or growth.
Objects of the Issue
The primary objects of the QIP funds include funding and part-funding capital expenditure for the company and general corporate purposes. The total original cost for these objects was ₹700.00 crore. As of the reporting date, the unutilized amount for capital expenditure stands at ₹75.54 crore, while ₹2.70 crore remains unutilized for General Corporate Purposes.
Unutilized Proceeds Deployment
The unutilized proceeds are currently deployed in various instruments, including a balance in the Monitoring Agency Account (₹3.67 crore) and fixed deposits with HDFC Bank Limited (₹13.00 crore and ₹30.00 crore), and Yes Bank Limited (₹33.00 crore). The total unutilized proceeds, including interest income, amount to ₹79.67 crore, with interest earned on unutilized proceeds at ₹1.43 crore.
Source: BSE
