MV Electrosystems Limited has submitted its Monitoring Agency Report for the quarter and half-year ended September 30, 2026. The report, issued by CARE Ratings Limited, details the utilization of funds raised through its Initial Public Offer (IPO). The company confirmed that all proceeds have been utilized as per the objectives outlined in the offer document during Q2FY27.
Monitoring Agency Report Submitted
MV Electrosystems Limited has officially submitted its Monitoring Agency Report for the quarter and half-year ended September 30, 2026. This report, prepared by CARE Ratings Limited, provides an overview of how the funds raised from the company’s Initial Public Offer (IPO) have been utilized.
Fund Utilization Details
The company has confirmed that the IPO proceeds have been utilized in line with the objectives stated in the offer document for the second quarter of the financial year 2026-27 (Q2FY27). The report highlights specific expenditures including Rs. 60.05 crore towards the purchase of electronic equipment, semiconductor devices, and allied products. A portion of this expenditure, amounting to Rs. 44.61 crore, was verified through the monitoring account statement, while Rs. 15.44 crore was clubbed with other transactions.
Breakdown of Expenses
Further details indicate that Rs. 1.20 crore was utilized for general corporate purposes, covering salaries, electricity, and rent. The expenditure on ‘Issue related expenses’ amounted to Rs. 34.37 crore. Notably, Rs. 7.75 crore of these issue-related expenses were reimbursed to directors (Rs. 3.43 crore) and the company’s cash credit account (Rs. 4.32 crore), as these costs were incurred prior to the receipt of IPO proceeds.
Investment of Unutilized Proceeds
The report also details the deployment of unutilized proceeds, which primarily consist of investments in fixed deposits with Indian Overseas Bank and HDFC Bank, maturing between October 2026 and November 2027, with returns ranging from 3.50% to 7.10%. Additionally, monitoring account statements and a Kotak Public Issue Account hold remaining funds.
Implementation of Objects
Regarding the implementation of the objects, the report indicates that activities such as funding long-term working capital, investment in research and development for power electronic equipment, general corporate purposes, and issue-related expenses are all marked as ‘Ongoing’. There were no significant delays noted in the implementation of these objects as of the reporting period.
Source: BSE
