Unimech Aerospace and Manufacturing Limited has disclosed a statement regarding the deviation in the utilization of proceeds from its Initial Public Offering (IPO) for the quarter ending December 31, 2025. The company confirmed that a deviation exists and attributed it to a change in utilization objects approved by shareholders on December 17, 2025. This variation was driven by evolving business dynamics necessitating changes in M&A strategy and Greenfield Projects to enhance shareholder value.
Disclosure of IPO Fund Utilization Status
Unimech Aerospace and Manufacturing Limited issued a formal statement concerning the utilization of funds raised through its Initial Public Offering (IPO). This report covers the quarter that concluded on December 31, 2025. The company confirmed that there has been a deviation or variation in the stated objects for which the funds were originally raised.
Shareholder Approval for Variation
This change in fund utilization was made pursuant to the approval received from the shareholders via postal ballot on December 17, 2025. The stated reason for the necessary variation includes adjustments due to evolving business dynamics, compulsions related to certain vendors, and a strategic pivot toward growth via inorganic routes, specifically Mergers and Acquisitions (M&A), Greenfield Projects, and Joint Ventures, aimed at improving market access and diversification.
Detailed Fund Utilization Analysis (In Crores)
The total IPO amount raised was INR 2500 million (or ₹250.00 Crores). The report details how the Original Objects were modified:
- Funding Capital Expenditure for Expansion: The original allocation of ₹36.37 Crores saw utilization of ₹23.54 Crores, resulting in an unutilized balance (deviation) of ₹12.83 Crores for the quarter.
- Working Capital Requirements: The planned ₹25.29 Crores had ₹13.46 Crores utilized, leaving an unutilized balance of ₹11.83 Crores.
- Investment in Material Subsidiary: This segment saw multiple adjustments under the modified objects. The total original allocation for subsidiary investment was substantial. One specific component related to repayment/prepayment of borrowings, originally allocated ₹40.00 Crores, showed no utilization, resulting in a full ₹40.00 Crores variation/unutilized amount.
- General Corporate Purposes and M&A: Allocations for M&A, Joint Ventures, and Green Field Projects saw utilized amounts of ₹61.29 Crores against an intended allocation of ₹61.29 Crores (in the modified column).
Summary of Totals
The total funds raised amounted to ₹250.00 Crores. The total funds utilized as of this reporting date stood at ₹153.30 Crores. Consequently, the total unutilized funds were ₹96.70 Crores, with the deviation/variation reported for the quarter being ₹61.29 Crores (this figure likely refers to the variance in utilization vs. utilization plan for the specific quarter across specific line items).
The report confirms that the Audit Committee and the Board of Directors reviewed and accepted this statement on February 12, 2026.
Source: BSE
