Cyient DLM Limited has submitted the Monitoring Agency Report prepared by ICRA for the quarter ended December 31, 2025 (Q3 FY2026). The report confirms that the utilization of the Initial Public Offer (IPO) proceeds has remained in line with the stated objects of the issue with no material deviation observed. The total issue size was ₹700.00 Crore, leading to net proceeds of ₹658.963 Crore, which were later revised to ₹663.154 Crore due to lower-than-estimated Issue-Related Expenses (IRE).
Issuance Context and Reporting Period
This disclosure by Cyient DLM Limited covers the Monitoring Agency Report for the quarter ending December 31, 2025. The report, prepared by ICRA Limited, relates to the company’s Initial Public Offer (IPO) conducted in June 2023. The IPO aimed to raise a total of ₹700.00 Crore. The Monitoring Agency confirmed that all utilization of funds aligns with the original disclosures made in the Offer Document.
Financial Summary of IPO Proceeds
The initial net proceeds, excluding Issue Related Expenses (IRE), were reported as INR 658.963 Crore. However, because the actual IRE incurred were lower than estimated by INR 4.191 Crore, the revised Net Proceeds being monitored stand at INR 663.154 Crore. The Board noted this higher net proceeds figure, attributing the increase to the lower expenditure on the IPO process itself.
Allocation of IPO Funds (Revised)
The total revised amount allocated across the five primary objects was ₹663.154 Crore. The utilization breakdown shows the following key allocations:
- Funding incremental working capital requirements: ₹291.090 Crore
- Funding capital expenditure: ₹43.572 Crore
- Repayment/prepayment of borrowings: ₹160.911 Crore
- Achieving inorganic growth: ₹70.000 Crore
- General Corporate Purpose: ₹97.581 Crore
Progress in Object Implementation (Q3 FY2026)
As of the end of the quarter, total utilization stood at ₹618.027 Crore, leaving an unutilized amount of ₹45.127 Crore.
Specific progress notes include:
- Working Capital: ₹282.867 Crore was utilized out of ₹291.090 Crore proposed. The remaining ₹8.223 Crore is pending deployment due to alignment with the working capital cycle requirements. The Board confirmed the balance will be used for these purposes as stated.
- Capital Expenditure (Capex): ₹6.725 Crore was utilized out of ₹43.572 Crore proposed. The issuer confirmed Capex utilization will occur during the financial years FY25-26 & FY26-27.
- Repayment/Prepayment: Utilization was nearly complete at ₹160.854 Crore against a proposal of ₹160.911 Crore, leaving a minor unutilized amount of ₹0.057 Crore.
- Inorganic Growth & General Corporate: Both these heads showed full utilization of the amounts proposed for this period, with ₹70.000 Crore and ₹97.581 Crore utilized, respectively.
Deployment of Unutilized Proceeds
The unutilized portion totaling ₹45.681 Crore (as per certification) has been deployed into short-term instruments to earn interest while awaiting deployment for the objects. The assets include a Fixed Deposit with Federal Bank (invested ₹45.000 Crore, earning 6.35% return) and amounts parked with the Monitoring Agency and Escrow Accounts.
Timeline Compliance
One object, Funding incremental working capital requirements (originally due by FY24-FY25), is currently showing a delay of 9 Months. The reason cited is the pending deployment aligned with the working capital cycle, ensuring funds are not idle unnecessarily.
Source: BSE
