Azad Engineering Limited has submitted the Monitoring Agency Report, prepared by CareEdge Ratings Limited, concerning the utilization of proceeds from its Qualified Institutions Placement (QIP). The report covers the quarter ended December 31, 2025. As of this date, ₹493.66 crore of the total ₹700.00 crore raised has been utilized towards the stated objects, primarily capital expenditure.
Submission of QIP Monitoring Report
Azad Engineering Limited has formally submitted its Monitoring Agency Report to the stock exchanges for the third quarter ending December 31, 2025. This report details the utilization of funds raised through the Qualified Institutions Placement (QIP), which aggregated to ₹700.00 crore.
The Audit Committee and the Board of Directors reviewed and noted this monitoring report during their meeting held on February 13, 2026.
Utilization of Proceeds Overview
The Monitoring Agency confirmed that funds utilized align with the objects disclosed in the Offer Document, with Rs.493.66 crores utilized towards the placement’s objectives. The remaining unutilized balance is maintained in Fixed Deposits and the Monitoring Agency account.
Detailed Utilization by Object (as of December 31, 2025)
The primary focus of utilization during the quarter was Capital Expenditure:
- Funding and part-funding capital expenditure: ₹109.03 crore was utilized during the quarter, bringing the total utilized amount for this object to ₹322.71 crore against the proposed ₹525.00 crore. The unutilized balance stood at ₹202.29 crore.
- General Corporate Purposes: No amount was utilized during the quarter, as the allocated ₹156.21 crore was fully utilized in previous periods.
- Issue Expenses: ₹7.92 crore was utilized during the quarter towards issue expenses, bringing the total utilized amount to ₹14.74 crore against the proposed ₹18.79 crore.
The Total unutilized proceeds amounted to ₹206.34 crore (excluding interest earned of ₹2.50 crore on deployments).
Deployment of Unutilized Proceeds
The unutilized funds totaling ₹206.67 crore were deployed across various fixed deposits with maturity dates, primarily around January 13, 2026, earning returns between 5.50% and 6.30%.
Monitoring Agency Commentary on Delays
The Monitoring Agency noted a potential delay in the implementation timeline for the capital expenditure object. As of December 31, 2025, 61.5% of the amount allocated for the capex object had been spent.
The Board of Directors provided commentary stating that the timing of utilization remains aligned with business requirements. They confirmed that expenditure included procuring plant and machinery with different technological specifications, funded from sources other than QIP proceeds. The Board expressed confidence that the deferment in utilization will not have any adverse impact on operations or growth, and the non-utilization is solely attributable to timing considerations.
General Corporate Purpose (GCP) Utilization
The report confirms that during the quarter, no amount was utilized towards GCP, as the entire proposed amount had already been fully utilized by the end of the previous quarter.
Source: BSE
