Techno Electric & Engineering Company Limited submitted its Monitoring Agency Report, prepared by CARE Ratings Limited, detailing the utilization of the ₹1,250 crore raised through the Qualified Institutional Placement (QIP). For the quarter ended December 31, 2025, the report noted a key deviation: the reallocation of funds originally earmarked for the NERGS I project, which was cancelled by the Government of India, towards a data center EPC project in Chennai. The total unutilized proceeds at the end of the quarter stood at ₹226.68 crore, which are currently deployed in short-term mutual funds.
Monitoring Report Submission Overview
Techno Electric & Engineering Company Limited has submitted the mandatory report regarding the utilization of proceeds from its Qualified Institutional Placement (QIP), which aggregated to ₹1,250 crores. This submission, dated February 16, 2026, covers the performance for the quarter ending December 31, 2025, as certified by the Monitoring Agency, CARE Ratings Limited.
Key Deviations Noted in Fund Allocation
The Monitoring Agency confirmed deviations from the original objects detailed in the Offer Document. A significant change involved the NERGS I project, for which ₹200 crore was originally allocated. Following the cancellation of this project by the Government of India, these funds were reallocated. Specifically, the investment planned for subsidiary NERES XVI Power Transmission Limited was reduced from ₹400 crore to ₹200 crore. This ₹200 crore was redirected to the subsidiary Techno Infra Developers Private Limited for funding EPC works on a data center situated in Chennai, revising that allocation from ₹350 crore to ₹550 crore. The company confirmed that Board approval was obtained for these required changes.
Progress on Original Objects (Q3 FY2026)
The utilization progress across the objects for the quarter ending December 31, 2025, highlights specific deployment:
- Investment in NERES XVI/NERGS-I (Original Budget: ₹400 Crore): The total amount utilized reached ₹191.68 crore, with only ₹0.16 crore utilized during the current quarter for land acquisition.
- Investment in Techno AMI Solutions (Original Budget: ₹200 Crore): This object remained fully utilized (₹200.00 crore), with no utilization recorded in the current quarter.
- Investment in Data Center (Original Budget Revised to ₹550 Crore): A total of ₹550.00 crore has been utilized against the revised cost, with ₹35.00 crore utilized during the quarter.
- General Corporate Purposes (GCP) (Original Budget Revised to ₹274.93 Crore): The total utilization for GCP reached ₹274.93 crore, with no utilization reported during the quarter, indicating the proceeds earmarked for GCP have been fully utilized.
Unutilized Proceeds and Deployment
The Total Unutilized Amount at the end of the quarter stood at ₹226.68 crore. The company has deployed these temporary funds into creditworthy instruments:
- ICICI (Ultra Short-Term Fund DP Growth): ₹95.43 crore invested, yielding an earnings return of 10.48%.
- Axis Ultra Short Duration Fund – Direct Growth: ₹131.25 crore invested, yielding an earnings return of 14.37%.
The total amount invested across these instruments is ₹226.68 crore, reflecting an average earning of 10.96%.
Timeline Adherence
The report notes delays for two objects, although the Board of Directors provided no comments on the reasons for the delay:
- NERES XVI/NERGS-I EPC Works: A delay was noted, with the exact number of days not ascertainable, due to the cancellation of the NERGS I project.
- Data Center Funding: A delay was noted in the timeline for deploying ₹300 crore, with the exact number of days not ascertainable, though the funds were later deployed by March 2025.
The object related to Techno AMI Solutions projects was reported as fully utilized by March 25, 2025, within the stated timelines.
Source: BSE
