Azad Engineering Limited has provided its monitoring agency report regarding the utilization of ₹700.00 crore raised through its Qualified Institutional Placement (QIP). As of March 31, 2026, the company has utilized ₹540.27 crore toward its stated objectives. The company has secured board approval to extend the timeline for the implementation of the remaining objects from March 31, 2026, to March 31, 2027, citing business alignment as the key factor.
Utilization of Issue Proceeds
Out of the total ₹700.00 crore raised, Azad Engineering has successfully deployed ₹540.27 crore toward capital expenditure and other business requirements. A breakdown of the funds reveals that ₹368.66 crore was directed toward funding capital expenditure, while ₹156.21 crore was utilized for general corporate purposes, and ₹15.40 crore was spent on issue-related expenses as of the end of the quarter ending March 31, 2026.
Timeline Extension and Future Plans
The company maintains an unutilized balance of ₹159.73 crore (excluding interest). To ensure the strategic deployment of these funds, the Board of Directors passed a resolution on February 13, 2026, extending the implementation deadline for the project objects by one year, moving the target completion from March 31, 2026, to March 31, 2027. The management clarified that this deferment is aligned with current business requirements and is not expected to have any adverse impact on the company’s operations or long-term growth trajectory.
Deployment of Surplus Funds
The unutilized portion of the proceeds is currently held in safe, liquid instruments to generate steady returns. Specifically, ₹120.00 crore and ₹40.00 crore are held in fixed deposits with Union Bank of India and Yes Bank Limited, respectively, maturing in mid-April 2026. These investments reflect the company’s prudent approach to treasury management while awaiting the planned utilization of funds for capital projects.
Source: BSE
