Azad Engineering Limited has submitted its Monitoring Agency Report for the quarter ended June 30, 2026, concerning the utilization of proceeds from its Qualified Institutional Placement (QIP). The report confirms that ₹589.42 crore has been utilized towards the placement’s objects, with the balance held in Fixed Deposits and a monitoring agency account. A board resolution approved an extension for capital expenditure utilization to March 31, 2027.
QIP Proceeds Utilization Report Filed
Azad Engineering Limited has officially released its Monitoring Agency Report for the quarter concluding on June 30, 2026. This report details the utilization of funds raised through the company’s Qualified Institutional Placement (QIP). The monitoring agency, CARE Ratings Limited, has reviewed the fund deployment in line with SEBI regulations and the QIP offer document.
Key Utilization Figures
As per the report, a sum of ₹589.42 crore has been utilized for the stated objects of the QIP. The remaining funds are maintained in Fixed Deposits and a dedicated monitoring agency account. The total issue size was ₹700.00 crore, with ₹107.88 crore remaining unutilized as of June 30, 2026.
Extension of Implementation Timeline
The report highlights that the utilization timeline for capital expenditure was initially set for March 31, 2026. However, the Board of Directors, through a resolution dated February 13, 2026, approved an extension of this implementation timeline to March 31, 2027. This deferment is not expected to adversely impact the company’s operations or growth.
Objects Monitored
The primary objects monitored include funding capital expenditure and general corporate purposes. For capital expenditure, ₹525.00 crore was initially allocated, with ₹417.12 crore utilized by the end of the quarter, leaving ₹107.88 crore unutilized. General corporate purposes received ₹156.21 crore, all of which remained unutilized at the end of the quarter. Issue expenses amounted to ₹18.79 crore, with ₹16.09 crore utilized, leaving ₹2.70 crore unutilized.
Deployment of Unutilized Proceeds
The unutilized proceeds, totaling ₹110.58 crore (excluding interest income), are deployed across various instruments. This includes ₹0.70 crore in the Monitoring Agency Account, ₹80.00 crore in a Fixed Deposit with HDFC Bank, and ₹31.00 crore in a Fixed Deposit with Yes Bank Limited.
Source: BSE
