Balu Forge Industries Limited has submitted its Monitoring Agency Report for the quarter ending December 31, 2025, regarding the utilization of proceeds from its Preferential Issue. The report confirms that there was Nil deviation from the originally earmarked objects. All funds utilized during the quarter aligned perfectly with the disclosures made in the Offer Document. The total funds raised via subscription for the period stood at Rs. 297.00 Crore.
Balu Forge Q3 2025 Proceeds Monitoring Report
Balu Forge Industries Limited has submitted the required Monitoring Agency Report for the quarter ended December 31, 2025, detailing the utilization of funds raised through a Preferential Issue of equity shares and convertible warrants totaling Rs. 496.80 crore.
Deviation Analysis: Nil Deviation Confirmed
The Monitoring Agency, Infomerics Valuation and Rating Limited, reported the following key findings:
- Deviation from objects: Nil.
- Range of Deviation: Nil.
The utilization of proceeds during the quarter was found to be entirely in line with the objects stipulated in the EOGM resolution, with the Monitoring Agency confirming that no material deviations from the planned expenditures were observed.
Fund Flow and Utilization Summary (Rs. Crore)
The report provides a detailed breakdown of the proceeds:
The total issue size was Rs. 496.80 crore. The total subscription received up to the end of the quarter (including amounts received from equity shares (A) and warrants (B), minus warrants converted (C)) was Rs. 297.00 crore.
The object-wise utilization for the quarter ending December 31, 2025, covered:
- Purchase & installation of new & existing plant & machinery: Amount proposed was Rs. 189.00 Crore. Amount utilized during the quarter was Rs. 139.05 Crore.
- Working capital requirement: Amount proposed was Rs. 183.60 Crore. Amount utilized during the quarter was Rs. 83.70 Crore.
- General corporate purpose: Amount proposed was Rs. 124.20 Crore. Amount utilized during the quarter was Rs. 74.25 Crore.
The total amount utilized as of the quarter end was Rs. 297.00 Crore, matching the total subscriptions received.
General Corporate Purpose Utilization Detail
The utilization under the General Corporate Purpose object focused specifically on corporate liabilities. The report notes that Rs. 27.00 Crore was utilized towards the payment of Income Tax (Self-assessed tax), verified via Bank Statements and CA Certificates.
Implementation Status
Regarding the timeline for object implementation, all three primary objects—Plant/Machinery purchase, Working Capital, and General Corporate Purpose—are currently listed as ‘Ongoing’ with ‘No Delay‘ reported against their stipulated completion period of 12 months from fund receipt.
Other Relevant Disclosures
The Monitoring Agency also noted one significant external event impacting the company:
- There was an Income Tax raid on January 07, 2026, which led to a 27% share price decline. However, the disclosure confirmed that nothing adverse was discovered by the Income Tax department that could impact the company’s operations.
The final balance of Rs. 172.80 Crore remains to be received within 18 months from the date of warrant issuance (September 2024) or upon warrant conversion.
Source: BSE
