Patel Engineering Ltd. has submitted the Monitoring Agency Report for its Rights Issue, covering the quarter ended December 31, 2025. The company confirms NIL deviation in the utilization of issue proceeds from the stated objects outlined in the Offer Document dated November 28, 2025. The total issue size amounted to Rs. 398.97 crore, with net proceeds of Rs. 348.97 crores. As of the quarter end, the primary activity involved the repayment of term loans.
Rights Issue Utilization Confirmation
Patel Engineering Ltd. has formally submitted the Monitoring Agency Report, issued by Care Ratings Limited, concerning the utilization of proceeds from its recent Rights Issue. This report covers the period ending December 31, 2025. The management confirms that there has been no deviation in the deployment of the Issue proceeds relative to the intended objectives specified in the Offer Document dated November 28, 2025.
Issue Details and Proceeds
The aggregate amount raised through the Rights Issue was Rs. 398.97 crore. The net proceeds available for deployment after accounting for issue expenses of Rs. 50 crores totaled Rs. 348.97 crores. The Issue Period was recorded between December 12, 2025, and December 19, 2025.
Monitoring of Objects (as of Q3 FY26)
The monitoring process confirmed that all utilization was compliant with disclosures. For the quarter ended December 31, 2025, funds utilized totaled Rs. 46.67 crore, leaving a total unutilized amount of Rs. 352.29 crore.
1. Repayment of Borrowings
The object related to the repayment/pre-payment of outstanding borrowings was proposed at Rs. 254.00 crore. During the quarter, Rs. 46.67 crore was utilized for the repayment of term loans (principal and interest). The Monitoring Agency noted that the allotment for the Rights Issue took place on December 22, 2025, leaving insufficient time in the December quarter to utilize the remaining balance. The unutilized portion (Rs. 207.32 crore) is planned to be utilized in the March quarter of 2026.
2. General Corporate Purposes and Issue Expenses
The allocations for General Corporate Purposes (Rs. 94.97 crore) and Issue Expenses (Rs. 50.00 crore) showed no utilization during the quarter. Consequently, the full proposed amounts remain unutilized in these categories. The Board of Directors anticipates utilizing these remaining balances in the March quarter of 2026, aligning with the objects of the Rights Issue.
Deployment of Unutilized Proceeds
The total unutilized proceeds of Rs. 352.29 crore were deployed primarily in liquid funds and fixed deposits as of December 31, 2025. Key deployments included:
- Liquid Funds: Multiple liquid fund placements totaled Rs. 105.00 crore, yielding annual returns ranging from 11.18% to 12.14%.
- Fixed Deposits: Three fixed deposits, totaling Rs. 30.00 crore, were placed with maturities in January 2026, earning a consistent rate of 3.50%.
- Balances: Significant balances were held in the Monitoring Account (Rs. 152.29 crore) and the Allotment Account for Issue Expenses (Rs. 50 crore).
Implementation Timeline Status
Both major objects—repayment of borrowings and general corporate purposes—are currently listed as ‘Ongoing’ with a proposed completion date of March 31, 2027. The Monitoring Agency reported ‘No delay’ in implementation for both categories during this reporting quarter.
Source: BSE
