Patel Engineering Limited has officially confirmed that there has been no deviation or variation in the utilization of proceeds from its recent Rights Issue. This declaration pertains to the quarter ended June 30, 2026. The company stated that the funds were used strictly as per the objects outlined in the Letter of Offer dated November 28, 2025. A detailed statement confirming this nil deviation, reviewed by the Audit Committee, is attached as Annexure A.
Confirmation of Fund Utilization
Patel Engineering Limited has submitted a statement confirming that there was no deviation or variation in the utilization of funds raised through its Rights Issue. This confirmation covers the financial quarter that concluded on June 30, 2026.
Adherence to Original Objectives
The company has affirmed its compliance with the stated objectives for the fund utilization, as detailed in the Letter of Offer issued on November 28, 2025. The funds raised were allocated across repayment of borrowings, general corporate purposes, and issue expenses, with no discrepancies noted from the plan.
Audit Committee Review
A formal ‘Statement of Deviation’ was prepared, explicitly confirming nil deviation. This statement has undergone a thorough review by the company’s Audit Committee, ensuring transparency and adherence to financial regulations. The attached Annexure A provides the detailed review findings.
Key Financial Details (Q2 2026)
The total amount raised in the Rights Issue was ₹3,989.68 million. For the quarter ended June 30, 2026:
- Repayment/Pre-payment of Borrowings: Utilized ₹2,540.00 million.
- General Corporate Purposes: Utilized ₹971.23 million. Notably, ₹21.55 million was transferred from the escrow account for this purpose.
- Issue Expenses: Utilized ₹478.45 million. The excess issue expense of ₹21.55 million was adjusted against general corporate purposes.
The total utilized funds amount to ₹3,989.68 million, matching the total raised amount, further underscoring the absence of significant deviation.
Source: BSE
