Power Mech Projects Limited has submitted its Monitoring Agency Report for the quarter ended June 30, 2026. The report, issued by CARE Ratings, confirms that the utilization of funds raised through the Qualified Institutional Placement (QIP) is largely in line with the offer document’s disclosures. While most objectives are met, there was a minor delay of 39 days in the utilization of funds for the Tasra opencast project’s coal washery installation.
Monitoring Agency Report for QIP Proceeds
Power Mech Projects Limited has filed its Monitoring Agency Report for the quarter that concluded on June 30, 2026. This report, prepared by CARE Ratings Limited, addresses the utilization of proceeds from the company’s Qualified Institutional Placement (QIP) issue.
Utilization Aligns with Offer Document
The report indicates that the utilization of the issue proceeds is generally in line with the disclosures made in the offer document. The company has confirmed that all required government and statutory approvals for the installation and operation of the washery and coal handling plant for the Tasra opencast project have been received, with the final approvals expected by June 2025.
Progress on Infrastructure Projects
Specifically, for the funding of capital expenditure for the installation and operation of the washery and coal handling plant, the company has utilized the entire proposed amount. The offer document allocated ₹240.00 crore for this objective, with ₹183.26 crore spent by the beginning of the quarter and an additional ₹56.74 crore utilized during the quarter, bringing the total utilization to ₹240.00 crore by the end of the quarter.
Minor Delay in Implementation
However, there has been a delay of approximately 39 days in the overall utilization of funds for the Tasra opencast project. This delay is attributed to the time taken to receive the necessary approvals. The actual completion timeline for the funds allocated to the Tasra project was impacted, with ₹161.32 crore earmarked for FY26 and ₹56.74 crore for Q1FY27, with the actual expenditure reported as of May 08, 3036.
Other Object Utilization
The report also covers the repayment of a loan from Bank of Bahrain and Kuwait B.S.C., which was fully utilized as per the offer document. Similarly, the General Corporate Purposes (GCP) fund, amounting to ₹83.40 crore, was fully spent by December 31, 2023, within the stipulated timelines.
Financial Interest Earned
The company earned interest income of ₹38.50 crore on fixed deposits. A portion of this interest, amounting to ₹11.57 crore, was additionally utilized for the Tasra Project. The remaining ₹26.93 crore is parked in fixed deposits and the Monitoring Account.
Source: BSE
