Power Mech Projects Limited has provided an update on the utilization of ₹350 crore raised through a Qualified Institutional Placement (QIP). While the company has successfully met its debt repayment and general corporate objectives, the Tasra opencast project faces a delay in coal washery installation. All necessary statutory approvals have now been secured, and the company expects to complete the utilization of remaining funds by Q2 of the 2027 fiscal year.
Financial Progress and Capital Utilization
As of the quarter ended March 31, 2026, Power Mech Projects Limited has made steady progress in deploying funds raised through its QIP. Out of the total issue size of ₹350 crore, the company has utilized ₹286.66 crore. The funds were primarily allocated toward capital expenditure for the Tasra opencast project, loan repayments, and general corporate purposes.
Tasra Opencast Project Status
The primary portion of the funding, amounting to ₹240 crore, was earmarked for the installation and operation of a coal washery and coal handling plant for the Tasra project. As of the current reporting period, ₹183.26 crore has been deployed. The project experienced delays due to the time taken to receive essential government and statutory approvals. With all required clearances now in place as of June 2025, the company has confirmed that the remaining ₹56.74 crore is expected to be fully utilized by Q2 of the 2027 fiscal year.
Debt and General Corporate Deployment
The company has successfully met its obligations regarding debt management and corporate growth. The ₹20 crore allocated for the partial repayment of the loan from the Bank of Bahrain and Kuwait B.S.C. has been fully utilized. Similarly, the ₹83.40 crore designated for general corporate purposes was fully spent by the end of December 2023. Currently, the remaining unutilized capital is held in fixed deposits and a designated monitoring account, ensuring safety and liquidity until the funds are required for the final project phases.
Source: BSE
