Unimech Aerospace and Manufacturing Limited has submitted its Monitoring Agency Report for the quarter ended December 31, 2025, as mandated following its Initial Public Offering (IPO). The report, issued by Care Ratings Limited, confirmed that the utilization of IPO proceeds was reviewed against the original objects. Key findings indicate that while initial objects saw reallocations, shareholders approved changes to include Mergers & Acquisitions (M&A), Greenfield Projects, and Joint Ventures. The total utilized amount stood at ₹153.30 crore out of the total IPO proceeds.
IPO Proceeds Monitoring Update for Q3 FY2025-26
Unimech Aerospace and Manufacturing Limited issued a formal communication on February 12, 2026, enclosing the Monitoring Agency Report covering the utilization of funds raised during its Initial Public Offering (IPO). The report, prepared by Care Ratings Limited, details the progress up to December 31, 2025, concerning the ₹250 crore raised.
Key Findings on Object Utilization
The monitoring report highlighted significant changes in the deployment of funds, which were subsequently approved by the Board and shareholders:
- Deviation in Objects: The report confirms that a new object covering Mergers & Acquisitions (M&A), Greenfield Projects, and Joint Ventures was introduced.
- Shareholder Approval: Approval for these material deviations was obtained via a postal ballot concluding on December 19, 2025.
- Reallocation: An amount of ₹61.287 crore, originally earmarked for expansion, machinery purchase, and borrowing repayment, was reallocated to the newly introduced M&A/Greenfield/JV object.
- Regulatory Note: The Monitoring Agency noted that the aggregate allocation towards General Corporate Purposes (GCP) and the new object exceeded the 35% limit prescribed under applicable regulations. The Board viewed that LODR regulations, not the specified ICDR limit, apply to the listed entity.
Utilization Summary as of December 31, 2025
The total utilization of the ₹250.00 crore IPO proceeds is summarized below:
- Total Utilized Amount: ₹153.30 crore.
- Total Unutilized Amount: ₹96.70 crore.
- Utilized during the Quarter: ₹3.63 crore was utilized during the quarter ended December 31, 2025.
Deployment of Unutilized Proceeds (₹96.70 Crore)
The unutilized proceeds are currently held predominantly in fixed deposits, earning interest:
- Fixed Deposits across ICICI Bank and Axis Bank total ₹95.02 crore.
- The total earning on these investments for the quarter amounted to ₹1.45 crore, yielding returns up to 7.77%.
Status of Original Objects
Several original objects have been fully utilized or reallocated:
| Item Head | Original Cost (₹ Crore) | Revised Cost (₹ Crore) | Utilization Status |
|---|---|---|---|
| Funding capital expenditure (Equipment purchase) | 36.37 | 23.54 | Entire amount utilized. |
| Funding working capital | 25.29 | 25.29 | ₹11.83 crore unutilized; no utilization during the quarter. |
| Investment in Subsidiary (Capital Expenditure) | 43.89 | 35.43 | Entire amount utilized. |
| Repayment/Prepayment of borrowings | 40.00 | 0.00 | Entire amount reallocated to new M&A object. |
| General Corporate Purposes (GCP) | 40.65 | 40.65 | Fully utilized (₹3.49 crore utilized during the quarter). |
| M&A, Joint Ventures, Greenfield Projects | 0.00 | 61.29 | No utilization during the quarter (New Object). |
General Corporate Purpose (GCP) Breakdown
Of the amount allocated to GCP (total ₹3.49 crore utilized), the utilization was primarily for routine operational expenses:
- Administration and statutory dues: ₹1.13 crore
- Employee salary: ₹0.84 crore
- Vendor payments: ₹1.52 crore
The report confirms that the company has made a partial payment of ₹0.14 crore for Issue Expenses through the Monitoring Agency account during the quarter, with invoices for the remaining amount still awaited.
Source: BSE
