Attached herewith the Monitoring Agency Report for the quarter ended June 30, 2025
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Divgi Torqtransfer Systems has submitted the quarterly Monitoring Agency Report prepared by ICRA Limited covering IPO proceeds utilization as of June 30, 2025. The company raised net IPO proceeds of Rs. 168.434 Crore (revised to Rs. 169.662 Crore due to lower issue expenses) in March 2023. Of this, only Rs. 74.19 Crore (about 44%) has been utilized so far — Rs. 55.36 Crore for capital expenditure on manufacturing equipment out of the planned Rs. 150.71 Crore, and Rs. 18.83 Crore for general corporate purposes out of Rs. 18.96 Crore (nearly fully used). The remaining Rs. 113.5 Crore of unutilized proceeds is parked in fixed deposits with SBI and HDFC Bank. ICRA confirmed there is no deviation from the stated objects of the issue, but noted project timelines for capex are delayed by 3-12 months due to supplier lead times and macroeconomic uncertainties.
The report confirms IPO funds are being used as planned with no deviations, which is a neutral-to-positive governance signal. However, the significant delay in deploying capital expenditure proceeds (less than 37% utilized in over two years since the IPO) and the 3-12 month timeline slippage may concern investors expecting faster capacity buildout, though the idle funds are earning interest via fixed deposits.