Monitoring Agency Report for the quarter ended June 30, 2025
HARSHA · price
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Awaiting price reaction for this filing.
CARE Ratings, as Monitoring Agency, has filed its report on Harsha Engineers' utilization of IPO proceeds (Rs. 455 crore raised in September 2022, net Rs. 429.40 crore after expenses). Of the four stated objects, three are fully utilized: borrowing repayment (Rs. 270 crore), infrastructure renovation (Rs. 7.12 crore, completed in September 2024 with 18 months delay), and general corporate purpose (Rs. 74.33 crore, fully used by March 2023). For machinery capex of Rs. 77.95 crore, Rs. 73.51 crore has been deployed with Rs. 4.44 crore still pending, parked in fixed deposits aggregating Rs. 22.53 crore. The Board extended the capex deployment period to FY26 in February 2024. There is no deviation from objects, and no major deviation from the prior monitoring report. Separately, the report footnotes flag concerning items: a Rs. 19.99 crore write-off in Q4FY25 on disputed receivables from the solar-EPC and O&M segments, and a Rs. 95 crore impairment of investment in the Romania subsidiary (Harsha Engineers Europe SRL).
Routine regulatory filing confirming on-track use of IPO funds with no deviation from stated objects, so no immediate negative impact on the stock. However, the Rs. 19.99 crore write-off in solar-EPC/O&M and Rs. 95 crore Romania subsidiary impairment are quality-of-earnings red flags investors should weigh, even though they are not tied to IPO proceeds.