We have enclosed herewith the Monitoring Agency Report issued by the CARE Ratings Limited, monitoring Agency, appointed by the Company for monitoring the utilization of funds raised through ....
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CARE Ratings Limited, the monitoring agency for Mittal Sections Limited's SME IPO of Rs. 52.91 crore (October 2025), has submitted its Q4 FY26 report. The company has utilized Rs. 50.41 crore (95.3%) of IPO proceeds as of March 31, 2026, with Rs. 2.50 crore remaining unutilized and parked in fixed deposits with City Union Bank. Capital expenditure towards land acquisition, factory construction, and plant & machinery (Rs. 20.82 crore allocated) has been delayed beyond the February 2026 target date due to delays in machinery supply and installation. Working capital utilization slightly exceeded the Rs. 15 crore allocation by Rs. 0.29 crore, with Rs. 0.09 crore subsequently reimbursed from internal accruals. The monitoring agency noted minor fund comingling in the CC account but confirmed no material deviation (less than 10% threshold). As of May 6, 2026, the share price has declined approximately 76% from the IPO price of Rs. 143 per share.
The capital expenditure delay and significant share price decline of 76% from IPO price are concerning for investors. However, the utilization is largely on track with no material deviation, and the unutilized funds are properly parked in FDs. The company remains committed to completing the project in the next financial year as per the prospectus.