Company Update on Monitoring Agency Report for the Quarter Ended 30.06.2025
UNIMECH · price
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CARE Ratings, the Monitoring Agency for Unimech Aerospace's Rs. 250 crore IPO (Dec 2024), has submitted its report on the use of proceeds for Q1 FY26. Out of the Rs. 250 crore raised, Rs. 129.35 crore has been utilized so far, with Rs. 50.94 crore deployed during the quarter, leaving Rs. 120.65 crore unutilized. The company has deviated from its offer document by investing part of the IPO working capital proceeds (Rs. 11.09 crore) in Axis Money Market Fund instead of a scheduled commercial bank as stipulated in the RHP. A Rs. 1.61 crore refund was received from Makino Asia Pte Ltd for machinery blocked due to missing Japan export approvals, and the company is seeking alternative suppliers. The Rs. 40 crore earmarked for repayment/prepayment of borrowings remains unutilized with discussions ongoing with banks, causing a delay.
Investors should note multiple deviations from the stated IPO plan: parking of working capital funds in liquid mutual funds instead of a scheduled bank, a setback in procuring imported machinery, and ongoing delays in debt repayment and working capital deployment (now pushed to March 2027). These may raise governance concerns and could weigh on the stock, though the company attributes deviations to operational reasons and states corrective action is underway.