Mehai Technology Limited has fully utilized the proceeds aggregating to ₹74.11 crore raised through its Rights Issue by the quarter ended March 31, 2026. The Monitoring Agency, CARE Ratings Limited, reported that the entire amount was deployed across various objects including repayment of borrowings, working capital, and general corporate purposes. However, the agency noted an inability to independently verify specific expenditures due to the absence of requisite information and certificates from the company.

Utilization of Proceeds

The Rights Issue, which opened on September 26, 2025, and closed on October 17, 2025, was comprised of 37,05,30,000 equity shares with a face value of ₹1 each, issued at a price of ₹2 per share. The funds were allocated towards five primary objects as per the offer document. According to the management certificate and monitoring account statement, the entire gross proceeds have been utilized till the end of Q4FY26.

The deployment of funds included ₹33 crore for the repayment or pre-payment of certain borrowings availed by the company. Additionally, ₹14.75 crore was allocated for funding the working capital requirements of the company. A sum of ₹9.11 crore was designated for lending fresh loans to the company's subsidiary, Mehai Aqua Private Limited, to facilitate the repayment of secured loans from UCO Bank. Furthermore, ₹16.50 crore was utilized for general corporate purposes, and ₹0.75 crore was used for issue expenses.

Monitoring Agency Observations

CARE Ratings Limited, in its report dated May 15, 2026, highlighted that it could not comment on the deviation in the utilization of right issue proceeds from its objects due to the absence of a CA certificate, details of supporting documents for issue-related expenditure, and clarifications from the company. The agency stated that the report was prepared on a best-efforts basis given the lack of complete solicited information post 40 days of the end of the quarter.

The agency noted that despite repeated follow-ups via emails and phone calls, Mehai Technology did not provide the requisite information to the satisfaction of the Monitoring Agency or in a timely manner. Consequently, the agency was unable to independently verify the utilization towards issue-related expenses and general corporate purposes during the quarter.

Financial and Operational Details

The report also flagged certain market and corporate governance events. The current share price of the company stood at ₹1.41 as on May 13, 2026, which remained significantly lower compared to the listing price of ₹6.22 on October 24, 2025. Additionally, the agency noted that the company had changed its registered office for the fourth time in the last seven years and the second time in the last two years, along with a change in the object clause of its Memorandum of Association.

The Monitoring Agency confirmed that there were no funds remaining unutilized at the end of the quarter. The company has stated that the implementation of objects was completed within FY26 as per the offer document timelines.

Mehai Technology Limited has informed the exchanges that its board of directors will meet on Thursday, May 28, 2026. The meeting is scheduled to be held at the corporate office situated at 144, Dakshindari Road Sreebhumi North 24 Parganas, Patipukur, West Bengal.

The primary agenda of the meeting is to consider and approve the audited financial results of the company. This includes the standalone and consolidated financial results for the quarter and year ended March 31, 2026. The approval will also encompass the audit report presented by the statutory auditor of the company, in accordance with Regulation 33 of the listing regulations.

Agenda for the Meeting

The board will deliberate on the following key matters:

• Consideration and approval of audited financial results (standalone & consolidated) for the quarter and year ended March 31, 2026.
• Review of the Audit Report by the Statutory Auditor.
• Any other matter with the permission of the Chair.

The intimation was submitted to BSE Limited under Regulation 29 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The notice was signed by Jugal Kishore Bhagat, Managing Director of the company.