News Corporate Actions Airfloa Rail Technology Limited Reports IPO Proceeds Utilization for Q3 FY26Airfloa Rail Technology Limited Reports IPO Proceeds Utilization for Q3 FY26
Airfloa Rail Technology Limited reported IPO proceeds utilization for Q3 FY26, with Rs. 7,631.39 lakhs deployed out of Rs. 8,884.80 lakhs net proceeds from its September 2025 IPO. The company has fully utilized funds for loan repayment, working capital, and general corporate purposes, with Rs. 1,253.41 lakhs remaining unutilized in the capex category. Statutory auditors certified compliance with offer document requirements, confirming no material deviations in fund deployment.
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Airfloa Rail Technology Limited convened a board meeting on February 14, 2026, to review and approve the utilization of Initial Public Offer (IPO) proceeds for the quarter ended December 31, 2025. The meeting, held pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, addressed the company's compliance with IPO fund deployment requirements.
IPO Details and Fund Mobilization
The company successfully completed its public issue from September 11, 2025, to September 15, 2025, raising Rs. 9,109.80 lakhs. The IPO was conducted by Airfloa Rail Technology Limited, formerly known as Airflow Equipments India Pvt Ltd, a manufacturer of railway products. The net proceeds from the issue amounted to Rs. 8,884.80 lakhs after accounting for issue expenses.
Fund Utilization Progress
The company demonstrated significant progress in deploying IPO proceeds across its stated objectives during the quarter:
| Objective | Proposed Amount (Rs. Lakhs) | Beginning of Quarter | During Quarter | End of Quarter | Unutilized Amount |
|---|---|---|---|---|---|
| Repayment of loan | 600.00 | 600.00 | 0.00 | 600.00 | 0.00 |
| Working Capital | 5,927.02 | 3,971.31 | 1,955.71 | 5,927.02 | 0.00 |
| Capex | 1,367.78 | 36.10 | 78.27 | 114.37 | 1,253.41 |
| General Corporate Funds | 990.00 | 0.00 | 990.00 | 990.00 | 0.00 |
| Total | 8,884.80 | 4,607.41 | 3,023.98 | 7,631.39 | 1,253.41 |
As of December 31, 2025, the company has utilized Rs. 7,631.39 lakhs out of the total net proceeds, representing approximately 86% deployment. The primary area with remaining funds is capex, where Rs. 1,253.41 lakhs remains unutilized.
Fund Management and Deployment
The company maintains a structured approach to fund management through monitoring agency arrangements. Rs. 8,732.21 lakhs was transferred from the Public Issue Account to the Monitoring Agency Account, while Rs. 152.59 lakhs remains in the Public Issue Account. During the quarter, Rs. 285.17 lakhs was transferred from the monitoring agency to the company's current account and was fully utilized toward the stated objectives.
| Instrument Type | Amount (Rs. Lakhs) | Maturity Date | Earnings | Return Rate |
|---|---|---|---|---|
| Monitoring Agency Account | 100.82 | NA | NIL | NA |
| Public Issue Account | 152.59 | NA | NIL | NA |
| Fixed Deposit - Axis Bank (382542) | 350.00 | 05/01/2026 | 2.50 | 3.75% |
| Fixed Deposit - Axis Bank (413413) | 350.00 | 05/01/2026 | 2.50 | 3.75% |
| Fixed Deposit - Axis Bank (413578) | 300.00 | 05/01/2026 | 2.14 | 3.75% |
| Total | 1,253.41 | 7.14 |
General Corporate Purpose Utilization
The company deployed Rs. 990.00 lakhs allocated for General Corporate Purposes as follows:
- Capex: Rs. 200.00 lakhs for advance payment toward land purchase
- Working Capital: Rs. 790.00 lakhs for material purchases under working capital requirements
Regulatory Compliance and Auditor Certification
Varadarajan & Co, Chartered Accountants, the company's statutory auditors, certified that the utilization of net proceeds during the quarter ended December 31, 2025, is in agreement with the unaudited books of account and in accordance with the purposes mentioned in the IPO prospectus. The auditors confirmed no material deviations from the stated objectives and found all utilization to be as per offer document disclosures.
The company reported no delays in implementation of objectives during the quarter and confirmed that no cost revisions were made to the original project estimates. The monitoring agency report for the quarter ended December 31, 2025, was also approved as per Regulation 262 of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018.
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