Mittal Sections Limited has submitted its monitoring agency report for the quarter ended December 31, 2025, revealing a minor deviation in the utilization of funds raised through its SME Initial Public Offer. CARE Ratings Limited, serving as the monitoring agency, identified a deviation of less than 10% from the objects disclosed in the offer document.

IPO Details and Fund Deployment

The company successfully raised ₹52.91 crore through its SME IPO conducted from October 07-09, 2025. During Q3FY26, the company utilized ₹37.16 crore across various stated objectives, leaving ₹15.75 crore unutilized as of December 31, 2025.

Fund Utilization Breakdown

The monitoring agency report provides detailed insights into how the IPO proceeds were deployed across different objectives during the quarter.

Identified Deviation and Concerns

CARE Ratings identified an excess utilization of ₹0.29 crore towards working capital requirements, creating a negative balance in this category. The deviation arose due to differences in interpretation between the monitoring agency and company management regarding fund utilization tracking in the cash credit account.

The monitoring agency noted several concerns:

• Comingling of funds in the cash credit account with numerous debits and credits
• Reliance on company declarations and CA certificates for fund utilization verification
• Timing differences in cheque clearances affecting quarter-end reporting

Deployment of Unutilized Proceeds

The company has deployed the unutilized proceeds of ₹15.75 crore primarily in fixed deposits with City Union Bank Limited. These deposits carry interest rates ranging from 5.25% to 6.75% with varying maturity dates from January 2026 to October 2026. Additionally, ₹0.25 crore remains as closing balance in the escrow account.

Capital Expenditure Progress

During Q3FY26, the company utilized ₹4.78 crore towards capital expenditure, comprising ₹1.78 crore for machinery purchases and ₹3.00 crore for land acquisition. The company issued cheques worth ₹0.55 crore to vendors on December 29 and 31, 2025, which were cleared in January 2026, creating timing differences in the quarterly reporting.

Market Performance and Outlook

The monitoring agency report highlighted that the company's share price has declined by approximately 75% from its listing price as of February 11, 2026. The company's management attributed this decline to general market conditions and investor sentiment, factors beyond their control.

The report confirms that all objects remain on track for completion within FY26 as per the original timeline disclosed in the offer document. The monitoring agency will continue to track the utilization of remaining proceeds in subsequent quarters.

Mittal Sections Limited has officially completed its Company Secretary transition and filed additional regulatory intimation with BSE Limited regarding the authorization of Key Managerial Personnel. Following the earlier appointment of Ms. Gunjan Rameena as Company Secretary & Compliance Officer effective January 1, 2026, the company has now authorized her as part of the Disclosure Committee under SEBI regulations.

Official Filing and Regulatory Compliance

The company submitted its official intimation to BSE Limited under Company Code No. 544575 on December 31, 2025, ensuring full compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. A subsequent filing on January 8, 2026, authorized the new Company Secretary as part of the Disclosure Committee under Regulation 30(5) of the Listing Regulations.

Leadership Transition Details

The Board of Directors, during their meeting held on December 31, 2025, formally acknowledged the resignation of Mr. Hirenkumar B. Patel from his position as Company Secretary & Compliance Officer. His resignation took effect from December 31, 2025, as he pursued better growth opportunities for personal and professional advancement.

New Appointment and Disclosure Committee Authorization

The Board of Directors, acting on the recommendation of the Nomination and Remuneration Committee, approved the appointment of Ms. Gunjan Rameena as the new Company Secretary & Compliance Officer. Ms. Rameena is an associate member of the Institute of Company Secretaries of India (ICSI) and brings substantial experience in Corporate Law, Corporate Governance, and SEBI-related matters.

Following her appointment, Ms. Rameena has been authorized as Key Managerial Personnel forming part of the Disclosure Committee to determine the materiality of events or information and for disclosure to stock exchanges in accordance with the Board approved policy.

Board Meeting and Documentation

The Board Meeting that approved these changes commenced at 3:00 p.m. and concluded at 3:25 p.m. on December 31, 2025. The official documentation was digitally signed and authenticated by Ajaykumar B. Mittal, Chairperson & Managing Director (DIN: 01760444), demonstrating the company's commitment to digital governance practices.

The transition ensures seamless continuity in the company's compliance operations while maintaining strong governance standards. The appointment and subsequent authorization as part of the Disclosure Committee ensures proper regulatory oversight and timely disclosure of material information to stakeholders.