Patel Chem Specialities Limited has submitted its monitoring agency report for the quarter ended December 31, 2025, regarding the utilization of IPO proceeds under Regulation 32(6) of SEBI regulations. The report was prepared by Infomerics Valuation and Rating Limited, the appointed monitoring agency.

IPO Details and Proceeds Structure

The company completed its initial public offering during July 25-29, 2025, raising Rs. 58.80 crore through the issuance of 70,00,000 equity shares at Rs. 84 per share. After deducting issue-related expenses of Rs. 7.25 crore, the net proceeds available for utilization towards stated objects amounted to Rs. 51.55 crore.

Fund Utilization Progress

During Q3FY26, the company utilized Rs. 6.29 crore towards its stated objects. The cumulative utilization since the IPO stands at Rs. 22.55 crore, leaving Rs. 36.25 crore unutilized at the end of the quarter.

Capital Expenditure Project Details

The primary object involves establishing a new manufacturing facility at Indrad, Mahesana, for producing specialty chemicals including Croscarmellose Sodium (CCS), Sodium Starch Glycolate (SSG), and Calcium Carboxymethylcellulose (CMC). The company has entered into a turnkey agreement with J & H Pharma Consultants for Rs. 45.00 crore (excluding taxes) for the complete project implementation.

The new facility is expected to add 6,012 MTPA capacity to the existing combined capacity of 3,720 MTPA from Vatva and Talod facilities, bringing total capacity to 9,732 MTPA. The project is targeted for commercialization by March 2026.

General Corporate Purposes Utilization

The company has fully utilized the allocated Rs. 8.40 crore for general corporate purposes during Q2FY26 and Q3FY26. The utilization breakdown for Q3FY26 includes:

• Salary: Rs. 1.26 crore
• TDS and PF: Rs. 0.69 crore
• Electricity: Rs. 0.65 crore
• Others (machinery, lab instruments, office expenses): Rs. 0.94 crore

Deployment of Unutilized Funds

The remaining Rs. 36.25 crore is deployed as follows:

Monitoring Agency Assessment

Infomerics Valuation and Rating Limited reported no deviations from the objects stated in the offer document. The monitoring agency confirmed that all utilization was as per disclosure requirements and no material deviations were observed. The statutory auditor, M/s Parikh Shah & Associates, verified the utilization details and confirmed no deviation or variation in the use of raised funds.

The company maintains compliance with SEBI regulations regarding IPO proceeds utilization, with proper documentation and approvals in place for all expenditures.

Patel Chem Specialities Limited , a manufacturer of cellulose and starch-based pharmaceutical excipients, has reported robust financial performance for the first half of fiscal year 2026. The company's revenue and profit figures show significant growth compared to the same period in the previous year.

Financial Highlights

Patel Chem Specialities' revenue increased by 22% year-over-year, reaching ₹61.16 crore in the first half of FY2026. This growth demonstrates the company's strong market position and increasing demand for its products.

Notably, the company's Profit After Tax (PAT) also saw a significant rise, growing by 17% to reach ₹6.13 crore. This growth in both revenue and profit suggests that Patel Chem Specialities has maintained its operational efficiency while expanding its business.

Expansion and Export Performance

Patel Chem Specialities is actively expanding its production capacity to meet growing demand. Key developments include:

• The upcoming Indrad facility, which will add 6,012 MTPA to the company's production capacity.
• The Vatva expansion, which is expected to begin commercial production by December 2025.

The company continues to maintain a strong export presence, with shipments to over 15 countries. Importantly, Patel Chem Specialities reports 100% repeat orders across its major product lines, indicating high customer satisfaction and product quality.

The robust financial performance and ongoing expansion efforts of Patel Chem Specialities in the first half of FY2026 are noteworthy for investors and market watchers, particularly those focused on the pharmaceutical excipients and specialty chemicals sectors.