Patel Engineering Limited filed its statement of deviation or variation with BSE and NSE under Regulation 32 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, confirming no deviation in the utilization of rights issue proceeds during the quarter ended December 31, 2025.

Rights Issue Details and Compliance Status

The company confirmed that there has been no deviation or variation in the utilization of proceeds from the objects stated in the Letter of Offer dated November 28, 2025. The statement was duly reviewed by the Audit Committee and Board of Directors, with Care Ratings Limited serving as the monitoring agency.

Fund Utilization During Q3 FY26

During the quarter ended December 31, 2025, Patel Engineering utilized Rs 466.76 million from the rights issue proceeds specifically for repayment and pre-payment of outstanding borrowings including interest. No funds were utilized for general corporate purposes or issue expenses during this period.

Regulatory Compliance and Audit Committee Review

The Audit Committee reviewed the utilization and confirmed "No Deviation" in their comments. The company secretary Shobha Shetty (Membership No.: F10047) signed the compliance statement, confirming adherence to all regulatory requirements and original fund utilization objects as disclosed in the offer document.

Future Deployment Plans

The statement indicates that the remaining unutilized portion of the rights issue proceeds will continue to be deployed according to the stated objects. The limited utilization during Q3 FY26 aligns with the rights issue allotment occurring on December 22, 2025, providing limited time in the December quarter for full deployment of funds.

Ace investor Vijay Kedia, renowned for identifying multibagger smallcap stocks early, has acquired a 1.01% stake in Patel Engineering through his firm Kedia Securities Private Limited. The strategic investment comes despite the infrastructure stock declining over 40% in the past year, demonstrating Kedia's contrarian investment approach.

Investment Details

Kedia's acquisition represents a significant vote of confidence in the infrastructure company's long-term prospects. The investment adds institutional backing to the small-cap stock, which currently trades with a market capitalization of ₹2,908.03 crores.

Recent Project Wins

Patel Engineering has secured significant project contracts recently, strengthening its order book. The company signed a memorandum of understanding with the Government of Arunachal Pradesh for the restoration and development of the 144 MW Gongri Hydropower Project in West Kameng district.

Coal Projects Portfolio

The company also secured two Letters of Intent for coal excavation and transportation projects from Saidax Engineers and Infrastructure Private Limited. These projects involve excavation and associated works at the Jhiria West Open Cast Project in the Hasdeo Area of Bilaspur, Chhattisgarh, awarded by South Eastern Coalfields Limited.

Kedia Portfolio Performance

Amid heightened market volatility, Vijay Kedia's 16-stock portfolio value declined to approximately ₹1,170 crores, marking a nearly 38% decline from ₹1,896 crores in December. Only three stocks in his portfolio delivered positive double-digit returns, while six stocks recorded steep declines ranging between 25% and 68%. However, his holding in TechD Cybersecurity doubled during the year, turning into a multibagger.

Business Operations

Patel Engineering operates in the infrastructure and construction space with expertise in large-scale civil projects including dams, tunnels, hydroelectric plants, highways, bridges, railways, and real estate development. The company's recent project acquisitions worth ₹2,498.19 crores demonstrate its continued ability to secure significant infrastructure contracts despite market challenges.