Divgi TorqTransfer Systems Limited has submitted its Monitoring Agency Report to BSE Limited and the National Stock Exchange of India Limited for the quarter ended March 31, 2026, pursuant to Regulation 41(4) of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 and Regulation 32(6) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The report was prepared by ICRA Limited, the designated monitoring agency, and filed by Company Secretary and Compliance Officer Aniket Kokane on May 13, 2026.

IPO Issue Overview

The company's Initial Public Offer opened on March 01, 2023, and closed on March 03, 2023, covering equity shares of the auto components and equipment sector issuer. The key issue parameters are summarised below:

The revised net proceeds of INR 169.662 Crore reflect lower-than-estimated issue-related expenses, resulting in an upward revision of INR 1.228 Crore to the General Corporate Purpose allocation.

No Material Deviation Confirmed

ICRA Limited confirmed that there is no material deviation in the utilization of the IPO proceeds relative to the objects disclosed in the offer document. The monitoring agency noted that all utilization is in line with the disclosures in the offer document, the means of finance for the disclosed objects have not changed, and no major deviation was observed compared to earlier monitoring agency reports. No government or statutory approvals were pending, and no favorable or unfavorable events materially affecting the viability of the objects were reported.

Progress in Utilization of IPO Proceeds

The following table details the progress in utilization of IPO proceeds as at the quarter ended March 31, 2026:

ICRA noted that the company took reimbursement of INR 2.900 Crore for capital expenditure incurred earlier from its internal accruals. The General Corporate Purpose revision reflects the actual offer-related expenditure being lower than estimated by INR 1.228 Crore.

Deployment of Unutilized Proceeds

The unutilized IPO proceeds have been deployed in fixed deposits with SBI Bank and HDFC Bank, as certified by A.R Sulakhe & Company, Chartered Accountant. The details of these deployments as at March 31, 2026 are as follows:

The additional unutilized amount of INR 20.856 Crore pertains to interest income, net of withdrawals.

Implementation Timeline and General Corporate Purpose Utilization

For the capital expenditure object, project timelines have been impacted by supplier lead times driven by the complexity of advanced equipment and machinery configurations, as well as extended negotiation cycles amid macroeconomic uncertainties, resulting in a delay of 24 months depending on actual usage. Out of the INR 114.587 Crore planned for FY25, the company spent INR 41.845 Crore, with the balance to be spent in FY27.

For General Corporate Purposes, out of INR 18.955 Crore, the company has spent INR 18.954 Crore, with the remaining balance of INR 0.001 Crore to be spent in FY27. The most recent utilization under this head during Q4FY26 comprised a purchase of a multi-gauging unit for export components amounting to INR 0.120 Crore, bringing the cumulative General Corporate Purpose spend to INR 18.954 Crore (Grand Total A+B+C).

Divgi TorqTransfer Systems Limited has submitted its mandatory regulatory disclosure to stock exchanges, confirming that the company does not meet the criteria for classification as a Large Corporate Entity for the financial year 2026-27.

Regulatory Compliance Disclosure

The company filed the initial disclosure with both BSE Limited and National Stock Exchange of India Limited on April 17, 2026. This submission fulfills the regulatory requirement under SEBI Circular SEBI/HO/DDHS/CIR/P/2018/144 dated November 26, 2018, which mandates companies to declare their Large Corporate Entity status at the beginning of each financial year.

Large Corporate Entity Classification

Divgi TorqTransfer Systems Limited specifically stated that it does not fall under the Large Corporate Entity criteria as outlined in paragraph 2.2 of the referenced SEBI circular. The Large Corporate Entity framework was introduced by SEBI to enhance corporate governance standards and impose additional compliance requirements on larger companies based on specific financial and operational thresholds.

Corporate Information and Authorization

The disclosure was digitally signed by Aniket Kokane, Company Secretary and Compliance Officer, bearing membership number A51571. The company, incorporated under CIN L32201MH1964PLC013085, is headquartered at 75, General Block, MIDC, Bhosari, Pune 411 026.

This regulatory filing ensures transparency and compliance with SEBI's disclosure requirements, providing clarity to investors and stakeholders regarding the company's regulatory classification for the current financial year.