MethodHub Software Limited Reports First IPO Proceeds Monitoring for Q3FY26
MethodHub Software Limited released its first IPO proceeds monitoring report for Q3FY26, showing utilization of ₹14.20 crore from total proceeds of ₹102.49 crore. The company deployed funds for loan repayment (₹1.39 crore), working capital augmentation (₹4.58 crore), and issue expenses (₹8.23 crore). Remaining funds of ₹73.30 crore are held in bank accounts and fixed deposits earning 6.25% returns. Brickwork Ratings confirmed no deviations from offer document objectives.
*this image is generated using AI for illustrative purposes only.
MethodHub Software Limited has published its first monitoring agency report for the quarter ended December 31, 2025, detailing the utilization of proceeds from its initial public offering (IPO). The report, prepared by Brickwork Ratings under Regulation 262 of SEBI ICDR Regulations, provides comprehensive insights into how the company has deployed the funds raised through its public issue.
IPO Details and Fund Mobilization
The company successfully raised ₹102.49 crore through a combination of fresh issue and offer for sale of equity shares. The issue period ran from December 4, 2025 for anchor investors to December 9, 2025 for other investors.
| Component | Number of Shares | Price per Share (₹) | Value (₹ Crore) |
|---|---|---|---|
| Fresh Issue | 45,10,200 | 194 | 87.50 |
| Offer for Sale | 7,72,800 | 194 | 14.99 |
| Total | 52,83,000 | 194 | 102.49 |
The company operates in the Information Technology (IT) Services sector and is promoted by Mr. Ahobilam Nagasundaram and Mr. Jayakumar Ammasaikutty.
Fund Utilization Progress
During Q3FY26, MethodHub Software utilized ₹14.20 crore from the total IPO proceeds across multiple stated objectives. The deployment demonstrates the company's systematic approach to implementing its growth strategy as outlined in the offer document.
| Objective | Proposed Amount (₹ Crore) | Utilized in Q3FY26 (₹ Crore) | Unutilized Amount (₹ Crore) |
|---|---|---|---|
| Loan Repayment | 13.60 | 1.39 | 12.21 |
| Working Capital Augmentation | 25.00 | 4.58 | 20.42 |
| US Subsidiary Investment | 4.00 | 0.00 | 4.00 |
| Inorganic Acquisitions and GCP | 30.59 | 0.00 | 30.59 |
| Issue Expenses | 14.31 | 8.23 | 6.08 |
Deployment of Unutilized Proceeds
The company has strategically deployed its unutilized funds across various financial instruments to optimize returns while maintaining liquidity. The total deployment amounts to ₹73.30 crore across bank accounts and fixed deposits.
The funds are primarily held in:
- Axis Bank Monitoring Account: ₹32.71 crore
- HDFC Current Account: ₹15.57 crore
- Multiple Fixed Deposits: ₹25.00 crore earning 6.25% annual returns
The fixed deposits have maturity dates ranging from December 2026 to January 2027, providing the company with flexibility for future fund deployment while earning consistent returns.
Compliance and Monitoring Framework
Brickwork Ratings, serving as the monitoring agency, confirmed that all fund utilization aligns with the disclosures made in the offer document. The report indicates no deviations from the stated objectives and confirms that all necessary government and statutory approvals related to the objects have been obtained.
| Compliance Parameter | Status | Comments |
|---|---|---|
| Utilization as per Offer Document | Yes | No deviations observed |
| Shareholder Approval for Deviations | Not Applicable | No material deviations |
| Government/Statutory Approvals | Yes | All approvals obtained |
| Unfavorable Events | No | No adverse developments |
Implementation Timeline
The company remains on track with its implementation timeline for various objectives. Most initiatives are progressing as planned with completion targets extending up to Financial Year 2026-27 for working capital augmentation and Financial Year 2025-26 for other major objectives including loan repayment and US subsidiary investment.
The monitoring agency report reflects MethodHub Software's disciplined approach to fund deployment and adherence to regulatory requirements, providing transparency to investors regarding the utilization of IPO proceeds during the initial quarter post-listing.
20
