Munish Forge Limited has filed its First Monitoring Agency Report with the National Stock Exchange of India Limited for the period ended March 31, 2026. The report was prepared by Brickwork Ratings India Private Limited (BWR) pursuant to Regulation 262 of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, and the Monitoring Agency Engagement Letter dated September 16, 2025. The submission was made on May 15, 2026, by Yogita Dhall, Company Secretary & Compliance Officer.

IPO Issue Details

The company raised funds through a Fresh Issue and Offer for Sale of equity shares, with the total issue size aggregating to ₹73.92 crore. The issue was open for anchor investors on September 29, 2025, and for other investors from September 30, 2025 to October 3, 2025, at a price of ₹96 per share. The following table summarises the issue structure:

As disclosed in the prospectus, the Offer for Sale amounted to ₹12.90 crore, inclusive of the proportionate share of issue expenses. During the period ending March 31, 2026, the company transferred ₹12.90 crore to the selling shareholder. Total issue expenses aggregating to ₹12.75 crore had been incurred as of March 31, 2026, all of which were initially borne by the company. Of these, ₹2.22 crore represents the proportionate share attributable to the selling shareholder, which was paid by the company and remains reimbursable as on that date.

Utilisation of IPO Proceeds

Brickwork Ratings confirmed that all utilisation was in accordance with the disclosures in the offer document, with no material deviations observed. The monitoring agency noted that this is the first monitoring report and no prior reports exist for comparison. All government and statutory approvals related to the objects have been obtained. The following table details the progress in utilisation of IPO proceeds as on March 31, 2026:

*₹1.17 lakhs variance due to GST on payment of issue expenses.

Repayment of certain debt facilities (₹9.70 crore) and working capital requirements (₹30.00 crore) were fully utilised during the period. Capital expenditure towards civil construction and purchase of additional plant and machinery, as well as general corporate purposes, remain partially utilised and are ongoing. As per the prospectus, any unutilised net proceeds from a scheduled fiscal may be utilised in the subsequent fiscal, in accordance with applicable laws.

Deployment of Unutilised Proceeds

Unutilised IPO proceeds as on March 31, 2026 were deployed across bank accounts and fixed deposits. The details are as follows:

General Corporate Purposes Utilisation

Of the ₹2.84 crore allocated for General Corporate Purposes (GCP) in the offer document, ₹0.56 crore had been utilised as on March 31, 2026. The balance net fresh offer proceeds of ₹283.91 lakhs are proposed to be utilised for general corporate purposes, subject to such utilisation not exceeding 15% of the gross proceeds or ₹10 crore, whichever is lower, in compliance with SEBI (ICDR) Regulations, 2018. Intended uses include strategic initiatives, brand building and strengthening of marketing activities, and ongoing general corporate exigencies, as approved by the board.

Monitoring Agency Observations

Brickwork Ratings confirmed no deviation from the objects of the issue and no unfavourable events affecting the viability of the objects were reported. The monitoring agency's findings were verified by M/s. Vinay & Associates (FRN Number: 004462N) vide CA certificate dated May 13, 2026, and the company's statement dated May 14, 2026. The report was signed by Mr. Niraj Kumar Rathi, Senior Director, Ratings at Brickwork Ratings, on May 14, 2026.

Munish Forge has achieved a significant milestone in its defense manufacturing capabilities. The company has received approval from Ordnance Factory Chanda for the production of 120MM HE (High Explosive) bomb bodies, marking a notable expansion in its defense sector portfolio.

Key Highlights

• Approval Source: Ordnance Factory Chanda
• Product: 120MM HE bomb bodies
• Significance: Enables manufacturing of critical defense components

This approval grants Munish Forge the authority to manufacture defense components specifically for the ordnance factory. The development signifies a strategic advancement for the company in the defense manufacturing sector, potentially opening doors to more opportunities in this critical industry.

Implications for Munish Forge

The approval from Ordnance Factory Chanda may have several positive implications for Munish Forge:

1. Expanded Product Line: Addition of high-value defense components to the company's manufacturing capabilities.
2. Enhanced Market Position: Strengthened position in the defense manufacturing sector.
3. Potential Revenue Growth: Possibility of increased revenue streams from defense contracts.
4. Technical Expertise: Demonstration of the company's technical capabilities in producing sophisticated defense equipment.

While this approval marks a positive development for Munish Forge, investors and stakeholders should note that the actual impact on the company's financial performance will depend on factors such as the scale of production, contract terms, and overall demand for these components.

As the defense sector continues to be a critical area of focus for many countries, including India, such approvals and capabilities could position companies like Munish Forge to play a more significant role in the nation's defense manufacturing ecosystem.