Oval Projects Engineering Limited has filed its quarterly monitoring agency report for Q3 FY26, providing detailed insights into the utilization of proceeds from its Initial Public Offering (IPO) under SEBI Regulation 262. The report, prepared by Infomerics Valuation and Rating Limited, covers the period ending December 31, 2025.

IPO Details and Fund Deployment

The company successfully completed its IPO during August 28 to September 1, 2025, raising Rs. 46.74 crore through the fresh issuance of 54,99,200 equity shares at Rs. 85.00 per share. After deducting issue expenses of Rs. 5.77 crore, the net proceeds available for utilization stood at Rs. 40.97 crore.

Quarterly Fund Utilization Breakdown

During Q3 FY26, Oval Projects Engineering utilized Rs. 17.53 crore across its stated objectives, bringing the cumulative utilization to Rs. 38.25 crore since the IPO completion.

Working Capital and Corporate Purpose Utilization

The majority of funds during the quarter were deployed toward working capital requirements, with Rs. 17.48 crore utilized for general construction services and other operational needs. The company used Rs. 0.02 crore from general corporate purpose funds for internal auditor payments during the quarter.

Deployment of Unutilized Proceeds

The remaining Rs. 8.49 crore of unutilized IPO proceeds has been strategically invested across multiple instruments to generate returns while maintaining liquidity:

Compliance and Monitoring Status

The monitoring agency confirmed no deviations from the objects stated in the offer document. All utilization has been conducted as per the disclosed purposes, with some prepayment of Rs. 13.36 crore made in FY 2025-26 that was originally scheduled for FY 2026-27. The company has obtained all necessary government and statutory approvals, including principal approval from BSE.

Fund Management Structure

The company follows a structured approach to fund deployment, transferring proceeds from the public account to a monitoring account maintained with Axis Bank, then partially to current and cash credit accounts with ICICI Bank for actual utilization. This process involves some comingling of funds, which the monitoring agency tracks through management certificates and document examination.

The monitoring agency has declared that the report provides a true and fair view of IPO proceeds utilization, with no conflicts of interest identified in the monitoring process. The company continues to deploy funds according to its stated timeline, with completion expected by FY 2026-27.

Oval Projects Engineering Limited has clinched a significant contract from the Government of Tripura, marking a notable advancement in the company's project portfolio. The company recently received a Letter of Acceptance (LOA) for a healthcare infrastructure project, demonstrating its growing presence in the sector.

Contract Details

Project Significance

The contract, valued at Rs 13.23 crore, involves establishing a 50-bedded drug de-addiction centre in Santirbazar, South Tripura. This project underscores Oval Projects Engineering's capability to undertake specialized healthcare infrastructure projects, potentially opening doors for similar contracts in the future.

Company's Position

For Oval Projects Engineering Limited, this contract represents a strategic win in the healthcare infrastructure sector. It not only adds to the company's order book but also strengthens its position in government-funded projects. The domestic nature of the contract aligns with the company's focus on contributing to local infrastructure development.

Execution and Timeline

While specific timeline details were not disclosed, the company is expected to execute the project as per the contract terms set by the PWD (RSB), Government of Tripura. The successful completion of this project could enhance Oval Projects Engineering's credibility for future government tenders in the healthcare and infrastructure sectors.

Market Implications

This contract win may be viewed positively by investors, as it demonstrates the company's ability to secure government projects in specialized sectors. It could potentially impact the company's revenue stream and project pipeline in the coming quarters.

Conclusion

The Rs 13.23 crore contract from the Tripura Government marks a notable achievement for Oval Projects Engineering Limited. As the company embarks on this healthcare infrastructure project, it not only contributes to addressing social issues but also potentially paves the way for future growth in similar sectors. Stakeholders will be keen to observe how this project unfolds and its impact on the company's overall performance in the infrastructure development space.