Sharvaya Metals Limited Files Q3FY26 IPO Proceeds Monitoring Report
Sharvaya Metals Limited filed its Q3FY26 IPO proceeds monitoring report showing systematic fund deployment of Rs. 12.57 crore during the quarter. The company utilized funds across working capital requirements, capital expenditure projects, and general corporate purposes, with Rs. 23.70 crore remaining unutilized and invested in fixed deposits and cash balances.
*this image is generated using AI for illustrative purposes only.
Sharvaya Metals Limited has submitted its 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 Infomerics Valuation and Rating Limited as the monitoring agency, shows systematic deployment of funds across the company's stated objectives with no material deviations reported.
IPO Structure and Proceeds
The company's IPO comprised 30,00,000 equity shares of face value Rs. 10 each, offered at Rs. 196 per share, aggregating to Rs. 58.80 crore. The issue consisted of a fresh issue of 25,00,000 equity shares amounting to Rs. 49.00 crore and an offer for sale of 5,00,000 equity shares aggregating to Rs. 9.80 crore by the promoter.
| Component: | Amount (Rs. crore) |
|---|---|
| Gross Proceeds: | 49.00 |
| Less: Issue Related Expenses: | 7.13 |
| Net Proceeds: | 41.87 |
Q3FY26 Fund Utilization Progress
During Q3FY26, the company utilized Rs. 12.57 crore from the total IPO proceeds, with Rs. 23.70 crore remaining unutilized as of December 31, 2025. The funds were deployed across four primary objectives as outlined in the offer document, showing accelerated utilization compared to the previous quarter.
| Object: | Allocated Amount (Rs. crore) | Utilized in Q3FY26 (Rs. crore) | Cumulative Utilized (Rs. crore) | Unutilized Amount (Rs. crore) |
|---|---|---|---|---|
| Working Capital Requirements: | 9.00 | 1.50 | 7.50 | 1.50 |
| Civil Construction & Electrification: | 5.17 | 0.44 | 0.60 | 4.57 |
| Plant & Machinery Purchase: | 20.40 | 3.65 | 3.65 | 16.75 |
| General Corporate Purposes: | 7.30 | 6.09 | 7.09 | 0.21 |
| IPO Expenses: | 7.13 | 0.89 | 6.49 | 0.64 |
| Total: | 49.00 | 12.57 | 25.33 | 23.67 |
Object-wise Deployment Details
Working Capital Requirements: The company transferred Rs. 1.50 crore from the monitoring account to its current account with Punjab and Sind Bank for working capital purposes during Q3FY26. This brings the total working capital utilization to Rs. 7.50 crore, supporting the company's growing operational needs.
Capital Expenditure Projects: For civil construction and electrification, the company incurred Rs. 0.44 crore during the quarter, with cumulative utilization reaching Rs. 0.60 crore. The company made significant progress in plant and machinery procurement, utilizing Rs. 3.65 crore as advance payments toward equipment purchases.
General Corporate Purposes: Rs. 6.09 crore was deployed during Q3FY26, primarily for advance payments to suppliers for plant and machinery and raw material purchases. This represents substantial utilization under this category, with only Rs. 0.21 crore remaining unutilized.
Fund Deployment and Investment Strategy
The company has invested Rs. 23.70 crore of unutilized proceeds in fixed deposits and maintains cash balances for operational flexibility. The deployment strategy includes Rs. 15.00 crore in fixed deposits with AU Small Finance Bank at 6.90% return, maturing in December 2026, and Rs. 8.70 crore maintained as cash balance in the monitoring account.
| Investment Type: | Amount (Rs. crore) | Return (%) | Maturity |
|---|---|---|---|
| Fixed Deposits: | 15.00 | 6.90% | December 2026 |
| Cash Balance: | 8.70 | - | - |
| Total Unutilized: | 23.70 |
Monitoring Agency Assessment
Infomerics Valuation and Rating Limited reported no deviations from the objects disclosed in the offer document. The monitoring agency confirmed that all utilization aligned with the stated purposes and that necessary statutory approvals, including principle approval from BSE, were obtained.
| Assessment Parameter: | Status |
|---|---|
| Deviation from Objects: | Nil |
| Range of Deviation: | Nil |
| Shareholder Approval Required: | Not Applicable |
| Statutory Approvals: | Obtained |
| Implementation Timeline: | On Track |
Business Operations Context
Sharvaya Metals Limited operates in the aluminium manufacturing segment, producing alloyed ingots, billets, slabs, sheets, circles, and EV battery housings. The company serves diverse end-use industries including automotive, electric vehicles, cookware, consumer appliances, defense, aviation, extrusions, and construction through its manufacturing facility in Ahmednagar, Maharashtra.
The IPO proceeds are strategically allocated to support the company's expansion into aluminium extrusion with 8,000 metric tonnes annual capacity, representing backward integration for electric vehicle components while enabling manufacturing of new products for construction, defense, rail, and engineering applications. All project timelines remain on track with completion targeted for FY 2026-27.
18
