Desco Infratech Secures Rs 7 Crore BPCL Contract, Expands into Eastern India

Desco Infratech Limited , a company known for its infrastructure development projects, has marked a significant milestone in its growth trajectory. The company has been declared the successful bidder for a substantial contract from Bharat Petroleum Corporation Limited (BPCL), a major player in India's oil and gas sector.

Contract Details

Desco Infratech has secured a contract for Last Mile Connectivity (LMC) and associated works for City Gas Distribution (CGD) projects across four geographical areas in Odisha. This project, awarded by BPCL, represents a strategic expansion for Desco Infratech into the Eastern region of India.

Contract Aspect	Details
Project Scope	Last Mile Connectivity and associated works for CGD projects
Geographical Coverage	Four areas in Odisha
Minimum Contract Value	Rs 7.00 Crore (including GST)
Awarding Company	Bharat Petroleum Corporation Limited (BPCL)

Strategic Implications

This contract win is more than just a financial boost for Desco Infratech. It marks the company's entry into a new geographical location, specifically the Eastern region of India. This expansion is expected to:

Strengthen Desco Infratech's operational presence
Widen the company's footprint beyond its existing areas of operation
Potentially open up new opportunities in the region

Company's Response

In a regulatory filing, Desco Infratech confirmed its status as the lowest bidder at the L1 stage, leading to its declaration as the Successful Bidder. The company stated that further details, including those required under SEBI regulations, will be disclosed separately upon receipt of the Letter of Intent (LOI) or Letter of Award (LOA) or Purchase Order from the concerned authority.

Conclusion

This contract win demonstrates Desco Infratech's competitive edge in the infrastructure sector and its ability to secure projects from major public sector undertakings like BPCL. As the company expands its geographical reach, investors and industry observers will be keen to see how this strategic move impacts Desco Infratech's future growth and market position.

Investors are advised to monitor further announcements from the company for more detailed information about the project and its potential impact on Desco Infratech's financial performance.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+5.57%	+4.03%	-1.16%	-9.56%	+19.05%	+19.05%

Desco Infratech Limited has successfully obtained shareholder approval for its proposal to redirect Rs 168.04 lakhs from IPO proceeds originally allocated for machinery purchase towards working capital requirements. The resolution was passed through a postal ballot process that concluded on December 18, 2025.

Voting Results and Approval

The company announced the voting results on December 20, 2025, confirming that shareholders have approved the variation in terms of objects of the Initial Public Offering (IPO). The postal ballot was conducted exclusively through remote e-voting facilitated by National Securities Depository Limited (NSDL).

Voting Details:	Information
Voting Period:	November 19 to December 18, 2025
Cut-off Date:	November 14, 2025
Voting Method:	E-voting through NSDL
Resolution Type:	Special Resolution
Result Declaration:	December 20, 2025

Original Proposal Details

The reallocation proposal was initiated to optimize the utilization of IPO funds based on current business requirements. The management identified that existing machinery and technical capabilities were sufficient for current operational needs, while new project acquisitions required enhanced working capital support.

Reallocation Specifics:	Amount (Rs in Lakhs)
Amount to be Reallocated:	168.04
Original Purpose:	Purchase of machineries
Proposed New Purpose:	Working capital requirements
Current Status:	Approved by shareholders

IPO Fund Utilization Overview

The approved change affects only the unutilized portion earmarked for machinery purchase. The complete IPO fund utilization structure shows strategic deployment across various corporate objectives.

Object as per Prospectus:	IPO Proceeds (Rs in Lakhs)	Amount Spent:	Unutilized Amount:
Corporate office setup:	104.29	104.29	0.00
Machinery purchase:	168.04	0.00	168.04
Working capital:	1,800.00	1,800.00	0.00
General corporate purposes:	617.27	617.27	0.00

Management Rationale

The Board of Directors justified this reallocation based on comprehensive operational assessment and strategic business requirements. Key factors included sufficient existing infrastructure, acquisition of new projects in existing and new geographical areas, and the need for adequate liquidity to execute high-value contracts without depending on external borrowings.

Regulatory Compliance

The postal ballot process was conducted in full compliance with Section 108 of the Companies Act, 2013, and Regulation 44 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. CS Mohan D Baid of MD Baid Associates served as the scrutinizer for the voting process, ensuring transparency and fairness in the proceedings.

With shareholder approval secured, Desco Infratech can now proceed with redirecting the unutilized IPO funds towards working capital, supporting its growth strategy and enhancing revenue generation capacity through timely project execution.