Ace Alpha Tech Limited has submitted its quarterly monitoring agency report for Q3FY26, detailing the utilization of proceeds from its Initial Public Offering conducted in June 2025. The report, prepared by CARE Ratings Limited as the appointed monitoring agency, covers the quarter ended December 31, 2025.

IPO Proceeds Utilization Overview

The company raised ₹24.48 crore through its fresh issue, which was conducted from June 26, 2025, to June 30, 2025. During Q3FY26, Ace Alpha Tech utilized ₹3.39 crore, bringing the cumulative utilization to ₹13.12 crore since the IPO.

Object-wise Fund Deployment

The monitoring agency report reveals detailed utilization across the three primary objects outlined in the offer document:

Capital Expenditure: The company allocated ₹1.71 crore during the quarter, comprising ₹1.27 crore for construction of server facility and ₹0.44 crore for expansion of workforce through strategic hiring initiatives. This leaves ₹10.79 crore unutilized from the original allocation of ₹12.50 crore.

Unidentified Acquisition and General Corporate Purpose: Ace Alpha Tech deployed ₹1.68 crore for acquiring shares in Silverleaf Capital Services Private Limited and Silverleaf Securities Research Private Limited, following board approval. The total utilization under this category reached ₹7.78 crore, with ₹0.34 crore remaining from the original ₹8.12 crore allocation.

Issue Expenses: No additional amount was utilized during the quarter, maintaining the cumulative utilization at ₹3.63 crore against the allocated ₹3.86 crore, leaving ₹0.23 crore unutilized.

Deployment of Unutilized Proceeds

The company has strategically deployed the remaining ₹11.36 crore across various financial instruments to generate returns:

The deployment strategy reflects prudent financial management, with the company earning interest income while maintaining liquidity for future business requirements.

Compliance and Monitoring Assessment

CARE Ratings Limited confirmed that all IPO proceeds have been utilized appropriately according to the objectives mentioned in the offer document. The monitoring agency reported:

• No deviation from the objects disclosed in the offer document
• No material deviations requiring shareholder approval
• All utilization aligned with disclosed purposes
• Board approval obtained for fund utilization under unidentified acquisition

The company operates in the Information Technology - IT Enabled Services sector, with promoters Mr. Gaurav Sharma and Arika Securities Private Limited. The monitoring agency's assessment indicates proper governance and compliance with SEBI regulations regarding IPO proceeds utilization.

Implementation Timeline

The capital expenditure program continues as planned, with the offer document outlining deployment of ₹8.11 crore in FY26 and ₹5.56 crore in FY27. The monitoring agency noted no delays in implementation, with all objects progressing according to schedule. The company maintains flexibility in timing for unidentified acquisition and general corporate purposes, as no specific timeline was outlined in the offer document.

Ace Alpha Tech Limited announced that its Board of Directors has approved the strategic acquisition of shares in uTrade Solutions Private Limited during a board meeting held on January 08, 2026. The acquisition represents a significant step in the company's expansion into digital platforms and technology-based services.

Acquisition Details

The transaction involves the purchase of equity shares in uTrade Solutions, an unlisted information technology company specializing in trading technology solutions. The key parameters of the acquisition are structured as follows:

Target Company Profile

uTrade Solutions Private Limited, incorporated on May 02, 2011, operates as a trading technology company providing enterprise software for financial trading. The company offers a comprehensive suite of services including multi-asset trading platforms, algorithms, risk management solutions, direct market access, exchange solutions, and market data broadcast solutions to financial institutions and their clients.

The target company demonstrates solid financial fundamentals with a paid-up share capital of ₹34.76 lakhs consisting of 3,47,567 equity shares of ₹10.00 each. As of March 31, 2025, uTrade Solutions reported a net worth of ₹29.28 crores.

Financial Performance Track Record

uTrade Solutions has maintained consistent revenue generation over the past three years, showing growth trajectory in its core business operations:

Strategic Rationale

The acquisition aligns with Ace Alpha Tech's strategic objectives to strengthen its position in the technology sector. The company expects the transaction to enable expansion of its presence on digital platforms and technology-based services. Management anticipates that the acquisition will create operational and technological synergies between both companies, providing access to uTrade's technical expertise and scalable platforms.

Regulatory and Compliance Aspects

The transaction does not fall within the scope of related party transactions, with no promoters, promoter groups, or group companies having any interest in uTrade Solutions. The acquisition requires no governmental or regulatory approvals, streamlining the completion process. The board meeting commenced at 04:00 p.m. and concluded at 04:35 p.m. on January 08, 2026, with all necessary approvals obtained for the transaction.