Coromandel Engineering Confirms Proper Utilization of Rs 6.6 Crore Preferential Issue Proceeds

Coromandel Engineering Company Limited has reported no deviation in the use of proceeds from its recent preferential allotment of equity shares. The company's statement, reviewed and approved by its Audit Committee, confirms that the funds raised have been utilized as intended, adhering to regulatory requirements.

Key Details of the Preferential Issue

Aspect	Details
Number of Shares Issued	16,49,840 equity shares
Total Amount Raised	Rs 6,60,76,092
Amount Utilized	Rs 32,89,841.77
Reporting Period	Quarter ended September 30

Allocation of Funds

The company has allocated the proceeds for the following purposes:

General corporate purposes
Execution of upcoming projects
Bank guarantees and performance guarantees for projects

Regulatory Compliance

Coromandel Engineering's disclosure aligns with Regulation 32 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The Audit Committee's review and approval of the statement on November 11 underscores the company's commitment to transparency and regulatory compliance.

Management Statement

G V Manimaran, Chairman and Managing Director of Coromandel Engineering Company Limited, confirmed in the official communication to BSE Limited that there has been no deviation or variation in the use of proceeds from the allotment of equity shares.

Investor Implications

This confirmation of proper fund utilization may provide reassurance to investors regarding the company's financial management and adherence to stated objectives. It demonstrates Coromandel Engineering's commitment to using the raised capital effectively for its intended purposes, which may include strengthening its operational capabilities and pursuing growth opportunities.

The company's proactive disclosure and adherence to regulatory requirements reflect positively on its corporate governance practices, which is often a key consideration for investors, especially in the context of preferential allotments.

As Coromandel Engineering continues to deploy the raised funds, stakeholders will likely monitor the impact on the company's project execution and overall financial performance in the coming quarters.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-4.74%	-17.77%	+24.15%	+47.10%	+57.18%	+216.11%

Coromandel Engineering Company Limited , a player in the construction business segment, has announced its financial results for the second quarter of the fiscal year 2025-26, revealing a shift to net loss amid ongoing corporate activities.

Financial Performance

The company's unaudited financial results for the quarter ended September 30, 2025, paint a challenging picture:

Metric	Q2 FY26	Q2 FY25	Change
Total Revenue	₹3,994.05	-	-
Net Profit/(Loss)	(₹69.12)	₹41.49	↓266.60%

Coromandel Engineering reported a net loss after tax of ₹69.12 lakhs for the quarter, a significant downturn compared to the net profit of ₹41.49 lakhs in the corresponding quarter of the previous year.

Corporate Actions

During the quarter, the company took steps to strengthen its financial position:

Preferential Equity Issue: Coromandel Engineering raised ₹6.61 crores through a preferential equity issue.
Fund Utilization: Out of the raised amount, ₹32.90 lakhs were utilized for general corporate purposes and upcoming projects.

Management Oversight

The Board of Directors convened on November 11, 2025, to review and approve these financial results. The meeting, which commenced at 12:30 PM and concluded at 02:25 PM, also addressed other corporate matters:

Approval of the un-audited financial results for Q2 and H1 FY26.
Review of the Limited Review Report issued by the statutory auditors, M/s. CNGSN & Associates LLP.
Confirmation of no deviation in the use of proceeds from the allotment of 16,49,840 equity shares.

Regulatory Compliance

In line with SEBI regulations, the company has:

Scheduled publication of financial results in English and regional newspapers.
Made the detailed financial results available on the company's website ( www.coromandelengg.com ) and the stock exchange website.
Submitted a statement confirming no deviation in the use of proceeds from the preferential allotment.

Recent Management Changes

On November 10, 2025, Mr. V Ramakrishnan resigned from his position as Vice President - New Venture, citing personal reasons. This change in senior management may have implications for the company's strategic direction moving forward.

As Coromandel Engineering navigates through these financial challenges and corporate developments, stakeholders will be keenly watching how the company utilizes its newly raised capital and addresses the factors contributing to its current loss position.