Power Mech Projects Submits Q3FY26 Monitoring Agency Report for Rs. 350 Crore QIP
Power Mech Projects Limited submitted its Q3FY26 monitoring agency report showing Rs. 28.78 crore utilization during the quarter towards coal washery installation, bringing total project utilization to Rs. 97.08 crore. The company maintains Rs. 142.92 crore in fixed deposits earning 6.85-7.00% returns, with CARE Ratings confirming no deviations from the original Rs. 350 crore QIP objectives despite implementation delays due to approval processes.
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Power Mech Projects Limited has filed its monitoring agency report for the quarter ended December 31, 2025, in compliance with SEBI regulations regarding the utilization of proceeds from its Rs. 350 crore Qualified Institutional Placement (QIP). The report, prepared by CARE Ratings Limited, provides detailed insights into the deployment of funds raised through the QIP issued in October 2023.
QIP Utilization Progress
During Q3FY26, the company utilized Rs. 28.78 crore specifically for the installation of coal washery and coal handling plant for the Tasra opencast project. This brings the cumulative utilization for this primary objective to Rs. 97.08 crore out of the total allocated Rs. 240.00 crore.
| Object | Allocated Amount (Rs. Crore) | Utilized Till Q3FY26 (Rs. Crore) | Unutilized Amount (Rs. Crore) |
|---|---|---|---|
| Coal Washery Installation | 240.00 | 97.08 | 142.92 |
| Loan Repayment (BBK) | 20.00 | 20.00 | 0.00 |
| General Corporate Purposes | 83.40 | 83.40 | 0.00 |
| Total | 343.40 | 200.48 | 142.92 |
Deployment of Unutilized Funds
The company has strategically deployed the remaining Rs. 142.92 crore in fixed deposits with RBL Bank and monitoring accounts to ensure optimal returns while maintaining liquidity for project requirements. The deployment strategy shows prudent financial management with returns ranging from 6.85% to 7.00%.
| Investment Type | Amount (Rs. Crore) | Interest Rate (%) | Maturity Date |
|---|---|---|---|
| RBL Fixed Deposits | 170.56 | 6.85-7.00 | November 01, 2026 |
| Monitoring Account | 6.61 | - | - |
| Total Deployed | 177.18 | - | - |
Regulatory Compliance and Project Status
The monitoring agency confirmed that all fund utilization remains aligned with the original offer document objectives, with no material deviations reported. However, the report notes delays in project implementation due to the time required to obtain statutory approvals for the coal washery installation. The company received all necessary approvals by June 2025, enabling accelerated project execution.
Key Compliance Highlights:
- No deviations from original QIP objectives
- All statutory approvals obtained for Tasra project
- Loan repayment to Bank of Bahrain and Kuwait completed within timeline
- General corporate purposes fully utilized as planned
Financial Performance and Timeline
The original timeline projected Rs. 24 crore utilization in FY24, Rs. 48 crore in FY25, and Rs. 168 crore in FY26 for the coal washery project. Actual utilization shows Rs. 2.88 crore in FY24, Rs. 19.06 crore in FY25, and Rs. 75.14 crore spent till December 31, 2025, indicating the impact of approval delays on project execution.
The monitoring agency report, signed by Associate Director Tej Kiran Ghattamaneni of CARE Ratings Limited, confirms the company's adherence to regulatory requirements and transparent fund utilization practices. The report has been submitted to both NSE and BSE as mandated under SEBI regulations for listed companies with outstanding QIP proceeds.
Historical Stock Returns for Power Mech Projects
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +1.24% | -1.46% | -9.61% | -30.64% | +2.03% | +830.10% |
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