CARE Ratings Report Confirms Utilization of Proceeds for Manaksia Coated Metals & Industries Ltd Preferential Issue
A monitoring agency report issued by CARE Ratings Limited reviewed the utilization of proceeds raised during the recent Preferential Allotment by Manaksia Coated Metals and Industries Limited. The assessment, covering the quarter ended June 30, 2026, confirmed that funds were utilized in line with the objectives outlined in the Offer Document, finding no material deviation from the intended objects.The monitoring report provided details on the deployment of proceeds relating to the Preferential Issue, which was raised for an amount aggregating to Rs. 134.55 crore. The Monitoring Agency confirmed that all utilization complied with the stipulations set forth in the relevant Offer Document.
Financial Breakdown of Proceeds
The total proceeds were allocated across four primary objects as defined by the company. These objects included repayment of outstanding unsecured loans, meeting working capital requirements, fulfilling general corporate purposes, and covering issue related expenses.The planned allocation structure for the Rs. 134.55 crore was as follows:
| Object | Original Cost (Rs. Crore) |
|---|---|
| Working Capital Requirement | 95.00 |
| Repayment of outstanding unsecured loans including interest accrued thereon | 35.00 |
| General Corporate Purpose | 4.30 |
| Issue Related Expenses | 0.25 |
| Total | 134.55 |
Progress and Utilization Status
The report tracked the progress of these objects, utilizing information such as Bank Statements, Statutory Auditor's certificate, and Management certificates. The data shows that out of the total funds received till December 31, 2025 (Rs 124.80 crore), the company has made significant advancements toward its financial commitments across all specified areas.The progress in implementing these objects is detailed below:
| Object | Proposed Amount (Rs. Crore) | Amount Utilized (Rs. Crore) | Unutilised Amount (Rs. Crore) |
|---|---|---|---|
| Repayment of outstanding unsecured loans including interest accrued thereon | 35.00 | 34.08 | 3.90 |
| Working Capital requirement | 95.00 | 82.27 | 3.90 |
| General Corporate Purpose | 4.30 | 4.30 | 0.00 |
| Issue Related Expenses | 0.25 | 0.25 | 0.00 |
The combined total utilization across all objects stood at Rs. 120.90 crore, leaving a remaining unutilized amount of Rs. 3.90 crore. The monitoring agency noted that the company has made no major deviations compared to earlier reports and confirmed that there have been no unfavorable events affecting the viability of these objects.
Deployment of Unutilized Funds
Regarding the unutilized proceeds from the issue, the report specified that the remaining Rs. 3.90 crore has been invested in a Preferential Issue account. The monitoring agency found no deviation regarding the objects or purposes for which the funds were raised, and no shareholder approval was required concerning material deviations from expenditures disclosed in the Offer Document.MANAKCOAT Stock Price Movement
Manaksia Coated Metals & Industries Limited shares edged higher on Tuesday, gaining 2.57% to close at ₹129.14 after trading range between a low of ₹125.26 and a high of ₹130.7. The stock saw robust activity, with over 2.20 million shares traded in the session.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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