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Azad Engineering Limited — Capital/Financing Update 2026
May 13, 2026
59152_rns_2026-05-13_ec94c89d-e2ea-4f60-92d0-16936fa85133.pdf
Capital/Financing Update
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AZAD
May 13, 2026
To,
The Listing Department
BSE Limited
Department of Corporate Affairs
Phiroze Jeejeebhoy Towers, Dalal Street
Mumbai – 400 001
Scrip ID - 544061
To,
The Listing Department
National Stock Exchange of India Limited
Exchange Plaza, Plot No. C/1, G Block
Bandra-Kurla Complex, Bandra (E)
Mumbai - 400 051
Scrip Code - AZAD
Dear Sir/Madam,
Subject: Report of the Monitoring Agency with respect to utilization of proceeds raised through Qualified Institutional Placement (QIP) by Azad Engineering Limited.
Pursuant to Regulation 173A of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018 and Regulation 32 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, we are enclosing herewith the monitoring agency report issued by Care Ratings Limited, Monitoring Agency, in respect of utilization of proceeds raised through QIP by the Company for the quarter ended March 31, 2026.
The above-mentioned disclosure will also be hosted on the website of the Company at www.azad.in
You are requested to kindly take the same in your records.
Thanking you.
Yours truly,
For Azad Engineering Limited
PRANEETH
ABHISHEK
GUNDA
Digitally signed by
PRANEETH ABHISHEK
GUNDA
Date: 2026.05.13 17:53:39
+05'30'
G. Pranneth Abhishek
Company Secretary, Compliance Officer and Head Legal
Membership No.: ACS-35583
Encl.: As above
Azad Engineering Limited
Plot No.90/C, 90/D, Phase -1,
I.D.A., Jeedimetla, Hyderabad,
Telangana-500 055, India.
Contact: 040-23097007
Email: [email protected]
Web: www.azad.in
CIN NO: L74210TG1983PLC004132
GSTIN: 36AAECA9452H1ZJ
CS-2601-53
AZAD
Careedge RATINGS
No. CARE/HRO/GEN/2026-27/1007
The Board of Directors
Azad Engineering Limited
90/C, 90/D, Phase -1
I.D.A Jeedimetla,
Hyderabad
Telangana 500055
May 13, 2026
Dear Sir/Ma’am,
Monitoring Agency Report for the quarter ended March 31, 2026 - in relation to the QIP issue of Azad Engineering Limited (“the Company”)
We write in our capacity of Monitoring Agency for the QIP Issue for the amount aggregating to ₹700.00 crore of the Company and refer to our duties cast under 82 of the Securities & Exchange Board of India (Issue of Capital & Disclosure Requirements) Regulations.
In this connection, we are enclosing the Monitoring Agency Report for the quarter ended March 31, 2026, as per aforesaid SEBI Regulations and Monitoring Agency Agreement dated February 25, 2025.
Request you to kindly take the same on record.
Thanking you,
Yours faithfully,
Niraj Thorat
Niraj Thorat
Assistant Director
[email protected]
CARE Ratings Limited
401, Ashoka Scintilla, 3-6-520, Himayat Nagar,
Hyderabad - 500 029
Phone: +91-40-4010 2030
4th Floor, Godrej Coliseum, Somaiya Hospital
Road, Off Eastern Express Highway, Sion (East),
Mumbai - 400 022
Phone: +91-22-6754 3456
Email: [email protected] • www.careedge.in
CIN-L67190MH1993PLC071691
Careedge RATINGS
Report of the Monitoring Agency
Name of the issuer: Azad Engineering Ltd
For quarter ended: March 31, 2026
Name of the Monitoring Agency: CARE Ratings Limited
(a) Deviation from the objects: Nil
(b) Range of Deviation: Not applicable
Declaration:
We declare that this report provides an objective view of the utilization of the issue proceeds in relation to the objects of the issue based on the information provided by the Issuer and information obtained from sources believed by it to be accurate and reliable. The MA does not perform an audit and undertakes no independent verification of any information/ certifications/ statements it receives. This Report is not intended to create any legally binding obligations on the MA which accepts no responsibility, whatsoever, for loss or damage from the use of the said information. The views and opinions expressed herein do not constitute the opinion of MA to deal with any security of the Issuer in any manner whatsoever. Nothing mentioned in this report is intended to or should be construed as creating a fiduciary relationship between the MA and any issuer or between the agency and any user of this report. The MA and its affiliates also do not act as an expert as defined under Section 2(38) of the Companies Act, 2013.
The MA or its affiliates may have a credit rating or other commercial transactions with the entity to which the report pertains and may receive separate compensation for its ratings and certain credit-related analyses. We confirm that there is no conflict of interest in such relationship/interest while monitoring and reporting the utilization of the issue proceeds by the issuer, or while undertaking credit rating or other commercial transactions with the entity.
We have submitted the report herewith in line with the format prescribed by SEBI, capturing our comments, where applicable. There are certain sections of the report under the title "Comments of the Board of Directors", that shall be captured by the Issuer's Management / Audit Committee of the Board of Directors subsequent to the MA submitting their report to the issuer and before dissemination of the report through stock exchanges. These sections have not been reviewed by the MA, and the MA takes no responsibility for such comments of the issuer's Management/Board.
Niraj Thorat
Signature:
Name and designation of the Authorized Signatory: Niraj Thorat
Designation of Authorized person/Signing Authority: Assistant Director
CARE Ratings Limited
401, Ashoka Scintilla, 3-6-520, Himayat Nagar,
Hyderabad - 500 029
Phone: +91-40-4010 2030
CIN-L67190MH1993PLC071691
4th Floor, Godrej Coliseum, Somaiya Hospital
Road, Off Eastern Express Highway, Sion (East),
Mumbai - 400 022
Phone: +91-22-6754 3456
Email: [email protected] • www.careedge.in
Careedge RATINGS
1) Issuer Details:
Name of the issuer : Azad Engineering Limited
Name of the promoter : Rakesh Chopdar
Industry/sector to which it belongs : Industrial Manufacturing – Industrial Products
2) Issue Details
Issue Period : February 25, 2025, to March 03, 2025
Type of issue (public/rights) : QIP
Type of specified securities : Equity Shares
IPO Grading, if any : Not Applicable
Issue size (in crore) : ₹700.00 crore
3) Details of the arrangement made to ensure the monitoring of issue proceeds:
| Particulars | Reply | Source of information / certifications considered by Monitoring Agency for preparation of report | Comments of the Monitoring Agency | Comments of the Board of Directors |
|---|---|---|---|---|
| Whether all utilization is as per the disclosures in the Offer Document? | No | CA certificate*, Bank statements, and offer document | Rs.540.27 crore has been utilized towards the objects of the placement, and the balance fund is maintained in Fixed Deposits, and MA account. | |
| As per the letter of offer, the timeline for utilization of funds towards capital expenditure was till March 31, 2026. However, the proceeds of ₹156.34 crore remain unutilized as on March 31, 2026. | The timing of utilisation remains aligned with business requirements and the stated objects of the QIP. The deferment in utilisation of the funds will not have any adverse impact on its operations or continuing growth of the Company. | |||
| Whether shareholder approval has been obtained in case of material deviations# from expenditures disclosed in the Offer Document? | NA | Board Resolution | The board of directors, vide resolution dated February 13, 2026, approved the extension of timeline for implementation of objects of the issue from March 31, 2026, to March 31, 2027. | In compliance with the applicable laws the Board of Directors at its meeting held on February 13, 2026, approved the extension of timeline for implementation of objects of the issue from March 31, 2026, to March 31, 2027. |
| Whether the means of finance for the disclosed objects of the issue have changed? | No | NA | NA | No comments received |
| Is there any major deviation observed over the earlier monitoring agency reports? | No | NA | We highlighted potential of delay in object during last Monitoring Agency report dated February 14, 2026. | The timing of utilisation remains aligned with business requirements and the stated objects of the QIP. The deferment in |
CARE Ratings Ltd.
N
Careedge
RATINGS
| Particulars | Reply | Source of information / certifications considered by Monitoring Agency for preparation of report | Comments of the Monitoring Agency | Comments of the Board of Directors |
|---|---|---|---|---|
| utilisation of the funds will not have any adverse impact on its operations or continuing growth of the Company | ||||
| Whether all Government/statutory approvals related to the object(s) have been obtained? | Yes | Management declaration | NA | No comments received |
| Whether all arrangements pertaining to technical assistance/ collaboration are in operation? | NA | Management declaration | NA | No comments received |
| Are there any favorable/unfavorable events affecting the viability of these object(s)? | No | NA | No | No comments received |
| Is there any other relevant information that may materially affect the decision making of the investors? | Yes | Bank Statements, Management declaration, Board resolution dated February 13, 2026 | As per the letter of offer, the timeline for utilization of funds towards capital expenditure was till March 31, 2026. However, the proceeds of ₹156.34 crore remain unutilized as on March 31, 2026. The board of directors, vide resolution dated February 13, 2026, approved the extension of timeline for implementation of objects of the issue from March 31, 2026 to March 31, 2027. | The timing of utilisation remains aligned with business requirements and the stated objects of the QIP. The deferment in utilisation of the funds will not have any adverse impact on its operations or continuing growth of the Company. |
*Chartered Accountant certificate from M/s Dagliya & Co Chartered Accountants dated April 23, 2026.
2
CARE Ratings Ltd.
Careedge
RATINGS
4) Details of objects to be monitored:
(i) Cost of objects -
| Sr. No | Item Head | Source of information / certifications considered by Monitoring Agency for preparation of report | Original cost (as per the Offer Document) in Rs. Crore | Revised Cost in Rs. Crore | Comments of the Monitoring Agency | Comments of the Board of Directors | ||
|---|---|---|---|---|---|---|---|---|
| Reason for cost revision | Proposed financing option | Particulars of -firm arrangements made | ||||||
| 1 | Funding and part-funding the capital expenditure of our Company | Chartered Accountant certificate*, Final Prospectus, Placement Document | 525.00 | NA | NA | No comments received | No comments received | No comments received |
| 2 | General Corporate purposes | Chartered Accountant certificate*, Final Prospectus, Placement Document | 156.21 | NA | NA | No comments received | No comments received | No comments received |
| 3 | Issue Expenses | Chartered Accountant certificate*, Final Prospectus, Placement Document | 18.79 | NA | NA | No comments received | No comments received | No comments received |
| Total | 700.00 |
*Chartered Accountant certificate from M/s Dagliya & Co Chartered Accountants dated April 23, 2026.
(ii) Progress in the objects -
| Sr. No | Item Head | Source of information / certifications considered by Monitoring Agency for preparation of report | Amount as proposed in the Offer Document in Rs. Crore | Amount utilised in Rs. Crore | Total unutilised amount in Rs. crore | Comments of the Monitoring Agency | Comments of the Board of Directors | |||
|---|---|---|---|---|---|---|---|---|---|---|
| As at beginning of the quarter in Rs. Crore | During the quarter in Rs. Crore | At the end of the quarter in Rs. Crore | Reasons for idle funds | Proposed course of action | ||||||
| 1 | Funding and part-funding the capital expenditure of our Company | CA certificate*, Bank statements, Placement Document | 525.00 | 322.71 | 45.95 | 368.66 | 156.34 | The company utilized Rs.45.95 crore towards capex during the quarter, with payments made through the monitoring account. | No comments received | No comments received |
3
CARE Ratings Ltd.
Careedge
RATINGS
| Sr. No | Item Head | Source of information / certifications considered by Monitoring Agency for preparation of report | Amount as proposed in the Offer Document in Rs. Crore | Amount utilised in Rs. Crore | Total unutilised amount in Rs. crore | Comments of the Monitoring Agency | Comments of the Board of Directors | |||
|---|---|---|---|---|---|---|---|---|---|---|
| As at beginning of the quarter in Rs. Crore | During the quarter in Rs. Crore | At the end of the quarter in Rs. Crore | Reasons for idle funds | Proposed course of action | ||||||
| 2 | General Corporate purposes | CA certificate*, Bank statements, Placement Document | 156.21 | 156.21 | - | 156.21 | - | Fully utilized. | No comments received | No comments received |
| 3 | Issue Expenses | CA certificate*, Bank statements, Placement Document | 18.79 | 14.74 | 0.66 | 15.40 | 3.39 | The company utilized Rs.0.66 crore during the quarter towards issue expenses, with all payments made through the monitoring account. | No comments received | No comments received |
| Total | 700.00 | 493.66 | 46.61 | 540.27 | 159.73 |
- Chartered Accountant certificate from M/s Dagliya & Co Chartered Accountants dated April 23, 2026.
(iii) Deployment of unutilized proceeds:
| Sr. No. | Type of instrument and name of the entity invested in | Amount invested | Maturity date | Earning | Return on Investment (%) | Market Value at the end of quarter |
|---|---|---|---|---|---|---|
| 1 | Balance in Monitoring Agency Account | 0.01 | - | - | - | 0.01 |
| 2. | Fixed Deposit, Union Bank of India | 120.00 | April 14, 2026 | 1.62 | 6.40 | 121.62 |
| 3. | Fixed Deposit, Yes Bank Limited | 40.00 | April 15, 2026 | 0.54 | 6.40 | 40.54 |
| Total unutilized proceeds (including interest income) | 160.01 | 2.16 | 162.17 | |||
| Less: Interest earned on unutilized proceeds | 0.28 | |||||
| Total unutilized proceeds (excl: interest income) | 159.73 |
(iv) Delay in implementation of the object(s) -
| Objects | Completion Date | Delay (no. of days/ months) | Comments of the Board of Directors | ||
|---|---|---|---|---|---|
| As per the offer document | Actual | Reason of delay | Proposed course of action | ||
| Funding capital expenditure | Over a period of two Fiscals by the end of FY2026 | Ongoing | As per the letter of offer, the timeline for utilization of funds towards capital expenditure was till March 31, 2026. However, the proceeds of ₹156.34 crore remain unutilized as on March 31, 2026. The board | The timing of utilisation remains aligned with business requirements and the stated objects of the QIP. The deferment | The timing of utilisation remains aligned with business requirements and the stated objects of the QIP. The deferment |
CARE Ratings Ltd.
N
Careedge
RATINGS
| Objects | Completion Date | Delay (no. of days/ months) | Comments of the Board of Directors | ||
|---|---|---|---|---|---|
| As per the offer document | Actual | Reason of delay | Proposed course of action | ||
| of directors, vide resolution dated February 13, 2026, approved the extension of timeline for implementation of objects of the issue from March 31, 2026 to March 31, 2027. | in utilisation of the funds will not have any adverse impact on its operations or continuing growth of the Company. | in utilisation of the funds will not have any adverse impact on its operations or continuing growth of the Company. | |||
| General Corporate Purposes (GCP) | Over a period of three Fiscals by the end of FY2027 | H2FY26 | No delay | No comments received | No comments received |
| Issue Expenses | Not specified | Ongoing | NA | No comments received | No comments received |
5) Details of utilization of proceeds stated as General Corporate Purpose (GCP) amount in the offer document:
| Sr. No | Item Head^ | Amount in Rs. Crore | Source of information / certifications considered by Monitoring Agency for preparation of report | Comments of Monitoring Agency | Comments of the Board of Directors |
|---|---|---|---|---|---|
| NA | NA | NA | NA | Proceeds already utilized in quarter ended September 30, 2025. | No comments received |
Section from the offer document related to GCP:
"Our Company proposes to deploy the balance Net Proceeds aggregating to ₹1,562.10 million towards general corporate purposes and business requirements of our Company, subject to such amount not exceeding 25% of the gross proceeds of the Issue, in compliance with the SEBI ICDR Regulations. Such general corporate purposes may include, but are not restricted to, (i) investments in accordance with the investment policy of our Company, (ii) meeting exigencies, salaries and meeting expenses incurred by our Company in the ordinary course of business as may be approved by the Board or a duly appointed committee from time to time, subject to compliance with the necessary provisions of the Companies Act, 2013, incurred by our Company in the ordinary course of business, as may be applicable. Further, this portion of Net Proceeds may also be utilised to meet the shortfall in the Net Proceeds for the Objects set out above.
In addition to the above, our Company may utilise the Net Proceeds towards other expenditure considered expedient and as approved periodically by our Board, subject to compliance with necessary provisions of the Companies Act and other applicable laws. The quantum of utilisation of funds towards each of the above purposes will be determined by our Board, based on the amount available under this head and the business requirements of our Company, from time to time."
CARE Ratings Ltd.
Careedge RATINGS
Disclaimers to MA report:
a) This Report is prepared by CARE Ratings Ltd (hereinafter referred to as "Monitoring Agency/MA"). The MA has taken utmost care to ensure accuracy and objectivity while developing this Report based on the information provided by the Issuer and information obtained from sources believed by it to be accurate and reliable. The views and opinions expressed herein do not constitute the opinion of MA to deal in any security of the Issuer in any manner whatsoever.
b) This Report has to be seen in its entirety; the selective review of portions of the Report may lead to inaccurate assessments. For the purpose of this Report, MA has relied upon the information provided by the management /officials/ consultants of the Issuer and third-party sources like statutory auditor/peer reviewed audit firm appointed by the Issuer believed by it to be accurate and reliable.
c) Nothing contained in this Report is capable or intended to create any legally binding obligations on the MA which accepts no responsibility, whatsoever, for loss or damage from the use of the said information. The MA is also not responsible for any errors in transmission and specifically states that it, or its directors, employees do not have any financial liabilities whatsoever to the users of this Report.
d) The MA and its affiliates do not act as a fiduciary. The MA and its affiliates also do not act as an expert to the extent defined under Section 2(38) of the Companies Act, 2013. While the MA has obtained information from sources it believes to be reliable, it does not perform an audit and undertakes no independent verification of any information/ certifications/ statements it receives from statutory auditors (or from peer reviewed CA firms), lawyers, chartered engineers or other experts, and relies on in its reports.
e) The MA or its affiliates may have other commercial transactions with the entity to which the report pertains. As an example, the MA may rate the issuer, or any debt instruments / facilities issued or proposed to be issued by the issuer that is subject matter of this report. The MA may receive separate compensation for its ratings and certain credit-related analyses, normally from issuers or underwriters of the instruments, facilities, securities or from obligors.
CARE Ratings Ltd.