Mittal Sections Limited Reports Minor Deviation in IPO Fund Utilization for Q3FY26

Mittal Sections Limited has submitted its monitoring agency report for the quarter ended December 31, 2025, revealing a minor deviation in the utilization of funds raised through its SME Initial Public Offer. CARE Ratings Limited, serving as the monitoring agency, identified a deviation of less than 10% from the objects disclosed in the offer document. IPO Details and Fund Deployment The company successfully raised ₹52.91 crore through its SME IPO conducted from October 07-09, 2025. During Q3FY26, the company utilized ₹37.16 crore across various stated objectives, leaving ₹15.75 crore unutilized as of December 31, 2025. Parameter: Details IPO Size: ₹52.91 crore Issue Period: October 07-09, 2025 Amount Utilized (Q3FY26): ₹37.16 crore Unutilized Amount: ₹15.75 crore Industry Sector: Iron & Steel Products Fund Utilization Breakdown The monitoring agency report provides detailed insights into how the IPO proceeds were deployed across different objectives during the quarter. Objective: Allocated Amount (₹ crore) Utilized Amount (₹ crore) Unutilized Amount (₹ crore) Capital Expenditure: 20.82 4.78 16.04 Working Capital Requirements: 15.00 15.29 (0.29) Debt Repayment: 5.00 5.00 - General Corporate Purpose: 2.06 2.06 - Issue Related Expenses: 10.03 10.03 - Identified Deviation and Concerns CARE Ratings identified an excess utilization of ₹0.29 crore towards working capital requirements, creating a negative balance in this category. The deviation arose due to differences in interpretation between the monitoring agency and company management regarding fund utilization tracking in the cash credit account. The monitoring agency noted several concerns: Comingling of funds in the cash credit account with numerous debits and credits Reliance on company declarations and CA certificates for fund utilization verification Timing differences in cheque clearances affecting quarter-end reporting Deployment of Unutilized Proceeds The company has deployed the unutilized proceeds of ₹15.75 crore primarily in fixed deposits with City Union Bank Limited. These deposits carry interest rates ranging from 5.25% to 6.75% with varying maturity dates from January 2026 to October 2026. Additionally, ₹0.25 crore remains as closing balance in the escrow account. Capital Expenditure Progress During Q3FY26, the company utilized ₹4.78 crore towards capital expenditure, comprising ₹1.78 crore for machinery purchases and ₹3.00 crore for land acquisition. The company issued cheques worth ₹0.55 crore to vendors on December 29 and 31, 2025, which were cleared in January 2026, creating timing differences in the quarterly reporting. Market Performance and Outlook The monitoring agency report highlighted that the company's share price has declined by approximately 75% from its listing price as of February 11, 2026. The company's management attributed this decline to general market conditions and investor sentiment, factors beyond their control. The report confirms that all objects remain on track for completion within FY26 as per the original timeline disclosed in the offer document. The monitoring agency will continue to track the utilization of remaining proceeds in subsequent quarters. Mittal Sections Limited has officially notified BSE Limited regarding an update to its Corporate Identification Number (CIN) following the recent listing of its equity shares on the BSE SME platform. The company communicated this regulatory update on January 8, 2026, to ensure proper record maintenance and compliance with listing requirements. CIN Update Details The company's notification reveals that its Corporate Identification Number has been updated in the Ministry of Corporate Affairs (MCA) Company Master data to reflect its new listing status. The updated CIN provides official recognition of the company's stock exchange listing. Parameter Details Updated CIN L27109GJ2009PLC056527 Notification Date January 8, 2026 BSE Scrip Code 544575 Listing Platform BSE SME Company Profile and Capital Structure According to the MCA master data, Mittal Sections Limited was incorporated on April 2, 2009, and is registered under the ROC Ahmedabad. The company operates as a public limited company in the non-government category and maintains its registered office in Ahmedabad, Gujarat. Financial Parameter Amount (₹) Authorized Capital 12,00,00,000 Paid-up Capital 11,56,75,000 Date of Last AGM September 30, 2025 Balance Sheet Date March 31, 2025 Compliance and Operational Status The MCA data confirms that Mittal Sections Limited maintains active compliance status and is currently listed on stock exchanges. The company operates two manufacturing units in Changodar Industrial Estate, Ahmedabad, and maintains its corporate office at Sona Roopa Apartment, C.G. Road, Ahmedabad. Key operational highlights include: Active compliance status with regulatory authorities Confirmed stock exchange listing status Manufacturing operations across two Gujarat-based facilities Regular AGM and financial reporting compliance Management Communication The official notification was signed by Ajaykumar B. Mittal, Chairperson & Managing Director (DIN: 01760444), who digitally authenticated the document on January 8, 2026. The company has requested BSE Limited to update its records accordingly and take note of the CIN change for all future correspondence and regulatory filings. This CIN update represents a standard regulatory procedure following the company's successful listing on the BSE SME platform, ensuring proper identification and compliance with corporate governance requirements. We’re building Scanx - to help you express your trading & investing idea, to help you analyse the markets better. Stock Markets are the true indicator of the growth of any country's economy. We are bullish on India, we are bullish on India's prospects to be one of largest economies of the world. We believe that Stock Markets provide an unique opportunity for all Indians to participate in the growth story of India. We are enabling the same for Indians. As financial services are becoming more accessible, there is now a large set of Indians today who are financially aware and literate. 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