Aequs544634Compliance status update

Monitoring agency report: no material deviation in use of Pre-IPO and IPO proceeds

CARE Ratings' Monitoring Agency Report for the quarter ended September 30, 2026 on use of Aequs' Pre-IPO placement and IPO proceeds is out.

By ScoutQuest · Wed 28 Oct 2026, 5:27 PM IST · 3 min read

Rs. 5.15 croresEntire unutilised amount in subsidiary accounts

Unutilised IPO proceeds with ATPL in accountRs. 5 crores

Unutilised amount with KTMCPL in fixed depositRs 0.15 crore

Entire unutilised amount in subsidiary accounts Rs. 5.15 crores: Unutilised IPO proceeds with ATPL in account Rs. 5 crores, Unutilised amount with KTMCPL in fixed deposit Rs 0.15 crore.

Issue size: Rs. 144.00 crore
Equity shares raised in Pre-IPO placement: 11,615,713 equity shares
Unutilised proceeds as on September 30, 2026: Rs. 5.15 crores

Quarterly check on issue proceeds

Aequs has submitted the Monitoring Agency Report issued by CARE Ratings Limited for the quarter ended September 30, 2026, covering the utilisation of proceeds from its Pre-Initial Public Offer Placement and Initial Public Offer. The report was reviewed and taken on record by the Audit Committee and the Board of Directors.

The headline

The Monitoring Agency has confirmed in its report that there is no material deviation in utilisation of the proceeds as stated in the objects of the Issue. The report records deviation from the objects as None and range of deviation as Not applicable.

What was raised

Issue size: Rs. 144.00 crore, through 11,615,713 equity shares in the Pre-Initial Public Offer.
The company transferred Rs. 13.41 to its subsidiary Aequs Toys Private Limited (ATPL) towards General Corporate Purposes during Q4FY26. ATPL further transferred a part of this to its subsidiary Koppal Toys Molding Co. Pvt Ltd (KTMCPL) during Q1FY27.
As on September 30, 2026, unutilised IPO proceeds of Rs. 5 crores with ATPL were parked in its current account, and Rs 0.15 crore with KTMCPL was parked in a fixed deposit account with a scheduled commercial bank.
The report puts the entire unutilised amount at Rs. 5.15 crores, retained in fixed deposit and current accounts of the company's subsidiaries maintained with scheduled commercial banks.

Points the agency flagged

Against "Whether all utilization is as per the disclosures in the Offer Document?", the reply is No. The Monitoring Agency notes that the offer document does not explicitly specify the parking of unutilised Pre-IPO funds in subsidiary bank accounts. The Board's comment is "Noted".
Against "Is there any major deviation observed over the earlier monitoring agency reports?", the reply is Yes, with the same observation on parking in subsidiary bank accounts.
Against "Whether the means of finance for the disclosed objects of the issue have changed?", the reply is Yes, while the Monitoring Agency's comment reads "None".

Cost of one object revised

For repayment and/or prepayment of certain outstanding borrowings and prepayment penalties, the original cost as per the Offer Document was Rs. 20.25 crore and the revised cost is Rs. 20.33 crore.
The report records that the revision in cost was ratified post-facto by the Board of Directors in its meeting dated January 29, 2026.

Other replies in the report

Shareholder approval for material deviations: Not applicable; no material deviations observed.
All Government and statutory approvals related to the objects: Not applicable.
Arrangements for technical assistance or collaboration: Not applicable.
Favourable or unfavourable events affecting viability of the objects: No.

What it means for a retail investor

A monitoring agency is an independent entity that checks, quarter after quarter, whether the money a company raised is being used for the purposes it promised. Its report is a periodic check, and the main statement here remains that there is no material deviation. The details worth tracking are the Rs. 5.15 crores of unutilised proceeds parked in subsidiary bank accounts and the agency's observation that the offer document does not explicitly cover such parking. Progress on deployment of the remaining amount will show up in the coming quarterly reports.

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