DIVGI TORQTRANSFER SYSTEMS543812Routine SEBI update

ICRA monitoring report: no material deviation in use of IPO proceeds

ICRA Limited's Monitoring Agency Report for the quarter ended September 30, 2026 is out.

By ScoutQuest · Tue 3 Nov 2026, 2:48 PM IST · 2 min read

INR 168.434 CroreNet proceeds as per prospectus

Original cost - capital expenditure on equipment/machinery₹150.707 Cr

Original General Corporate Purpose cost₹17.727 Cr

Net proceeds as per prospectus INR 168.434 Crore: Original cost - capital expenditure on equipment/machinery ₹150.707 Cr, Original General Corporate Purpose cost ₹17.727 Cr.

Revised net proceeds: INR 169.662 Crore (vs INR 168.434 Crore in prospectus)
General Corporate Purpose: Rs. 18.955 Crore from Rs. 17.727 Crore — up INR 1.228 Crore
Capex head: unchanged at Rs. 150.707 Crore

Issuer and agency

Divgi TorqTransfer Systems Limited has submitted the Monitoring Agency Report prepared by ICRA Limited for the quarter ended September 30, 2026. The report tracks how the money raised in the company's Initial Public Offer has been used against the objects stated at the time of the issue.

What the agency reports

No material deviation: the utilisation of the issue proceeds is in line with the objects of the issue.
All utilisation is as per the disclosures in the Offer Document, supported by a Peer Reviewed CA Certificate, confirmation from management and the bank statement of the proceeds account.
No major deviation observed over earlier monitoring agency reports.
No change in the means of finance for the disclosed objects.
No favourable or unfavourable events affecting the viability of the objects were reported.
No other information that may materially affect investor decision making was reported.

The issue and the money involved

Issue size including the Offer for Sale portion: INR 412.120 Crore.
Excluding the OFS portion: INR 180.000 Crore.
Net proceeds as per the prospectus: INR 168.434 Crore, excluding issue related expenses.
Revised net proceeds as on September 30, 2026: INR 169.662 Crore, higher on account of lower issue-related expenses.

Where the money is earmarked

Funding capital expenditure requirements for the purchase of equipment and machinery of manufacturing facilities: original cost Rs. 150.707 Crore, unchanged.
General Corporate Purpose: original Rs. 17.727 Crore, revised to Rs. 18.955 Crore.
Total: original Rs. 168.434 Crore, revised Rs. 169.662 Crore.

Why the split changed

The revision in General Corporate Purpose is because the actual offer-related expenditure came in lower than estimated by INR 1.228 Crore. In simple terms, the company spent less on the IPO process than it had budgeted, and that amount was added to the General Corporate Purpose head rather than to the plant and machinery head.

What a retail investor can take away

A monitoring agency report is a periodic check on whether IPO money is being used for the purposes stated in the offer document. In this report, the agency records no material deviation and no unfavourable events, and the means of finance for the objects is unchanged. The only movement is between two heads, driven by lower issue expenses rather than by any change in the capital expenditure plan.

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