J.G.Chemicals544138Compliance status update

ICRA monitoring report: no deviation in IPO proceeds use, spending differs from vendor specifications

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

By ScoutQuest · Tue 3 Nov 2026, 6:26 PM IST · 2 min read

Gross proceeds monitored: INR 165.000 crore
Issue size: Rs. 251.190 crore
Net proceeds as per Prospectus: INR 149.324 Crore (excluding issue related expenses)

J.G. Chemicals has submitted the Monitoring Agency Report issued by ICRA Limited for the quarter ended September 30, 2026, covering the use of the proceeds of its Initial Public Offer.
ICRA was appointed Monitoring Agency under an agreement dated February 26, 2024.
The report is a periodic check on whether the IPO money is going where the company said it would.

Deviation from the objects of the issue: No deviation — the utilisation of the issuance proceeds is in line with the objects of the issue. Range of deviation: Not Applicable.
Whether all utilisation is as per the disclosures in the Offer Document: Yes.
Whether the means of finance for the disclosed objects has changed: No.
Whether any major deviation was observed over earlier monitoring agency reports: No.
Whether there are favourable or unfavourable events affecting the viability of the objects: No, as confirmed by the issuer's management.
Whether shareholder approval was obtained for material deviations: Not Applicable.
Whether arrangements for technical assistance or collaboration are in operation: Not Applicable.

ICRA's comment on utilisation: "While the utilisation of funds remains in line with the objects outlined in the prospectus, the actual spending does not correspond with the vendors' specifications as originally proposed."
On whether all Government or statutory approvals related to the objects have been obtained, the reply is No; the report notes that civil and construction work related to the R&D Unit is in an advanced stage of completion and equipment installation is under way.
Against the section on other information that may materially affect investor decision-making, the reply is No.

Issue size: Rs. 251.190 crore.
With the OFS portion: INR 251.190 Crore; excluding the OFS portion: INR 165.000 Crore.
Net proceeds as per Prospectus: INR 149.324 Crore (excluding issue related expenses).
ICRA has monitored Gross Proceeds of INR 165.000 crore in Q2 FY2027.
The issue was an Initial Public Offer of equity shares, with the issue period running from March 05, 2024 to March 07, 2024.

The core reading is that the IPO money is being used for the stated purposes, with no deviation flagged and no change in the means of finance.
The two things ICRA has put on record are the mismatch between actual spending and the vendors' original specifications, and the fact that statutory approvals for the objects are not yet in place, with work on the R&D Unit still being completed.
ICRA states that it does not perform an audit and does not independently verify the information or certifications it receives, and that the report is not a commentary on the quality of the objects of the issue or on the reasonableness of the costs or spending.
On each item in this section, the comments of the Issuer's Board of Directors are recorded as "No comments".

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