Orient Technologies544235Capital allocation update

Monitoring agency flags issue-expense deviation; IPO proceeds deployment timeline now runs to FY27

CARE Ratings' monitoring agency report on the Rs. 120.00 crore IPO covers the quarter ended September 30, 2026.

By ScoutQuest · Mon 2 Nov 2026, 7:14 PM IST · 2 min read

Issue expense deviation: up to 10%
Capex utilisation: about 61% as of September 30, 2026
Revised deployment timeline: March 31, 2027

What this update is

Orient Technologies has shared the quarterly Monitoring Agency Report prepared by CARE Ratings Limited for the quarter ended September 30, 2026, covering the proceeds of its Initial Public Offer of Rs. 120.00 crore.

Deviation flagged in issue expenses

The report states that utilisation is not fully as per the disclosures in the Offer Document.
The reason given: for issue expenses, the company made payments to certain vendors including Goods and Services Tax (GST), while as per the prospectus issue expenses were required to be paid excluding GST.
The range of deviation is stated as up to 10%.

Where the money went this quarter

Proceeds were used towards 'Funding of capital expenditure requirements' and 'issue expenses'.
The utilisation towards funding of capital expenditure requirements is stated to be as per the Prospectus.

Timeline has been extended twice

The prospectus required funds for 'Funding of capital expenditure requirements' and 'General corporate purposes' to be used by the end of FY25.
A Special Resolution dated March 30, 2025 allowed deployment of the unutilised proceeds by the end of FY26.
During Q4FY26, a second Special Resolution dated March 26, 2026 extended the timeline for deployment of the unutilised proceeds by the end of FY27.
The revised implementation timeline stated in the report is March 31, 2027.

How much of the capex object is done

As of September 30, 2026, the company had incurred about 61% towards funding of capital expenditure requirements.

Approvals and other checks in the report

Shareholder approval for material deviations from the Offer Document: Yes, through the Special Resolutions dated March 30, 2025 and March 26, 2026.
For the capital expenditure object, approval covers changes in vendor, specifications and quantity; payments went to vendors named in the Prospectus as well as other vendors, which the Special Resolution permits so as to allow flexibility in selecting vendors.
Means of finance for the disclosed objects: no change.
Major deviation over earlier monitoring agency reports: none observed.
Government/statutory approvals related to the objects and technical assistance/collaboration arrangements: shown as not applicable.
Events affecting the viability of the objects: the report cites the delay in utilisation of proceeds towards capital expenditure and general corporate purposes, with the revised timeline of March 31, 2027 approved by Special Resolution.
The column for Comments of the Board of Directors records 'No comment received' against these points.

What a retail investor can take from this

The report records a deviation of up to 10% on issue expenses and a delay in deploying IPO money, and notes that shareholders have approved both the changes in the capex plan and the extended deployment timelines. It also records the extent of capex spend so far at about 61%, which is the number to track in the coming quarters against the March 31, 2027 timeline.

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