Eppeltone Engineers leaves Rs 1.7547 crore machinery unspent

Eppeltone Engineers Limited had Rs 1.7547 crore of its Rs 5 crore initial public offering machinery allocation unutilised at September 30, 2026, while a utilisation certificate says Rs 93.60 lakh of issue-expense overruns were met from general corporate purpose proceeds. The certificate reported Rs 43.1365 crore utilised from Rs 43.9552 crore raised.

How much of Eppeltone Engineers' IPO remains unutilised?

Eppeltone Engineers reported Rs 1.9122 crore of initial public offering, or IPO, proceeds as unutilised at September 30, 2026. The utilisation certificate prepared by Abhay Sharma & Co. lists Rs 1.7547 crore pending for additional factory machinery and Rs 15.75 lakh estimated to be paid to bankers to the issue.

The machinery allocation was the largest outstanding IPO object. Eppeltone Engineers had disclosed Rs 5 crore for capital expenditure on additional machinery at its factory, of which Rs 3.2453 crore had been used by September 30, 2026. The certificate recorded no deviation for this object, but said the Rs 1.7547 crore balance remained pending for utilisation.

Working-capital requirements had received the full Rs 30 crore disclosed in the offer document by September 30, 2026. General corporate purpose, or GCP, was also shown as fully utilised at Rs 4.3638 crore, leaving machinery as the only operating allocation with a stated unspent balance.

The IPO comprised 34.34 lakh equity shares issued at Rs 128 each, including a face value of Rs 10 and a premium of Rs 118 per share. Eppeltone Engineers raised Rs 43.9552 crore and listed on the NSE Emerge platform on June 24, 2025, according to the financial-results filing dated November 11, 2026.

Where is Eppeltone Engineers' unused machinery money held?

Eppeltone Engineers said Rs 5.70 lakh of the pending machinery allocation was temporarily invested in a fixed deposit with HDFC Bank at 6.60% interest. The balance of the Rs 1.7547 crore was held in HDFC Current Account No. 50200111688021, according to the utilisation certificate.

The fixed deposit represented a small part of the pending machinery amount, while the certificate says the remaining sum was held in the current account. The filing characterises the money as temporarily parked and does not describe a change in the original Rs 5 crore machinery objective.

The certificate does not give a completion date for the additional machinery installation or a timetable for deployment of the Rs 1.7547 crore balance. It was issued on November 11, 2026, based on examination of Eppeltone Engineers' books, vouchers and supporting documents for the position at September 30, 2026.

Eppeltone Engineers' balance sheet showed capital work in progress of Rs 4.1524 crore at September 30, 2026, up from Rs 1.847 crore at March 31, 2026. Property, plant and equipment rose to Rs 32.6105 crore from Rs 31.8017 crore over the same period, although the filing does not directly link either balance-sheet movement to the IPO machinery allocation.

How did Eppeltone Engineers fund the issue-expense overrun?

Eppeltone Engineers met Rs 93.60 lakh of issue expenses above its prospectus estimate from the GCP portion of IPO proceeds. Actual issue expenses were stated at Rs 5.5274 crore, compared with the Rs 4.5914 crore amount disclosed in the offer document.

The certificate records a Rs 1.0935 crore deviation in the issue-expense line. It attributes Rs 93.60 lakh of that amount to excess expenditure over the estimate and separately identifies Rs 15.75 lakh as an estimated payment still due to bankers to the issue.

The Rs 15.75 lakh payable to bankers was held in an escrow account as of September 30, 2026. The certificate describes it as an amount yet to be paid, while the issue-expense line reports Rs 5.5274 crore as actual utilised and Rs 15.75 lakh as unutilised.

The GCP line nevertheless shows the full Rs 4.3638 crore offer-document allocation as utilised. The filing therefore reports a reallocation within the IPO proceeds for the Rs 93.60 lakh overrun, rather than proceeds raised beyond the Rs 43.9552 crore IPO size.

What changed in Eppeltone Engineers' asset spending and funding position?

Eppeltone Engineers reported Rs 6.915 crore of net purchases of fixed assets in the six months ended September 30, 2026, down from Rs 14.9733 crore in the comparative September 30, 2025 period. The lower total fixed-asset purchase figure does not measure the specific IPO machinery programme, but it coincided with the Rs 1.7547 crore machinery allocation remaining pending.

Capital work in progress increased by Rs 2.3054 crore between March 31, 2026 and September 30, 2026, while intangible assets under development increased to Rs 7.5345 crore from Rs 4.5628 crore. These categories cover wider asset development activity, and the company did not allocate the movements between IPO-funded and other spending in the filing.

Long-term borrowings increased to Rs 35.9359 crore at September 30, 2026 from Rs 16.4838 crore at March 31, 2026. Short-term borrowings declined to Rs 17.7193 crore from Rs 22.5238 crore, while the cash-flow statement reported a Rs 19.4521 crore increase in bank borrowings during the six months ended September 30, 2026.

Conclusion

Eppeltone Engineers had used Rs 43.1365 crore of its Rs 43.9552 crore IPO proceeds by September 30, 2026, with the full Rs 30 crore working-capital allocation deployed. The remaining disclosed matters were Rs 1.7547 crore pending for factory machinery and Rs 15.75 lakh estimated for bankers to the issue, alongside Rs 93.60 lakh of excess issue costs funded from GCP.

The next disclosed developments to watch are the use of the machinery balance held through the HDFC Bank fixed deposit and current account, and payment of the Rs 15.75 lakh escrow balance. The November 11, 2026 certificate gives no scheduled completion date for the machinery installation or the bankers-to-the-issue payment.